Electronic Arts, Inc. (EA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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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Why is Electronic Arts, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -3.99% of over the last 5 years

ROCE(HY) Lowest at 10.03%
INTEREST COVERAGE RATIO(Q) Lowest at 1,571.43
CASH AND EQV(HY) Lowest at USD 4,159 MM

With ROE of 11.55%, it has a very expensive valuation with a 8.14 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 39.48%, its profits have fallen by -38.2%

Real-Time Research Report

Verdict Report

How much should you sell?

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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Electronic Arts, Inc.

39.98%

1.94

24.69%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

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)

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

Institutional Holding

100.00%

ROCE (avg)

24.27%

ROE (avg)

14.25%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.14

EV to EBIT

47.26

EV to EBITDA

36.20

EV to Capital Employed

9.45

EV to Sales

6.72

PEG Ratio

Dividend Yield

41.09%

ROCE (Latest)

19.99%

ROE (Latest)

11.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,522 MM

NET SALES(Q)

Highest at USD 1,916 MM

-24What is not working for the Company

ROCE(HY)

Lowest at 10.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,571.43

CASH AND EQV(HY)

Lowest at USD 4,159 MM

OPERATING PROFIT(Q)

Lowest at USD 220 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.48 %

PRE-TAX PROFIT(Q)

Lowest at USD 125 MM

NET PROFIT(Q)

Lowest at USD 83.97 MM

EPS(Q)

Lowest at USD 0.35

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

Operating Cash Flow

Highest at USD 2,522 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 1,916 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for Electronic Arts, Inc.

Pre-Tax Profit

At USD 125 MM has Fallen at -61.36%

over average net sales of the previous four periods of USD 323.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 83.97 MM has Fallen at -62.28%

over average net sales of the previous four periods of USD 222.63 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 1,571.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 220 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 11.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 125 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 83.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 4,159 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents