Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, video game publisher Electronic Arts (Nasdaq: ERTS) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Electronic Arts' business and see what CAPS investors are saying about the stock right now.

Electronic Arts facts

Headquarters (Founded) Redwood City, Calif. (1982)
Market Cap $6.31 billion
Industry Multimedia and graphics software
Trailing-12-Month Revenue $3.48 billion
Management

CEO John Riccitiello (since 2007)

CFO Eric Brown (since 2008)
Return on Equity (Average Past 3 Years) (24.5%)
Cash/Debt $1.97 billion / $0
Competitors

Activision Blizzard (Nasdaq: ATVI)

Take-Two Interactive (Nasdaq: TTWO)

THQ (Nasdaq: THQI)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 12% of the 2,215 members who have rated Electronic Arts believe the stock will underperform the S&P 500 going forward. These bears include All-Star ikkyu2, who is ranked in the top 5% of our community, and TheStankometer.

Earlier this month, ikkyu2 touched on a couple of Electronic Arts' negatives: "Still overpriced, still badly managed. ... Someone's making money off ERTS' great products and acquisitions, but it's not common equityholders."

In fact, Electronic Arts sports a negative three-year average operating margin of (10%). As hard as things have been for many companies in the industry, that's even lower than the negative margins of (0.1%) at Take-Two and (7.9%) at THQ, let alone Activision's average 8.7% positive margin over the same period.

CAPS member TheStankometer elaborates on the bear case:

I'm a big fan of the games this company makes. .. but that doesn't change the fact that their fundamentals stink. And so does this whole industry. It's a wild place out there. Piracy is rampant. Employee turnover is high. Civil wars seem to regularly break out between idealistic studios trying to stay true to their art and CEOs who want nothing more than to show a profit in the books.

[Electronic Arts] has released many successful games in the past, and I expect that they will be a mainstay in the industry for many years to come. But until the video game market grows up a little bit, I think I'll keep my money away from the likes of companies like these.

Sorry Electronic Arts ... I love your games, but your fundamentals are really stinkin' up the place.

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