Is ELECTRONIC ARTS INC (NASDAQ:EA) suited for quality investing?

In this article we will dive into ELECTRONIC ARTS INC (NASDAQ:EA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ELECTRONIC ARTS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• ELECTRONIC ARTS INC has achieved substantial revenue growth over the past 5 years, with a 8.84% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of ELECTRONIC ARTS INC stands at 60.13%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 1.01, ELECTRONIC ARTS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 164.0%, ELECTRONIC ARTS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• ELECTRONIC ARTS INC has consistently achieved strong EBIT growth over the past 5 years, with a 10.31% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ELECTRONIC ARTS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NASDAQ:EA

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, EA scores 6 out of 10 in our fundamental rating. EA was compared to 71 industry peers in the Entertainment industry. EA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EA is not valued too expensively and it also shows a decent growth rate.

Check the latest full fundamental report of EA for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.