I've been keeping an eye on Electronic Arts Inc. (NASDAQ:EA) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EA has a lot to offer. Basically, it is a company with great financial health as well as a a great history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Electronic Arts here.
Flawless balance sheet with solid track record
EA delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 33%, which is an notable feat for the company. EA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that EA has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. EA appears to have made good use of debt, producing operating cash levels of 1.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Electronic Arts, I've compiled three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for EA’s future growth? Take a look at our free research report of analyst consensus for EA’s outlook.
- Valuation: What is EA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EA is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.