Electronic Arts Inc (EA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its robust financial health and promising market position. With a current share price of $142.99 and a daily gain of 1.71%, coupled with a three-month change of 10.76%, the company's financial metrics are indicative of its strong market performance. A detailed analysis, supported by the GF Score, positions Electronic Arts Inc for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key valuation aspects. These aspects have been proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Electronic Arts Inc boasts a GF Score of 93, indicating a strong potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 7/10
Understanding Electronic Arts Inc's Business
Electronic Arts Inc, with a market cap of $37.997 billion and annual sales of $7.562 billion, has evolved from a console-based video game publisher to a dominant player across consoles, PC, and mobile platforms. The company is renowned for its high-profile franchises such as Madden, EA Sports FC, Battlefield, and Apex Legends. Operating with a margin of 20.89%, Electronic Arts Inc's strategic focus on diverse gaming platforms has fortified its market presence.
Financial Strength Breakdown
Electronic Arts Inc's financial resilience is reflected in its impressive Interest Coverage ratio of 35.91 and an Altman Z-Score of 5.65, indicating a strong shield against financial distress. The company's strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.26, showcasing prudent financial management.
Profitability Rank Breakdown
Electronic Arts Inc's profitability is robust, with an increasing Operating Margin over the past five years, reaching 20.89% in 2024. The company's Gross Margin also reflects a consistent upward trend, further affirming its efficiency in revenue conversion to profit.
Growth Rank Breakdown
Electronic Arts Inc is committed to growth, as demonstrated by its 13% 3-Year Revenue Growth Rate, outperforming 59.51% of its industry peers. The company's EBITDA growth rates further highlight its dynamic growth capabilities.
Conclusion
Considering Electronic Arts Inc's strong financial strength, profitability, and growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
