Activision Blizzard Inc

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ATVI : NASDAQ : Technology
$49.12 | %
Today's Range: 48.74 - 49.405
Avg. Daily Volume: 8392200.0
03/24/17 - 4:00 PM ET

Financial Analysis

ACTIVISION BLIZZARD INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. ACTIVISION BLIZZARD INC has average liquidity. Currently, the Quick Ratio is 1.50 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.02% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2014.01352.0
EBITDA ($mil)735.0382.0
EBIT ($mil)429.0254.0
Net Income ($mil)253.0159.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3245.01831.0
Total Assets ($mil)17452.015251.0
Total Debt ($mil)4887.04079.0
Equity ($mil)9119.08068.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin76.6669.67
EBITDA Margin36.4928.25
Operating Margin21.318.79
Sales Turnover0.380.31
Return on Assets5.535.84
Return on Equity10.5911.05
Debt Q4 FY16 Q4 FY15
Current Ratio1.821.3
Interest Expense53.050.0
Interest Coverage8.095.08

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)745.49734.5
Div / share0.00.0
Book value / share12.2310.98
Institutional Own % n/a n/a
Avg Daily Volume8256438.08567763.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 55.43 for the Software industry and a significant premium compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 3.99 indicates a premium versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 8.41. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ATVI 38.41 Peers 55.43   ATVI 16.87 Peers 21.92

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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ATVI 20.80 Peers 33.36   ATVI 0.77 Peers 0.83

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 discount to its peers.


Average. 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 trades at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATVI 3.99 Peers 8.41   ATVI 5.83 Peers 43.15

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.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ATVI is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ATVI 5.50 Peers 6.32   ATVI 41.68 Peers 7.57

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 discount to its industry on this measurement.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ATVI has a sales growth rate that significantly exceeds its peers.



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