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Is Electronic Arts Inc.(NASDAQ: EA), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Electronic Arts Inc. (NASDAQ: EA) has been on the stock market since its IPO date on the 3/26/1990. Electronic Arts Inc. is in the Multimedia & Graphics Software industry and Technology sector. Average volume for Electronic Arts Inc., is 3230.3, and so far today it has a volume of 3187500. Performance year to date since the 3/26/1990 is 19.56%.

To help you determine whether Electronic Arts Inc. is undervalued the following values will help you decide. P/E is 22.8 and forward P/E is 20.04. PEG perhaps more useful shows that Electronic Arts Inc. has a value for PEG of 1.4. P/S ratio is 5.54 and the P/B ratio is 6.65. The P/Cash and P/Free cash flow is 7.22 and 26.39 respectively.

At the current price Electronic Arts Inc. is trading at, 82.16 (-0.71% today), Electronic Arts Inc. has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 3.6, and this is looking to grow in the next year to 12.86% after growing 30.10% this past year. EPS growth quarter over quarter is 5.90%, and 5.70% for sales growth quarter over quarter.

The number of shares outstanding is 301, and the number of shares float is 298.75. The senior management bring insider ownership to 0.50%, and institutional ownership is at *TBA. The float short is 6.39%, with the short ratio at a value of 5.91. Management has seen a return on assets of 17.70%, and also a return on investment of 25.90%.

The ability for Electronic Arts Inc., to deal with debt, means it current ratio is 2.4, and quick ratio is 2.4. Long term debt/equity is 0.27 and total debt/equity is 0.3. In terms of margins, Electronic Arts Inc. has a gross margin of 69.50%, with its operating margin at 21.20%, and Electronic Arts Inc. has a profit margin of 25.90%.

The 52 week high is -2.71%, with 54.99% being its 52 week low. The 20 day simple moving average is 4.50% and the 200 day simple moving average is 16.99%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Mark Hines

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