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Electronic Arts

DB:ERT
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ERT
DB
$28B
Market Cap
  1. Home
  2. DE
  3. Media
Company description

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The last earnings update was 77 days ago. More info.


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ERT Share Price and Events
7 Day Returns
2.5%
DB:ERT
-0.1%
DE Entertainment
1%
DE Market
1 Year Returns
-12.8%
DB:ERT
12.1%
DE Entertainment
-5.6%
DE Market
ERT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Electronic Arts (ERT) 2.5% -6.3% 5.8% -12.8% 52.8% 318.6%
DE Entertainment -0.1% 6.5% 12.7% 12.1% 35.3% 74.8%
DE Market 1% 6.1% 8.4% -5.6% 10.9% 13.8%
1 Year Return vs Industry and Market
  • ERT underperformed the Entertainment industry which returned 12.1% over the past year.
  • ERT underperformed the Market in Germany which returned -5.6% over the past year.
Price Volatility
ERT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Electronic Arts undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Electronic Arts to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Electronic Arts.

DB:ERT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ERT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.963 (1 + (1- 21%) (3.51%))
0.993
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.993 * 5.96%)
6.15%

Discounted Cash Flow Calculation for DB:ERT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Electronic Arts is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:ERT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.15%)
2019 1,254.60 Analyst x15 1,181.95
2020 1,415.97 Analyst x15 1,256.72
2021 1,717.82 Analyst x12 1,436.33
2022 1,878.20 Analyst x5 1,479.49
2023 1,992.98 Analyst x5 1,478.99
2024 1,927.00 Analyst x2 1,347.22
2025 1,883.00 Est @ -2.28% 1,240.22
2026 1,854.20 Est @ -1.53% 1,150.53
2027 1,835.61 Est @ -1% 1,073.03
2028 1,823.98 Est @ -0.63% 1,004.49
Present value of next 10 years cash flows $12,648.97
DB:ERT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,823.98 × (1 + 0.23%) ÷ (6.15% – 0.23%)
$30,886.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $30,886.42 ÷ (1 + 6.15%)10
$17,009.58
DB:ERT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $12,648.97 + $17,009.58
$29,658.55
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $29,658.55 / 299.60
$99
DB:ERT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ERT represents 0.89559x of NasdaqGS:EA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89559x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 99.00 x 0.89559
€88.66
Value per share (EUR) From above. €88.66
Current discount Discount to share price of €84.32
= -1 x (€84.32 - €88.66) / €88.66
4.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Electronic Arts is available for.
Intrinsic value
5%
Share price is €84.32 vs Future cash flow value of €88.66
Current Discount Checks
For Electronic Arts to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Electronic Arts's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Electronic Arts's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Electronic Arts's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Electronic Arts's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ERT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.66
NasdaqGS:EA Share Price ** NasdaqGS (2019-04-24) in USD $94.15
Germany Entertainment Industry PE Ratio Median Figure of 10 Publicly-Listed Entertainment Companies 19.65x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Electronic Arts.

DB:ERT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:EA Share Price ÷ EPS (both in USD)

= 94.15 ÷ 4.66

20.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Electronic Arts is overvalued based on earnings compared to the DE Entertainment industry average.
  • Electronic Arts is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Electronic Arts's expected growth come at a high price?
Raw Data
DB:ERT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
13%per year
Europe Entertainment Industry PEG Ratio Median Figure of 30 Publicly-Listed Entertainment Companies 1.71x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:ERT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.22x ÷ 13%

1.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Electronic Arts is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Electronic Arts's assets?
Raw Data
DB:ERT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $17.75
NasdaqGS:EA Share Price * NasdaqGS (2019-04-24) in USD $94.15
Germany Entertainment Industry PB Ratio Median Figure of 14 Publicly-Listed Entertainment Companies 1.56x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:ERT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:EA Share Price ÷ Book Value per Share (both in USD)

