Momentum Stock Watch: Electronic Arts Inc. (EA)

Company Profile:

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.

Recent News:

On August 26, 2022, the company announced a series of new multi-year partnerships and in-game integrations, coming in EA SPORTS™ FIFA 23 and heading into EA SPORTS FC, where fans can play with over 19,000 players, 700 teams, 100 stadiums and 30 leagues across the global sport.

For its first fiscal quarter ended June 30, 2022, the company reported net cash (used in)/provided by operating activities was $(78) million and $1.964 billion for the trailing twelve months.

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on September 21, 2022 to shareholders of record as of the close of business on August 31, 2022.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

EA receives outperform rating in price to book value, price to earnings, discounted cash flow and bebt to equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the stochastic oscillator, the MACD is trying to back up and the RSI(14) stands at 55.1 with positive bias. We rate Electronic Arts Inc. (EA) a STRONG BUY.

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