Electronic Arts, Inc.

  • Market Cap: Large Cap
  • Industry: Software Products
  • ISIN: US2855121099
USD
203.52
0.55 (0.27%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
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Electronic Arts, Inc.
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Roper Technologies, Inc.
Shopify, Inc.
The Trade Desk, Inc.
Palo Alto Networks, Inc.
Synopsys, Inc.
VMware, Inc.

Why is Electronic Arts, Inc. ?

1
High Management Efficiency with a high ROE of 14.25%
2
The company is Net-Debt Free
3
With a growth in Net Profit of 423.86%, the company declared Very Positive results in Mar 26
  • OPERATING CASH FLOW(Y) Highest at USD 2,553 MM
  • INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
  • RAW MATERIAL COST(Y) Fallen by -3.33% (YoY)
4
High Institutional Holdings at 100%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Electronic Arts, Inc. should be less than 10%
  2. Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Electronic Arts, Inc. for you?

Low Risk, High Return

Absolute
Risk Adjusted
Volatility
Electronic Arts, Inc.
31.8%
2.36
20.98%
S&P 500
22.24%
1.67
13.28%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.24%
EBIT Growth (5y)
-3.99%
EBIT to Interest (avg)
24.45
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
0.83
Tax Ratio
30.16%
Dividend Payout Ratio
17.90%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
24.27%
ROE (avg)
14.25%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
8.22
EV to EBIT
47.70
EV to EBITDA
36.53
EV to Capital Employed
9.53
EV to Sales
6.78
PEG Ratio
NA
Dividend Yield
40.73%
ROCE (Latest)
19.99%
ROE (Latest)
11.55%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 2,553 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -3.33% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -16.65 %

NET SALES(Q)

Highest at USD 2,140 MM

OPERATING PROFIT(Q)

Highest at USD 676 MM

OPERATING PROFIT MARGIN(Q)

Highest at 31.59 %

PRE-TAX PROFIT(Q)

Highest at USD 585 MM

NET PROFIT(Q)

Highest at USD 465.78 MM

EPS(Q)

Highest at USD 1.81

0What is not working for the Company
NO KEY NEGATIVE TRIGGERS

Here's what is working for Electronic Arts, Inc.

Net Profit
At USD 465.78 MM has Grown at 162.25%
over average net sales of the previous four periods of USD 177.61 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit
At USD 585 MM has Grown at 122.01%
over average net sales of the previous four periods of USD 263.5 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Operating Cash Flow
Highest at USD 2,553 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales
Highest at USD 2,140 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Net Sales
At USD 2,140 MM has Grown at 17%
over average net sales of the previous four periods of USD 1,829 MM
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Operating Profit
Highest at USD 676 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin
Highest at 31.59 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at USD 585 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 465.78 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 1.81
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio
Lowest at -16.65 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost
Fallen by -3.33% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation
Highest at USD 86 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)