0.07 | 0.45%
ACTIVISION BLIZZARD INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ACTIVISION BLIZZARD INC is extremely liquid. Currently, the Quick Ratio is 2.56 which clearly shows the ability to cover any short-term cash needs. ATVI managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 1324.0 | 1172.0 |
| EBITDA ($mil) | 673.0 | 567.0 |
| EBIT ($mil) | 587.0 | 513.0 |
| Net Income ($mil) | 456.0 | 384.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 4618.0 | 3476.0 |
| Total Assets ($mil) | 13725.0 | 12482.0 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 11535.0 | 10486.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 75.08 | 73.55 |
| EBITDA Margin | 50.83 | 48.37 |
| Operating Margin | 44.34 | 43.77 |
| Sales Turnover | 0.36 | 0.36 |
| Return on Assets | 8.89 | 7.73 |
| Return on Equity | 10.58 | 9.21 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 3.06 | 2.57 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 1116.91 | 1114.12 |
| Div / share | 0.19 | 0.18 |
| EPS | 0.4 | 0.33 |
| Book value / share | 10.33 | 9.41 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 7336406.0 | 9410648.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 27.69 for the Software industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.44 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 7.07. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, ACTIVISION BLIZZARD INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ATVI 13.89 | Peers 27.69 | ATVI 10.90 | Peers 20.11 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ATVI is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ATVI is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| ATVI 14.86 | Peers 24.71 | ATVI NM | Peers 0.76 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ATVI is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ATVI's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| ATVI 1.44 | Peers 7.07 | ATVI 28.91 | Peers -92.79 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ATVI is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ATVI is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| ATVI 3.31 | Peers 8.67 | ATVI 11.83 | Peers 16.46 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ATVI is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. ATVI significantly trails its peers on the basis of sales growth |
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