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Fundamental analysis: Activision Blizzard, Inc. (ATVI)

Awarener score: 5.6

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.0

• Business has been shrinking. It's been below average when measured against peer companies.
• Activision Blizzard, Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks somewhat worse than rivals.

Margins score: 9.2

• ATVI profit margins -on goods and services sold- are usually excellent. They stand slightly better than rival companies.
• Business profit on sales tends to be huge. It's top tier when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain impressive in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
• Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 3.3

• Activision Blizzard, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
• In recent years, earnings -on operations- have been growing at a very low step, which has been mediocre against comparable firms.
• Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- grew at a very low speed. It was mediocre against rivals.
• In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
• Earnings per share have been almost stagnant in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 6.0

• ATVI managed to pay little to no income taxes on profits made in the past years. It's been somewhat worse than peers.
• Research and development expenses consume a moderate portion of revenues. It's below average when measured against competitors.
• The company grows very little in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 9.0

• Activision Blizzard, Inc. usually gets excellent returns on the resources it controls. It proves encouraging in relation to peer firms.
• The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
• There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
• In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 6.6

• ATVI usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands more than average in relation to rival firms.
• The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is substantially worse when measured against industry peers.
• In the past twelve months it paid low dividends, considering the current stock price. It came worse than most competitors.
• Has recently started or restarted paying dividends to stockholders. Business prospects are most likely good. The company has behaved impressive in relation to similar firms.
• Dividend payments usually represent a non-significant portion of genuine funds generation and are likely very safe. Sustainability looks somewhat worse than comparable companies.
• The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.9

• Activision Blizzard, Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
• The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be rather normal in relation to similar firms.
• A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat worse than rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks almost average when measured against rivals.
• For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's close to average when compared to peer firms.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is slightly better than similar enterprises.
• Usually, sales are on a month credit. It still ranks below average when measured against peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes approximately two months from the purchase to charging customers. It happens to be somewhat worse than peers.
• On average pays suppliers before a month since the purchase. It ranks below average when measured against industry peers.
• The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's lacking compared to similar companies.
• Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands somewhat worse than rival firms.
• Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
• Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 5.2

• Activision Blizzard, Inc. looks expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly better than similar companies.
• The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
• In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up lacking compared to peer ventures.
• The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks a disappointment compared to rival firms.
• The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
• In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be similar to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 6.3

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Awarener score: 5.6

Conclusion

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