ATVI  Activision Blizzard Inc

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

47.14B

Vuru Grade

72.81/100

Current Price

$62.44
+0.45 (+0.73%)

Growth Price

$41.86
Overvalued by 32.97%

Stability Price

$14.96
Overvalued by 76.04%

Company Metrics

  • P/E 42.16
  • P/S 6.74
  • P/B 4.82
  • EPS 1.48
  • Cash ROIC 15.67%
  • Cash Ratio 1.22
  • Dividend 0.3 / 0.49%
  • Avg. Vol. 5.78M
  • Shares 754.96M
  • Market Cap. 47.14B

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

Jim Cramer Advises His Viewers On Activision Blizzard, Priceline And More
Benzinga - 6 hours ago
On CNBC's "Mad Money Lightning Round", Jim Cramer said he would buy Activision Blizzard, Inc. (NASDAQ: ATVI), because it is going to be the king of eSports.
Activision Blizzard, Inc (NASDAQ:ATVI) Holdings Cut by Sterling Capital ... - The Ledger Gazette
3 Reasons Activision Blizzard Inc. Is a Better Growth Stock Than Take Two ...
Motley Fool - Sep 25, 2017
Activision Blizzard (NASDAQ:ATVI) is currently the fourth best-performing stock on the S&P 500 -- up almost 80% so far this year.
Why I Like Activision - Seeking Alpha
Activision Blizzard Inc (ATVI) Dips 2.75% for September 25 - Equities.com
Why Activision Is Now Expanding To Social Casino Games
Seeking Alpha - Oct 9, 2017
... genre is clearly a fast-growing opportunity for Activision Blizzard (ATVI). Look at the chart provided below by Eilers & Krejcik Gaming, LLC.
Activision Portfolio Update
Seeking Alpha - Oct 12, 2017
In a recent article we demonstrated that our security selection method generates alpha: our top names each week from June 8th to August 3rd have beaten the market so far.
Why to Keeping Eye on The Progressive Corporation (PGR), Activision Blizzard ... - StockNewsJournal
Analyst Stance On Two Stocks: Geron Corporation (GERN), Activision Blizzard ... - Post Analyst
Activision Blizzard Inc (ATVI) Dips 3.27% for October 09
Equities.com - Oct 9, 2017
Among the S&P 500's biggest fallers on Monday October 09 was Activision Blizzard Inc (ATVI). The stock experienced a 3.27% decline to $61.18 with 8.73 million shares changing hands.
3 Big Stock Charts for Monday: Activision Blizzard, Inc. (ATVI), Netflix, Inc ... - Investorplace.com
Looking Forward To BlizzCon? Here's What You Need To Know - Benzinga
Can eSports Power Activision Blizzard, Inc. (ATVI) Stock to New Highs?
Investorplace.com - Oct 11, 2017
The red-hot video gaming sector has cooled off recently after a long-term bullish analyst suddenly turned bearish, saying that Activision Blizzard, Inc. (NASDAQ:ATVI) and Take Two Interactive Software Inc (NASDAQ:TTWO) overshot themselves. For context ...
Revenue Approximations Analysis: Activision Blizzard, Inc. (ATVI), VF ... - StockNewsJournal
Analysts Opinions on: Activision Blizzard, Inc. (ATVI) - FactsReporter
USA Financial Portformulas Corp Buys Visa Inc, Activision Blizzard Inc ...
Nasdaq - Oct 12, 2017
USA Financial Portformulas Corp initiated holdings in Activision Blizzard Inc. The purchase prices were between $56.26 and $66.16, with an estimated average price of $62.34.
What Lies Ahead For Vitamin Shoppe, Inc. (VSI) And Activision Blizzard, Inc ...
Post Analyst - 5 hours ago
Vitamin Shoppe, Inc. (NYSE:VSI) traded at an unexpectedly low level on 10/19/2017 when the stock experienced a 2.86% gain to a closing price of $5.4.
After Hitting Support, Activision Blizzard Receives A 'Hold' Rating From Vetr
Benzinga - Sep 28, 2017
The Vetr crowd on Thursday downgraded its rating on Activision Blizzard, Inc (NASDAQ: ATVI) from the stock's previous rating of 3.5 stars (Buy), issued two days ago, to 3 stars (Hold).
It's Far Too Soon To Give Up On Activision Blizzard, Inc. (ATVI), NMI Holdings ... - Post Analyst
Activision Blizzard, Inc. (ATVI): Scrutinizing the Chart - Economic News
What the Numbers Say About Activision Blizzard, Inc. (ATVI) and Take-Two ...
Economic News - Oct 18, 2017
Activision Blizzard, Inc. (NASDAQ:ATVI) and Take-Two Interactive Software, Inc. (NASDAQ:TTWO) are both Technology companies that recently hit new highs.
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.

$62.44 Current Price

$41.86 Growth Price (DCF)

Overvalued by 32.97%


Growth Rate Assumed by Market: 26.17%


Future Free Cash Flow Growth Rate: 13.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$14.96 Stability Price (EPV)

Overvalued by 76.04%


Discount Rate: 15.0%

$33.45 Book Price

Overvalued by 46.43%


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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