ATVI Stock Overview
Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
No risks detected for ATVI from our risk checks.
Activision Blizzard Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$79.12|
|52 Week High||US$104.53|
|52 Week Low||US$56.40|
|1 Month Change||21.42%|
|3 Month Change||0.60%|
|1 Year Change||-14.35%|
|3 Year Change||73.02%|
|5 Year Change||96.77%|
|Change since IPO||398.08%|
Recent News & Updates
Merger Arbitrage Mondays - Activision Blizzard Trades At A Big Discount To Microsoft's Acquisition Price
Microsoft acquires Activision in an all-cash deal valued at $68.7 billion. Through this deal, Microsoft expects to strengthen its gaming presence and enter the metaverse with strong franchises. The deal is currently trading at an unusually large 16.78% spread or 14.18% annualized.
Microsoft Takes Out Activision: Everything You Need To Know
Microsoft will acquire Activision Blizzard for $95 per share. This makes for a hefty premium compared to where ATVI traded in recent months, but ATVI traded at higher prices one year ago. This deal makes a lot of sense for MSFT, as it will be accretive while there is also a strategic rationale to get gaming IP.
Activision Blizzard: Growth At A Reasonable Price And An Opportunity To Buy The Dip
For investors looking for exposure to the gaming industry at a reasonable valuation, Activision is a logical choice. All three segments of Activision have operating margins over 40%. Activision was in the news for the wrong reasons in 2021, causing a significant selloff in the second half of the year. I detail some of the options investors have with options. Activision has a rock-solid balance sheet and is set up for continued double-digit dividend growth moving forward.
Activision Blizzard's (NASDAQ:ATVI) Growth Prospects Have Shrunk
Despite favorable sector developments, Activision Blizzard, Inc. (NASDAQ: ATVI) had a lackluster year as the stock declined by over 30%. Plagued by delays and scandals, the stock does look undervalued at the moment – at least for those who believe in management turnarounds.
Activision Blizzard: A Giant Of The Gaming Industry
An essential internal driver is the King Entertainment division, which appeared only in 2016, and today generates 30% of Activision's revenue and continues to grow. Potentially, with current revenue, a reduction in cash will increase asset turnover from 0.4 to 0.66 and an increase in ROA to 18%. ATVI has a low debt burden; the potential growth of the asset-to-equity ratio to 2 will lead to an increase in ROE by 8 p.p. According to our valuation, the company is trading at a discount to the fair price.
|ATVI||US Entertainment||US Market|
Return vs Industry: ATVI exceeded the US Entertainment industry which returned -33.6% over the past year.
Return vs Market: ATVI underperformed the US Market which returned 4.2% over the past year.
|ATVI Average Weekly Movement||9.4%|
|Entertainment Industry Average Movement||10.8%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.4%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: ATVI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: ATVI's weekly volatility (9%) has been stable over the past year.
About the Company
Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. It develops and distributes content and services on video game consoles, personal computers, and mobile devices, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision and Blizzard products.
Activision Blizzard Fundamentals Summary
|ATVI fundamental statistics|
Is ATVI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ATVI income statement (TTM)|
|Cost of Revenue||US$2.48b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 03, 2022
|Earnings per share (EPS)||3.39|
|Net Profit Margin||29.21%|
How did ATVI perform over the long term?See historical performance and comparison
0.6%Current Dividend Yield
Is Activision Blizzard undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ATVI ($79.12) is trading below our estimate of fair value ($106.51)
Significantly Below Fair Value: ATVI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ATVI is good value based on its PE Ratio (23.3x) compared to the US Entertainment industry average (32x).
PE vs Market: ATVI is poor value based on its PE Ratio (23.3x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: ATVI is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: ATVI is overvalued based on its PB Ratio (3.6x) compared to the US Entertainment industry average (2.1x).
How is Activision Blizzard forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATVI's forecast earnings growth (5.6% per year) is above the savings rate (2%).
Earnings vs Market: ATVI's earnings (5.6% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: ATVI's earnings are forecast to grow, but not significantly.
Revenue vs Market: ATVI's revenue (9.9% per year) is forecast to grow faster than the US market (9.1% per year).
High Growth Revenue: ATVI's revenue (9.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ATVI's Return on Equity is forecast to be low in 3 years time (13.6%).
How has Activision Blizzard performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATVI has high quality earnings.
Growing Profit Margin: ATVI's current net profit margins (29.2%) are higher than last year (28.9%).
Past Earnings Growth Analysis
Earnings Trend: ATVI's earnings have grown significantly by 26.5% per year over the past 5 years.
Accelerating Growth: ATVI's earnings growth over the past year (19.5%) is below its 5-year average (26.5% per year).
Earnings vs Industry: ATVI earnings growth over the past year (19.5%) underperformed the Entertainment industry 19.5%.
Return on Equity
High ROE: ATVI's Return on Equity (15.6%) is considered low.
How is Activision Blizzard's financial position?
Financial Position Analysis
Short Term Liabilities: ATVI's short term assets ($11.2B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: ATVI's short term assets ($11.2B) exceed its long term liabilities ($5.0B).
Debt to Equity History and Analysis
Debt Level: ATVI has more cash than its total debt.
Reducing Debt: ATVI's debt to equity ratio has reduced from 71.9% to 21.3% over the past 5 years.
Debt Coverage: ATVI's debt is well covered by operating cash flow (80.2%).
Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (31.8x coverage).
What is Activision Blizzard current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ATVI's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: ATVI's dividend (0.59%) is low compared to the top 25% of dividend payers in the US market (3.57%).
Stability and Growth of Payments
Stable Dividend: ATVI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: ATVI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: ATVI is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ATVI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bobby Kotick (58 yo)
Mr. Robert A. Kotick, also known as Bobby, has been the Chief Executive Officer at Activision Blizzard, Inc. since February 1991 and served as its President from July 2008 to June 26, 2017. Mr. Kotick is t...
CEO Compensation Analysis
Compensation vs Market: Bobby's total compensation ($USD154.61M) is above average for companies of similar size in the US market ($USD11.47M).
Compensation vs Earnings: Bobby's compensation has increased by more than 20% in the past year.
Experienced Management: ATVI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Experienced Board: ATVI's board of directors are considered experienced (8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Activision Blizzard, Inc.'s employee growth, exchange listings and data sources
- Name: Activision Blizzard, Inc.
- Ticker: ATVI
- Exchange: NasdaqGS
- Founded: NaN
- Industry: Interactive Home Entertainment
- Sector: Media
- Implied Market Cap: US$61.639b
- Shares outstanding: 779.06m
- Website: https://www.activisionblizzard.com
Number of Employees
- Activision Blizzard, Inc.
- 3100 Ocean Park Boulevard
- Santa Monica
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/26 01:01|
|End of Day Share Price||2022/01/25 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.