ATVI  Activision Blizzard Inc

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

39.28B

Vuru Grade

72.81/100

Current Price

$52.25
+0.34 (+0.65%)

Growth Price

$42.03
Overvalued by 19.55%

Stability Price

$15.02
Overvalued by 71.25%

Company Metrics

  • P/E 40.82
  • P/S 5.91
  • P/B 4.24
  • EPS 1.28
  • Cash ROIC 15.67%
  • Cash Ratio 1.22
  • Dividend 0.30 / 0.58 %
  • Avg. Vol. 7.85M
  • Shares 751.77M
  • Market Cap. 39.28B

Company Description

Activision Blizzard, Inc., through its subsidiaries, publishes online, personal computer (PC), console, and handheld games worldwide. The company develops and publishes PC-based computer games and maintains its proprietary online-game related service, Battle.net. It publishes interactive software products and peripherals. Its products cover various game categories, such as action/adventure, action... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Activision Blizzard, Inc. Stock Popped 10.5% in March
Motley Fool - Apr 11, 2017
Shares of Activision Blizzard Inc. (NASDAQ:ATVI) jumped 10.5% in March, according to data from S&P Global Market Intelligence, with multiple analyst upgrades helping to sustain its momentum after a strong fourth-quarter 2016 report in February.
What is the intrinsic value of Activision Blizzard Inc (ATVI) - Simply Wall St
Activision Blizzard, Inc. Posted gains of 0.08% in the Last Trade - Free Observer
Game On: Activision Blizzard On The Rise
Seeking Alpha - Apr 21, 2017
Activision Blizzard (NASDAQ:ATVI) represents another niche opportunity within a tech space that is so often dominated by brands like Snapchat (NYSE:SNAP) and Facebook (NASDAQ:FB).
Activision Blizzard: The Fun Continues
Seeking Alpha - Apr 19, 2017
The use of a microtransaction model in free to play games such as Hearthstone and Candy Crush Saga has propelled earnings to new levels as of late.
Activision Blizzard, Inc. (ATVI): Essential Chart Information
NY Stock News - Apr 28, 2017
Activision Blizzard, Inc. (ATVI) has presented a rich pool of technical data in recent sessions. These are the trends we've been tracking and how we feel they should be played in the current environment.
There Is More to Activision Blizzard's King Acquisition Than Meets the Eye
Motley Fool - Apr 26, 2017
At the time the King acquisition was completed, Activision Blizzard CEO Bobby Kotick said, "We see great opportunities to create new ways for audiences to experience their favorite franchises, from Candy Crush to World of Warcraft to Call of Duty and ...
Watch List Activision Blizzard, Inc. (NASDAQ:ATVI), Nucor Corporation (NYSE:NUE)
Alive For Football - 21 hours ago
Rathbone Brothers Plc acquired 126,536 shares as Activision Blizzard Inc Usd0.000001 Common Stock (ATVI)'s stock declined 18.12%.
Activision Blizzard, Inc. (ATVI) Hits New 1-Year High After Analyst Upgrade - Normangee Star
Digging Up the Facts on Activision Blizzard, Inc. (ATVI) - pppFocus
Activision Blizzard Reaches Analyst Target Price
Nasdaq - Apr 21, 2017
In recent trading, shares of Activision Blizzard, Inc. (Symbol: ATVI) have crossed above the average analyst 12-month target price of $49.43, changing hands for $49.95/share.
Technical Tracker: Watching Shares of Activision Blizzard Inc (ATVI)
Searcy News - 6 hours ago
Investors have the ability to employ technical indicators when undertaking stock research. At the time of writing, Activision Blizzard Inc (ATVI) has a 14-day Commodity Channel Index (CCI) of 129.72. Developed by Donald Lambert, the CCI is a versatile ...
The Markets Are Undervaluing these stock's: Square (SQ), Activision Blizzard ...
StockNewsJournal - Apr 27, 2017
Square (NYSE:SQ) market capitalization at present is $6.45B at the rate of $18.08 a share. The firm's price-to-sales ratio was noted 3.92 in contrast with an overall industry average of 321.31.
Activision Blizzard, Inc. Posted gains of 0% in the Last Trade
Free Observer - Apr 26, 2017
If you look at the company's income statement over the past years, you will see that the company is constantly posting gross profit: In 2014, ATVI earned gross profit of 2.88 Billion, in 2015 3.08 Billion gross profit, while in 2016 Activision Blizzard ...
Short Interest in Activision Blizzard, Inc. (ATVI) Drops By 21.7% - The Cerbat Gem
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ATVI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ATVI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$52.25 Current Price

$42.03 Growth Price (DCF)

Overvalued by 19.55%


Growth Rate Assumed by Market: 20.68%


Future Free Cash Flow Growth Rate: 13.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$15.02 Stability Price (EPV)

