NasdaqGS:ATVI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Activision Blizzard, Inc., together with its subsidiaries, develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Activision Blizzard's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATVI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

ATVI

1.2%

US Entertainment

2.3%

US Market


1 Year Return

52.7%

ATVI

42.8%

US Entertainment

17.2%

US Market

Return vs Industry: ATVI exceeded the US Entertainment industry which returned 42.6% over the past year.

Return vs Market: ATVI exceeded the US Market which returned 15.8% over the past year.


Shareholder returns

ATVIIndustryMarket
7 Day-2.3%1.2%2.3%
30 Day-2.9%-5.8%-4.6%
90 Day3.5%7.2%7.4%
1 Year53.7%52.7%43.4%42.8%19.8%17.2%
3 Year29.8%27.3%58.9%55.5%37.4%28.3%
5 Year161.9%153.1%105.8%96.8%83.8%63.0%

Price Volatility Vs. Market

How volatile is Activision Blizzard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Activision Blizzard undervalued compared to its fair value and its price relative to the market?

34.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATVI ($80.78) is trading above our estimate of fair value ($57.68)

Significantly Below Fair Value: ATVI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATVI is good value based on its PE Ratio (34.3x) compared to the US Entertainment industry average (34.8x).

PE vs Market: ATVI is poor value based on its PE Ratio (34.3x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ATVI is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: ATVI is overvalued based on its PB Ratio (4.6x) compared to the US Entertainment industry average (4x).


Next Steps

Future Growth

How is Activision Blizzard forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATVI's forecast earnings growth (6% per year) is above the savings rate (2.2%).

Earnings vs Market: ATVI's earnings (6% per year) are forecast to grow slower than the US market (22.8% per year).

High Growth Earnings: ATVI's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATVI's revenue (6.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ATVI's revenue (6.5% 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 (14%).


Next Steps

Past Performance

How has Activision Blizzard performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATVI has high quality earnings.

Growing Profit Margin: ATVI's current net profit margins (25.9%) are higher than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: ATVI's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: ATVI's earnings growth over the past year (5.5%) is below its 5-year average (16% per year).

Earnings vs Industry: ATVI earnings growth over the past year (5.5%) underperformed the Entertainment industry 44.6%.


Return on Equity

High ROE: ATVI's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Activision Blizzard's financial position?


Financial Position Analysis

Short Term Liabilities: ATVI's short term assets ($7.7B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: ATVI's short term assets ($7.7B) exceed its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: ATVI's debt to equity ratio (17.6%) is considered satisfactory.

Reducing Debt: ATVI's debt to equity ratio has reduced from 52.2% to 17.6% over the past 5 years.

Debt Coverage: ATVI's debt is well covered by operating cash flow (89.2%).

Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (65.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Activision Blizzard current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATVI's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: ATVI's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (4.83%).


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Bobby Kotick (57 yo)

29.5yrs

Tenure

US$30,122,896

Compensation

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 ($USD30.12M) is above average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Bobby's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Kotick
CEO & Director29.5yrsUS$30.12m0.31%
$ 194.4m
Dennis Durkin
CFO & President of Emerging Businesses1.67yrsUS$9.51m0.021%
$ 12.8m
Christopher Walther
Chief Legal Officer10.83yrsUS$5.16m0.0024%
$ 1.5m
Claudine Naughton
Chief People Officer1.08yrsUS$4.39mno data
Daniel Alegre
President & COO0.42yrno datano data
Jesse Yang
Senior VP & Chief Accounting Officer0.33yrno data0.00025%
$ 155.9k
Christopher Hickey
Senior Vice President of Investor Relationsno datano datano data
Jeffrey Brown
Chief Compliance Officer & Corporate Secretaryno datano datano data
Helaine Klasky
Chief Communications Officer0.50yrno datano data
David Messinger
Chief Marketing Officer1.08yrsno datano data
Humam Sakhnini
President of King Digital Entertainment1.67yrsUS$2.39mno data
Steven Bornstein
Chairman of eSport Division4.92yrsno datano data

1.4yrs

Average Tenure

51yo

Average Age

Experienced Management: ATVI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Kotick
CEO & Director29.5yrsUS$30.12m0.31%
$ 194.4m
Peter Nolan
Independent Director6.92yrsUS$350.43k0.022%
$ 13.6m
Brian Kelly
Chairman of the Board6.92yrsUS$489.43k0.64%
$ 400.9m
Robert Corti
Independent Director16.75yrsUS$379.43k0.015%
$ 9.3m
Barry Meyer
Independent Director6.67yrsUS$344.93k0.0058%
$ 3.6m
Hendrik Hartong
Independent Director5.17yrsUS$350.43k0.0046%
$ 2.9m
Robert Morgado
Lead Independent Directorno dataUS$459.43k0.0096%
$ 6.0m
Reveta Bowers
Independent Director2.67yrsUS$344.93k0.0012%
$ 742.0k
Casey Wasserman
Independent Director5.17yrsUS$344.93k0.0037%
$ 2.3m
Riccardo Zacconi
Chairman of King Digital Limited1.17yrsUS$19.82m0%
$ 0
Dawn Ostroff
Independent Director0.25yrno datano data

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: ATVI's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATVI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Activision Blizzard, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Activision Blizzard, Inc.
  • Ticker: ATVI
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$62.352b
  • Shares outstanding: 771.87m
  • Website: https://www.activisionblizzard.com

Number of Employees


Location

  • Activision Blizzard, Inc.
  • 3100 Ocean Park Boulevard
  • Santa Monica
  • California
  • 90405
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZTXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1983
ATVINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1983
AIYDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1983
ATVI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1983
AIYSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1983
ATVIWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1983
0H8XLSE (London Stock Exchange)YesCommon StockGBUSDJun 1983
AIYETLX (Eurotlx)YesCommon StockITEURJun 1983
ATVI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.000001BRBRLMay 2019

Biography

Activision Blizzard, Inc., together with its subsidiaries, develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices in the Americas, Europe, the Mid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 23:43
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.