= 94.15 ÷ 17.75

5.3x

* Primary Listing of Electronic Arts.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Electronic Arts is overvalued based on assets compared to the DE Entertainment industry average.
X
Value checks
We assess Electronic Arts's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Electronic Arts has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Electronic Arts expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Electronic Arts expected to grow at an attractive rate?
  • Electronic Arts's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Electronic Arts's earnings growth is expected to exceed the Germany market average.
  • Electronic Arts's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ERT Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ERT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 13%
DB:ERT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 5.8%
Germany Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 23%
Germany Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ERT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ERT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 6,342 2
2023-03-31 6,108 2,512 1,822 6
2022-03-31 5,815 2,279 1,453 6
2021-03-31 5,462 1,895 1,263 20
2020-03-31 5,166 1,532 998 30
2019-03-31 4,783 1,429 973 27
DB:ERT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,294 1,563 1,417
2018-09-30 5,165 1,458 969
2018-06-30 4,838 1,636 692
2018-03-31 5,150 1,692 1,043
2017-12-31 5,095 1,514 1,002
2017-09-30 5,084 1,802 1,187
2017-06-30 5,023 1,872 1,171
2017-03-31 4,845 1,578 967
2016-12-31 4,626 1,537 1,300
2016-09-30 4,547 1,289 1,256
2016-06-30 4,464 1,176 1,154
2016-03-31 4,396 1,465 1,156

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Electronic Arts's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Electronic Arts's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ERT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from Electronic Arts Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ERT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31 4.81 5.48 4.13 2.00
2022-03-31 4.29 4.88 3.70 2.00
2021-03-31 3.81 4.65 3.23 6.00
2020-03-31 3.19 3.98 2.58 11.00
2019-03-31 3.36 4.45 3.05 10.00
DB:ERT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.66
2018-09-30 3.17
2018-06-30 2.25
2018-03-31 3.39
2017-12-31 3.25
2017-09-30 3.87
2017-06-30 3.84
2017-03-31 3.19
2016-12-31 4.29
2016-09-30 4.12
2016-06-30 3.75
2016-03-31 3.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Electronic Arts is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Electronic Arts's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Electronic Arts has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Electronic Arts performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Electronic Arts's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Electronic Arts has delivered over 20% year on year earnings growth in the past 5 years.
  • Electronic Arts's 1-year earnings growth exceeds its 5-year average (41.4% vs 22.5%)
  • Electronic Arts's earnings growth has exceeded the DE Entertainment industry average in the past year (41.4% vs -6%).
Earnings and Revenue History
Electronic Arts's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Electronic Arts Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ERT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,294.00 1,417.00 1,066.00 1,370.00
2018-09-30 5,165.00 969.00 1,123.00 1,365.00
2018-06-30 4,838.00 692.00 1,138.00 1,357.00
2018-03-31 5,150.00 1,043.00 1,110.00 1,320.00
2017-12-31 5,095.00 1,002.00 1,126.00 1,320.00
2017-09-30 5,084.00 1,187.00 1,126.00 1,276.00
2017-06-30 5,023.00 1,171.00 1,102.00 1,236.00
2017-03-31 4,845.00 967.00 1,112.00 1,205.00
2016-12-31 4,626.00 1,300.00 1,103.00 1,152.00
2016-09-30 4,547.00 1,256.00 1,040.00 1,133.00
2016-06-30 4,464.00 1,154.00 1,043.00 1,107.00
2016-03-31 4,396.00 1,156.00 1,028.00 1,109.00
2015-12-31 4,273.00 652.00 1,029.00 1,112.00
2015-09-30 4,329.00 839.00 1,018.00 1,129.00
2015-06-30 4,504.00 982.00 1,036.00 1,125.00
2015-03-31 4,515.00 875.00 1,033.00 1,094.00
2014-12-31 4,453.00 847.00 1,029.00 1,098.00
2014-09-30 4,135.00 397.00 1,058.00 1,090.00
2014-06-30 3,840.00 121.00 1,046.00 1,112.00
2014-03-31 3,575.00 8.00 1,060.00 1,125.00
2013-12-31 3,661.00 -36.00 1,094.00 1,123.00
2013-09-30 3,775.00 227.00 1,079.00 1,126.00
2013-06-30 3,791.00 119.00 1,135.00 1,149.00
2013-03-31 3,797.00 98.00 1,142.00 1,153.00
2012-12-31 3,956.00 175.00 1,190.00 1,118.00
2012-09-30 4,095.00 15.00 1,267.00 1,165.00
2012-06-30 4,099.00 56.00 1,258.00 1,177.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Electronic Arts has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Electronic Arts used its assets more efficiently than the DE Entertainment industry average last year based on Return on Assets.
  • Electronic Arts's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Electronic Arts's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Electronic Arts has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Electronic Arts's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Electronic Arts's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Electronic Arts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Electronic Arts's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Electronic Arts's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Electronic Arts Company Filings, last reported 3 months ago.

