NasdaqGS:ATVI

Stock Analysis Report

Executive Summary

Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices.

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

-1.1%

ATVI

0.5%

US Entertainment

1.0%

US Market


1 Year Return

-27.6%

ATVI

1.3%

US Entertainment

6.7%

US Market

Return vs Industry: ATVI underperformed the US Entertainment industry which returned 1.3% over the past year.

Return vs Market: ATVI underperformed the US Market which returned 6.7% over the past year.


Share holder returns

ATVIIndustryMarket
7 Day-1.1%0.5%1.0%
30 Day-2.0%-4.3%-1.8%
90 Day16.7%-9.0%-1.8%
1 Year-27.0%-27.6%2.0%1.3%9.1%6.7%
3 Year28.4%25.9%59.8%54.6%46.1%36.6%
5 Year201.6%190.5%96.3%84.1%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

24.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ATVI ($54.82) is trading above our estimate of fair value ($48.9)

Significantly Undervalued: ATVI is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ATVI is good value based on its PE Ratio (24.9x) compared to the Entertainment industry average (40.7x).

PE vs Market: ATVI is poor value based on its PE Ratio (24.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ATVI is poor value based on its PEG Ratio (1.8x)


Price Based on Value of Assets

PB vs Industry: ATVI is overvalued based on its PB Ratio (3.5x) compared to the US Entertainment industry average (2.8x).


Next Steps

Future Growth

How is Activision Blizzard expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ATVI's forecast earnings growth (13.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ATVI's earnings (13.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ATVI's revenue (7.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ATVI's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ATVI's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Activision Blizzard performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ATVI's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: ATVI's earnings growth over the past year (233%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: ATVI earnings growth over the past year (233%) exceeded the Entertainment industry 31.1%.


Return on Equity

High ROE: ATVI's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: ATVI has a higher Return on Assets than the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: ATVI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Activision Blizzard's financial position?


Financial Position Analysis

Short Term Liabilities: ATVI's short term assets ($5.7B) exceeds its short term liabilities ($1.6B)

Long Term Liabilities: ATVI's short term assets (5.7B) exceeds its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: ATVI's debt to equity ratio (22.3%) is considered satisfactory

Reducing Debt: ATVI's debt to equity ratio has reduced from 60.3% to 22.3% over the past 5 years.

Debt Coverage: ATVI's debt is well covered by operating cash flow (69.4%).

Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (69.8x coverage).


Balance Sheet

Inventory Level: ATVI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATVI's debt is covered by short term assets (assets are 2.118590x debt).


Next Steps

  • Explore more healthy companies in the Media industry.

Dividend

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

0.71%

Expected Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Years0.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ATVI's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ATVI's dividend (0.67%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 .


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

What is the CEO of Activision Blizzard's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Bobby Kotick (56yo)

28.7yrs

Tenure

US$30,841,004

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 ($USD30.84M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: ATVI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

6.0yrs

Average Tenure

58yo

Average Age

Experienced Board: ATVI's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: ATVI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$438,66015 Aug 19
Stephen Wereb
EntityIndividual
Role
Chief Accounting Officer
Deputy CFO
Shares9,144
Max PriceUS$47.97
BuyUS$4,295,47014 Mar 19
Peter Nolan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$42.95
BuyUS$7,80215 Feb 19
Dennis Durkin
EntityIndividual
Role
Chief Financial Officer
CFO & President of Emerging Businesses
Shares120
Max PriceUS$81.48
SellUS$12,97515 Feb 19
Dennis Durkin
EntityIndividual
Role
Chief Financial Officer
CFO & President of Emerging Businesses
Shares240
Max PriceUS$70.57

Ownership Breakdown


Management Team

  • Bobby Kotick (56yo)

    CEO & Director

    • Tenure: 28.7yrs
    • Compensation: US$30.84m
  • Dennis Durkin (48yo)

    CFO & President of Emerging Businesses

    • Tenure: 0.8yrs
    • Compensation: US$5.80m
  • Chris Walther (52yo)

    Chief Legal Officer

    • Tenure: 9.9yrs
    • Compensation: US$4.76m
  • Chris Hickey

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Stephen Wereb (54yo)

    Deputy CFO

    • Tenure: 9yrs
  • Brian Stolz (45yo)

    Special Advisor to CEO

    • Tenure: 0.2yrs
    • Compensation: US$3.53m
  • Jeffrey Brown

    Chief Compliance Officer & Corporate Secretary

    • Tenure: 0yrs
  • Coddy Johnson (42yo)

    President & COO

    • Tenure: 2.3yrs
    • Compensation: US$8.17m
  • Kristin Binns

    Senior VP & Chief Communications Officer

    • Tenure: 1.3yrs
  • David Messinger

    Chief Marketing Officer

    • Tenure: 0.2yrs

Board Members

  • Peter Nolan (60yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$347.96k
  • Bobby Kotick (56yo)

    CEO & Director

    • Tenure: 28.7yrs
    • Compensation: US$30.84m
  • Brian Kelly (56yo)

    Chairman of the Board

    • Tenure: 6yrs
    • Compensation: US$489.71k
  • Robert Corti (69yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$379.71k
  • Barry Meyer (75yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$345.21k
  • Henk Hartong (52yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$350.71k
  • Robert Morgado (76yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$448.55k
  • Elaine Wynn (76yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$345.21k
  • Casey Wasserman (44yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$345.21k
  • Riccardo Zacconi (52yo)

    Chairman of King Digital Limited

    • Tenure: 0.3yrs
    • Compensation: US$19.82m

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$42.048b
  • Shares outstanding: 767.03m
  • 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
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
ATVI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.000001BRBRLMay 2019

Biography

Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:23
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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