ATVI  Activision Blizzard Inc

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

43.93B

Vuru Grade

72.81/100

Current Price

$58.29
-1.93 (-3.20%)

Growth Price

$41.93
Overvalued by 28.07%

Stability Price

$14.98
Overvalued by 74.29%

Company Metrics

  • P/E 42.77
  • P/S 6.60
  • P/B 4.81
  • EPS 1.36
  • Cash ROIC 15.67%
  • Cash Ratio 1.22
  • Dividend 0.30 / 0.50 %
  • Avg. Vol. 6.39M
  • Shares 753.65M
  • Market Cap. 43.93B

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

Is Activision Blizzard Stock Overvalued?
Motley Fool - 17 hours ago
Activision Blizzard (NASDAQ:ATVI) stock is up 50% over the last year and more than 350% over the last five years. This raises the question of whether the stock has risen too far, too fast.
Activision Blizzard Inc (ATVI) Dips 3.2% for June 27 - Equities.com
Activision Blizzard, Inc. (NasdaqGS:ATVI) Shareholder Yield in Focus - Financial Newsweek
Vetr Downgrades Activision Blizzard Following Announcement of 'Destiny 2'
Benzinga - Jun 14, 2017
The Vetr community is bearish on Activision Blizzard, Inc. (NASDAQ: ATVI) despite the company's shares trading up over 16 percent over the past three months entering Wednesday's open.
Activision Blizzard, Inc (ATVI) Position Reduced by Advisors Asset Management Inc. - The Cerbat Gem
Activision Blizzard INC Usd0.000001 Common Stock (ATVI) Position Has Increased ... - Weekly Register
Activision Blizzard: The Pullback Is On Its Way
Seeking Alpha - Jun 7, 2017
In addition, lack of cash, despite growing revenue, and unattractive dividend policy for us are the main reasons, why Activision couldn't be viewed as a long-term investment. At the moment, we don't see any catalysts for growth and decided to open up a ...
Activision Blizzard's Games Have Diverse Characters—Can it Attract Diverse ... - Fortune
Activision Blizzard, Inc. (ATVI) And Its Technicals Provide Timely Picture - NY Stock News
Activision Blizzard Hits 52-Week High: What's Driving it?
Nasdaq - Jun 23, 2017
Shares of Activision Blizzard, Inc. ATVI scaled a new 52-week high of $61.58 during yesterday's trading session.
Why 'Overwatch' Is Activision Blizzard's Most Important Game - Investor's Business Daily
Risk Malaise Alert in Option Market: Activision Blizzard, Inc Implied Price ... - CML News
Price Alert: Activision Blizzard, Inc (NASDAQ:ATVI) Stock Nears Resistance ...
CML News - 7 hours ago
Price Alert: Activision Blizzard, Inc (NASDAQ:ATVI) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Activision Blizzard at E3 2017: What Investors Need to Know
Motley Fool - Jun 22, 2017
Activision Blizzard (NASDAQ:ATVI) didn't have a huge presence at this year's Electronic Entertainment Expo (E3), opting not to put on its own press conference or announce any new games.
Buy Calls on Activision Blizzard, Electronic Arts Stocks Right Now - Schaeffers Research (blog)
Buy or Sell? What Analysts Recommends: Synchrony Financial (SYF), Activision ... - StockNewsJournal
Activision, EA get higher targets from Mizuho after E3
Seeking Alpha - Jun 19, 2017
Positivity continues to roll in for big videogame makers after E3, with Activision Blizzard (ATVI +2.6%) and Electronic Arts (EA +2.8%) getting new higher price targets from Mizuho.
Two sizzlers stock's are not to be missed: Activision Blizzard, Inc. (ATVI ... - StockNewsJournal
Activision Blizzard, Inc. (ATVI) is up on 100 DMA - NY Stock News
The Technicals For Activision Blizzard (ATVI) Tell An Interesting Tale
NY Stock News - 21 hours ago
The technicals for Activision Blizzard, Inc. (ATVI) have taken shape, and with them a comprehensive picture has emerged.
Activision Blizzard: A New Way To Make Money On Destiny 2
Seeking Alpha - May 31, 2017
The first thing is the fact, that Destiny 2 will be the first non-Blizzard game released on Battle.net-Blizzard Launcher.
Activision Blizzard Extends Exchange Offer with Respect to Certain of Its ... - Business Wire (press release)
Activision Blizzard, Inc. (ATVI) Exposed Via Its Technical Chart - NY Stock News
Why Investors Should Pay Attention To Activision Blizzard
Motley Fool - Jun 1, 2017
The gaming industry is crushing it this year, and Activision Blizzard (NASDAQ:ATVI), the company behind huge franchises like OverWatch, World of Warcraft, and Candy Crush, is one of the biggest and best-performing players in the space.
Activision Blizzard, Inc Risk Points versus Consumer Discretionary - CML News
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.

$58.29 Current Price

$41.93 Growth Price (DCF)

Overvalued by 28.07%


Growth Rate Assumed by Market: 24.08%


Future Free Cash Flow Growth Rate: 13.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$14.98 Stability Price (EPV)

Overvalued by 74.29%


Discount Rate: 15.0%

$33.45 Book Price

Overvalued by 42.61%


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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