Overvalued by 71.25%


Discount Rate: 15.0%

$33.36 Book Price

Overvalued by 36.15%


Excellent Cash Return on Invested Capital over the past 5 years

ATVI has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

ATVI has created $15.67 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 1.27B 1.19B 1.19B 1.08B 2.02B
divided by
Invested Capital 7.17B 7.16B 7.17B 10.81B 11.55B
Cash ROIC 17.73% 16.61% 16.52% 10.00% 17.48%

Satisfactory Return on Equity over the past 5 years

ATVI has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

ATVI has generated $11.72 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 1.15B 1.01B 835.00M 892.00M 966.00M
divided by
Stockholders' Equity 11.32B 6.62B 7.23B 8.07B 9.12B
Return on Equity 10.15% 15.25% 11.54% 11.06% 10.59%

Excellent Business Performance over the past 10 years

ATVI has been able to maintain profitability in good times and bad. This could mean ATVI has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

ATVI has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 9.23M 544.10M 1.11B 1.28B 880.00M 1.27B 1.19B 1.19B 1.08B 2.02B

Strong Balance Sheet

ATVI is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 954.85M 1.45B 3.25B 3.51B 3.53B 4.38B 4.44B 4.86B 1.83B 3.25B
Current Assets 1.40B 1.98B 5.33B 5.39B 5.38B 6.27B 6.24B 6.91B 3.39B 4.83B
Total Assets 1.79B 2.53B 13.74B 13.41B 13.28B 14.20B 14.01B 14.75B 15.25B 17.45B
Current Liabilities 341.17M 556.07M 2.51B 2.91B 2.56B 2.65B 2.41B 2.71B 2.61B 2.66B
Total Liabilities 382.42M 582.78M 2.99B 3.20B 2.79B 2.88B 7.39B 7.51B 7.18B 8.33B
Stockholder' Equity 1.41B 1.95B 10.76B 10.20B 10.49B 11.32B 6.62B 7.23B 8.07B 9.12B
Current Ratio 4.11 3.56 2.13 1.85 2.10 2.37 2.60 2.55 1.30 1.82
TL-to-TA 0.21 0.23 0.22 0.24 0.21 0.20 0.53 0.51 0.47 0.48

Consistent Reinvestment of Profits over the past 10 years

ATVI has consistently retained profits. This may put ATVI in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ATVI can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 427.78M 772.66M -361.00M 57.00M 948.00M 1.89B 2.69B 3.37B 4.10B 4.87B
Retained Earnings Growth - 80.62% -146.72% 115.79% 1,563.16% 99.68% 41.89% 25.61% 21.40% 18.87%

Inconsistent Net Profit Margins over the past 10 years

ATVI potentially has a competitive advantage, however inconsistent profit margins are a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$15.08 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 85.79M 344.88M 113.00M 418.00M 1.09B 1.15B 1.01B 835.00M 892.00M 966.00M
divided by
Revenue 1.51B 2.90B 4.28B 4.45B 4.76B 4.86B 4.58B 4.41B 4.66B 6.61B
Net Profit Margin 5.67% 11.90% 2.64% 9.40% 22.82% 23.66% 22.04% 18.94% 19.13% 14.62%

Strong Pricing Power over the past 10 years

ATVI has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$59.08 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 534.95M 1.25B 1.97B 2.32B 4.11B 3.19B 3.05B 2.88B 3.08B 4.21B
divided by
Revenue 1.51B 2.90B 4.28B 4.45B 4.76B 4.86B 4.58B 4.41B 4.66B 6.61B
Gross Margin 35.36% 43.22% 46.09% 52.19% 86.41% 65.77% 66.59% 65.40% 66.02% 63.77%

Low Capital Intensity over the past 10 years

ATVI has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that ATVI may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

17.34% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 17.94M 29.40M 69.00M 97.00M 72.00M 73.00M 74.00M 107.00M 111.00M 136.00M
divided by
Net Income 85.79M 344.88M 113.00M 418.00M 1.09B 1.15B 1.01B 835.00M 892.00M 966.00M
Capital Expenditure Ratio 20.91% 8.52% 61.06% 23.21% 6.64% 6.35% 7.33% 12.81% 12.44% 14.08%

No Dividend History over the past 10 years

ATVI has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 610.68M 629.46M 1.31B 1.24B 1.16B 1.12B 1.04B 726.00M 739.00M 754.00M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 14.22 8.30 11.07 12.38 12.32 10.56 17.80 20.24 39.43 36.11
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

ATVI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 610.68M 629.46M 1.31B 1.24B 1.16B 1.12B 1.04B 726.00M 739.00M 754.00M
Stock Bought Back - -2.98% -51.99% 6.07% 6.92% 3.40% 8.02% 42.56% -1.76% -1.99%
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