Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. Keeping that in mind, here are three profitable companies that balance growth and profitability.
Electronic Arts (EA)
Trailing 12-Month GAAP Operating Margin: 12.5%
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.
Why Should EA Be on Your Watchlist?
- Word-of-mouth marketing drives organic user growth, eliminating the need for costly advertising campaigns
- Excellent EBITDA margin of 35.3% highlights the efficiency of its business model
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
At $203.61 per share, Electronic Arts trades at 16.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Commvault (CVLT)
Trailing 12-Month GAAP Operating Margin: 7.3%
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ: CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Why Do We Like CVLT?
- Billings have averaged 26.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Superior software functionality and low servicing costs are reflected in its premier gross margin of 81.4%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Commvault is trading at $79.84 per share, or 2.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
California Resources (CRC)
Trailing 12-Month GAAP Operating Margin: 17.6%
Operating some of California's most productive oil fields including Elk Hills and Belridge, California Resources (NYSE: CRC) explores for and produces crude oil, natural gas, and natural gas liquids from fields across California.
Why Are We Fans of CRC?
- Annual revenue growth of 16.9% over the last five years was superb and indicates its market share increased during this cycle
- Excellent production efficiency results in a premier gross margin of 57.1%
- Strong free cash flow margin of 14.3% enables it to reinvest or return capital consistently
California Resources’s stock price of $67.71 implies a valuation ratio of 16.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
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