Electronic Arts Stock Analysis, Valuation (NASDAQ:EA)
View the Electronic Arts stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for EA stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Electronic Arts Inc. Stock Rating 3.5/5
Amigobulls EA stock analysis takes into account various financial ratios like relative valuation, Electronic Arts revenue, growth and return on equity based on latest quarter 2019 Q1 financial statements. We also check Electronic Arts dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Electronic Arts valuation analysis. Electronic Arts stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy EA stock?
- Electronic Arts had a healthy average operating margin of 20.48 over the last 4 quarters.
- Net margins came in at average 14.3% for Electronic Arts over the last twelve months.
- Electronic Arts has a lower debt burden than its peers in the Consumer Discretionary sector, with a debt/equity ratio of 0.19.
- Electronic Arts has an attractive ROIC (Return on Invested Capital) of 58.1
- Electronic Arts has a healthy FCF (Free Cash Flow) margin of 7.7.
Should you sell EA stock?
- Cash flow from operations is low at 0.4096 times the net income.
- EA stock is trading at a PE ratio of 34.9, which is worse than the sector average multiple of 21.6.
- EA stock is trading at a PS multiple of 8.3, which is a negative when compared to the Consumer Discretionary sector average multiple of 1.6.
Electronic Arts Related Company Stock Videos
Investors can use Amigobulls Electronic Arts stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Electronic Arts revenue growth and profit or net income are two main metrics which help in identifying whether EA stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Electronic Arts stock.