DB:ERT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,344.00 994.00 5,161.00
2018-09-30 5,317.00 993.00 4,545.00
2018-06-30 5,260.00 993.00 4,971.00
2018-03-31 4,595.00 992.00 5,331.00
2017-12-31 4,086.00 992.00 4,884.00
2017-09-30 4,388.00 991.00 4,355.00
2017-06-30 4,486.00 991.00 4,470.00
2017-03-31 4,060.00 990.00 4,532.00
2016-12-31 3,549.00 990.00 4,219.00
2016-09-30 3,608.00 990.00 3,266.00
2016-06-30 3,716.00 1,125.00 3,427.00
2016-03-31 3,396.00 1,150.00 3,834.00
2015-12-31 3,012.00 333.00 3,229.00
2015-09-30 3,146.00 422.00 2,588.00
2015-06-30 3,336.00 608.00 2,879.00
2015-03-31 3,036.00 602.00 3,021.00
2014-12-31 2,687.00 633.00 2,940.00
2014-09-30 2,670.00 591.00 2,388.00
2014-06-30 2,713.00 586.00 2,316.00
2014-03-31 2,422.00 580.00 2,365.00
2013-12-31 2,004.00 575.00 2,070.00
2013-09-30 2,286.00 570.00 1,418.00
2013-06-30 2,492.00 564.00 1,411.00
2013-03-31 2,267.00 559.00 1,680.00
2012-12-31 1,958.00 554.00 1,492.00
2012-09-30 2,154.00 549.00 1,315.00
2012-06-30 2,552.00 544.00 1,439.00
  • Electronic Arts's level of debt (18.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (28.6% vs 18.6% today).
  • Debt is well covered by operating cash flow (157.2%, greater than 20% of total debt).
  • Electronic Arts earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Electronic Arts's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Electronic Arts has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Electronic Arts's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Electronic Arts dividends. Estimated to be 0% next year.
If you bought €2,000 of Electronic Arts shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Electronic Arts's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Electronic Arts's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ERT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
Germany Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ERT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31
2021-03-31 0.00 5.00
2020-03-31 0.00 6.00
2019-03-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Electronic Arts has not reported any payouts.
  • Unable to verify if Electronic Arts's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Electronic Arts's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Electronic Arts has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Electronic Arts's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Electronic Arts's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Electronic Arts afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Electronic Arts has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Electronic Arts's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Wilson
COMPENSATION $35,728,764
AGE 43
TENURE AS CEO 5.6 years
CEO Bio

Mr. Andrew Wilson has been the Chief Executive Officer of Electronic Arts Inc. since September 17, 2013, where he provides direct insight into the day-to-day operation and strategic vision. Mr. Wilson served several strategic positions within the Electronic Arts Inc. since joined it in May 2000 in several roles, providing leadership on product and brand development for both packaged goods and digital services. Mr. Wilson served as an Executive Vice President for EA SPORTS at Electronic Arts Inc. from August 2011 to September 17, 2013. He served as Senior Vice President, EA SPORTS from March 2010 to August 2011. Prior to EA SPORTS, Mr. Wilson directed worldwide development across the EA SPORTS portfolio of franchises. He also led EA’s Online Organization overseeing the direct-to-consumer business, Asia Online Publishing as well as the EA studio in Seoul, Korea. Mr. Wilson served as Vice President and Executive Producer of the EA SPORTS FIFA Soccer Division. He was responsible for the strategic, creative and business direction of all EA SPORTS soccer games, including FIFA, FIFA World Cup, Euro, FIFA Manager and FIFA Street. He has been a Director of Electronic Arts Inc. since September 15, 2013 and Intel Corporation since September 18, 2017. He serves as chairman of the board for the World Surf League.

CEO Compensation
  • Andrew's compensation has increased by more than 20% in the past year.
  • Andrew's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Electronic Arts management team in years:

4.8
Average Tenure
50
Average Age
  • The tenure for the Electronic Arts management team is about average.
Management Team

Andrew Wilson

TITLE
CEO & Director
COMPENSATION
$36M
AGE
43
TENURE
5.6 yrs

Blake Jorgensen

TITLE
COO & CFO
COMPENSATION
$19M
AGE
58
TENURE
6.6 yrs

Ken Moss

TITLE
Executive VP & CTO
COMPENSATION
$15M
AGE
52
TENURE
4.8 yrs

Chris Bruzzo

TITLE
Chief Marketing Officer
COMPENSATION
$6M
AGE
48
TENURE
4.6 yrs

Ken Barker

TITLE
Senior VP & Chief Accounting Officer
COMPENSATION
$1M
AGE
51
TENURE
15.8 yrs

