Fundamental Analysis
Headquartered in Santa Monica, California, Activision Blizzard, Inc., is the world’s most successful standalone interactive entertainment company. Our portfolio includes some of the strongest franchises in all of entertainment, developed by the incredibly talented teams at Activision Publishing, Blizzard Entertainment, King Digital Entertainment, Activision Blizzard Studios, Major League Gaming, and our independent studios, including Toys for Bob, Infinity Ward, Sledgehammer Games and Treyarch. Our entertainment network has nearly 500 million monthly active users in 196 countries, and we’re continuing to expand our capabilities across new platforms, genres, audiences and geographies. We’re proud to be one of FORTUNE’s “100 Best Companies To Work For®” and our 9,000+ employees are some of the best and brightest talents across entertainment, media and technology.
Activision Blizzard has five operating units:
Activision develops, distributes, and publishes deeply immersive interactive entertainment for gaming consoles, mobile and tablet platforms, and PCs, including blockbuster franchises like Call of Duty®, Skylanders® and Destiny®.
Blizzard Entertainment develops, distributes and publishes some of the most iconic entertainment experiences in gaming, such as World of Warcraft®, StarCraft®, Diablo®, Hearthstone®, and Heroes of the Storm™, for PCs, mobile and tablet platforms, and consoles.
King Digital Entertainment creates leading interactive entertainment for the mobile world. With more than 200 fun titles, King’s franchises include Candy Crush ®, Farm Heroes®, Pet Rescue®, and Bubble Witch®.
Major League Gaming builds on Activision Blizzard’s competitive gaming leadership by creating all-new ways to deliver best-in-class fan experiences across games, platforms and geographies.
Activision Blizzard Studios makes original film and television content based on our library of iconic and globally-recognized intellectual properties.
Reasons to buy – Activision Blizzard
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see Activision Blizzard makes a margin of 30% on Operating Level and about 25% on Net level. This means that out of $1 that it makes $0.25 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 14% in the revenue and the net profit figures grew by 17%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see Activision Blizzard makes a Return on Assets of 11% and Return of Equity of 20% which is pretty good.
Given our addiction to whiling away our time on online games whenever we are on our laptops, mobile phones and tablets for children, adults, and core games this is a company giving us the thing that everyone is after. Profits is what I meant.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by Activision Blizzard to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
