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Electronic Arts, Inc.

  • Market Cap: Mid Cap
  • Industry: Software Products
  • ISIN: US2855121099
USD
203.44
0.2 (0.1%)

Dec 04

NAS

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  • 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

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Cadence Design Systems, Inc.
Roper Technologies, Inc.
Autodesk, Inc.
Palo Alto Networks, Inc.
The Trade Desk, Inc.
Shopify, Inc.
Snowflake, Inc.
Synopsys, Inc.
CrowdStrike Holdings, Inc.
Electronic Arts, Inc.
VMware, Inc.
Why is Electronic Arts, Inc. ?
1
Poor long term growth as Operating profit has grown by an annual rate 0.84% of over the last 5 years
2
With a fall in Net Sales of -11.42%, the company declared Very Negative results in Jun 25
  • OPERATING CASH FLOW(Y) Lowest at USD 1,976 MM
  • INTEREST COVERAGE RATIO(Q) Lowest at 2,478.57
  • CASH AND EQV(HY) Lowest at USD 3,878 MM
3
With ROE of 18.13%, it has a expensive valuation with a 5.87 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 22.86%, its profits have fallen by -14.6%
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Electronic Arts, Inc. for you?

Medium Risk, High Return

Absolute
Risk Adjusted
Volatility
Electronic Arts, Inc.
21.31%
1.45
33.04%
S&P 500
13.22%
0.61
20.17%
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)
5.45%
EBIT Growth (5y)
0.84%
EBIT to Interest (avg)
24.45
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
0.81
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
32
Industry P/E
Price to Book Value
5.87
EV to EBIT
23.10
EV to EBITDA
18.91
EV to Capital Employed
6.11
EV to Sales
5.00
PEG Ratio
NA
Dividend Yield
54.89%
ROCE (Latest)
26.46%
ROE (Latest)
18.13%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

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

2What is working for the Company
RAW MATERIAL COST(Y)

Fallen by 0.99% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 15.45 times

-15What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at USD 1,976 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 2,478.57

CASH AND EQV(HY)

Lowest at USD 3,878 MM

DEBT-EQUITY RATIO (HY)

Highest at 5.31 %

NET SALES(Q)

At USD 1,668 MM has Fallen at -10.38%

OPERATING PROFIT(Q)

Lowest at USD 347 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.8 %

PRE-TAX PROFIT(Q)

Lowest at USD 289 MM

NET PROFIT(Q)

Lowest at USD 212.78 MM

EPS(Q)

Lowest at USD 0.79

Here's what is working for Electronic Arts, Inc.
Debtors Turnover Ratio
Highest at 15.45 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost
Fallen by 0.99% (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

Here's what is not working for Electronic Arts, Inc.
Interest Coverage Ratio
Lowest at 2,478.57
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit
At USD 289 MM has Fallen at -30.32%
over average net sales of the previous four periods of USD 414.75 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow
Lowest at USD 1,976 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales
At USD 1,668 MM has Fallen at -10.38%
over average net sales of the previous four periods of USD 1,861.25 MM
MOJO Watch
Near term sales trend is negative

Net Sales (USD MM)

Operating Profit
Lowest at USD 347 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin
Lowest at 20.8 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at USD 289 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit
Lowest at USD 212.78 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit
At USD 212.78 MM has Fallen at -26.47%
over average net sales of the previous four periods of USD 289.37 MM
MOJO Watch
Near term Net Profit trend is negative

Net Profit (USD MM)

EPS
Lowest at USD 0.79
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv
Lowest at USD 3,878 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 5.31 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income
Highest at USD 0.13 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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