Chris Evenden

TITLE
Vice President of Investor Relations
TENURE
4.6 yrs

Jacob Schatz

TITLE
Executive VP
AGE
49
TENURE
4.8 yrs

David Tinson

TITLE
Senior Vice President of Global Communications

Mala Singh

TITLE
Chief People Officer
AGE
47
TENURE
2.5 yrs

Joel Linzner

TITLE
Executive Vice President of Worldwide Business Affairs
AGE
66
Board of Directors Tenure

Average tenure and age of the Electronic Arts board of directors in years:

7.6
Average Tenure
55
Average Age
  • The tenure for the Electronic Arts board of directors is about average.
Board of Directors

Lawrence Probst

TITLE
Non-Executive Chairman
COMPENSATION
$370K
AGE
68
TENURE
24.8 yrs

Andrew Wilson

TITLE
CEO & Director
COMPENSATION
$36M
AGE
43
TENURE
5.6 yrs

Rick Simonson

TITLE
Independent Director
COMPENSATION
$359K
AGE
59
TENURE
13.3 yrs

Luis Ubiñas

TITLE
Lead Director
COMPENSATION
$373K
AGE
55
TENURE
3.7 yrs

Jay Hoag

TITLE
Independent Director
COMPENSATION
$353K
AGE
60
TENURE
7.6 yrs

Leonard Coleman

TITLE
Independent Director
COMPENSATION
$342K
AGE
69
TENURE
17.8 yrs

Jeff Huber

TITLE
Independent Director
COMPENSATION
$342K
AGE
50
TENURE
9.9 yrs

Talbott Roche

TITLE
Independent Director
COMPENSATION
$340K
AGE
51
TENURE
2.8 yrs

Heidi Ueberroth

TITLE
Independent Director
COMPENSATION
$240K
AGE
52
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • Electronic Arts insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
21. Feb 19 Sell Jacob Schatz Individual 20. Feb 19 20. Feb 19 -1,000 €90.11 €-90,115
13. Feb 19 Sell Leonard Coleman Individual 12. Feb 19 12. Feb 19 -10,000 €88.86 €-888,554
04. Dec 18 Sell Vijayanthimala Singh Individual 03. Dec 18 03. Dec 18 -200 €75.57 €-15,115
05. Nov 18 Sell Vijayanthimala Singh Individual 01. Nov 18 01. Nov 18 -200 €79.87 €-15,974
03. Oct 18 Sell Vijayanthimala Singh Individual 01. Oct 18 01. Oct 18 -200 €104.67 €-20,935
03. Aug 18 Sell Vijayanthimala Singh Individual 01. Aug 18 01. Aug 18 -200 €110.98 €-22,196
04. Aug 18 Sell Luis Ubiñas Individual 02. Aug 18 02. Aug 18 -524 €110.74 €-58,030
23. May 18 Sell Denise Warren Individual 21. May 18 21. May 18 -1,000 €112.86 €-112,857
23. May 18 Sell Kenneth Moss Individual 21. May 18 21. May 18 -10,000 €112.75 €-1,127,539
23. May 18 Sell Kenneth Barker Individual 21. May 18 21. May 18 -4,050 €112.48 €-455,544
21. May 18 Sell Matthew Bilbey Individual 17. May 18 17. May 18 -16,156 €111.15 €-1,795,734
X
Management checks
We assess Electronic Arts's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Electronic Arts has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v. Zombies brands; and license games from others, such as FIFA, Madden NFL, and Star Wars. It also provides advertisement services on its online Web pages and games; and licenses its game software to third parties. The company markets and sells its games and services through digital distribution channels, as well as through retail channels, such as mass market retailers, electronics specialty stores, and game software specialty stores. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California.

Details
Name: Electronic Arts Inc.
ERT
Exchange: DB
Founded: 1982
$25,331,376,173
299,595,570
Website: http://www.ea.com
Address: Electronic Arts Inc.
209 Redwood Shores Parkway,
Redwood City,
California, 94065,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS EA Common Stock Nasdaq Global Select US USD 20. Sep 1989
DB ERT Common Stock Deutsche Boerse AG DE EUR 20. Sep 1989
WBAG EA Common Stock Wiener Boerse AG AT EUR 20. Sep 1989
BMV EA * Common Stock Bolsa Mexicana de Valores MX MXN 20. Sep 1989
Number of employees
Current staff
Staff numbers
9,300
Electronic Arts employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 21:53
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.