| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
EA Overview
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide.
Electronic Arts Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$131.98 |
| 52 Week High | US$110.15 |
| 52 Week Low | US$150.30 |
| Beta | 0.90 |
| 1 Month Change | -7.67% |
| 3 Month Change | -8.41% |
| 1 Year Change | -0.23% |
| 3 Year Change | 12.28% |
| 5 Year Change | 54.53% |
| Change since IPO | 24,033.49% |
Recent News & Updates
Shareholder Returns
| EA | US Entertainment | US Market | |
|---|---|---|---|
| 7D | 1.5% | 1.5% | 2.0% |
| 1Y | -0.2% | 25.9% | 32.8% |
Return vs Industry: EA underperformed the US Entertainment industry which returned 25.9% over the past year.
Return vs Market: EA underperformed the US Market which returned 32.8% over the past year.
Price Volatility
| EA volatility | |
|---|---|
| EA Beta | 0.90 |
| Industry Beta | 1.05 |
| Market Beta | 1 |
Stable Share Price: EA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: EA's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1982 | 11,000 | Andrew Wilson | https://www.ea.com |
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and Plants vs. Zombies brands; and license games from others, including FIFA, Madden NFL, UFC, NHL, Formula 1, and Star Wars brands. The company also provides advertising services; and licenses its games to third parties to distribute and host its games.
Electronic Arts Fundamentals Summary
| EA fundamental statistics | |
|---|---|
| Market Cap | US$37.56b |
| Earnings (TTM) | US$676.00m |
| Revenue (TTM) | US$5.72b |
55.6x
P/E Ratio6.6x
P/S RatioIs EA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EA income statement (TTM) | |
|---|---|
| Revenue | US$5.72b |
| Cost of Revenue | US$1.52b |
| Gross Profit | US$4.20b |
| Expenses | US$3.52b |
| Earnings | US$676.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 03, 2021
| Earnings per share (EPS) | 2.38 |
| Gross Margin | 73.41% |
| Net Profit Margin | 11.82% |
| Debt/Equity Ratio | 24.3% |
How did EA perform over the long term?
See historical performance and comparisonDividends
0.5%
Current Dividend Yield22%
Payout RatioValuation
Is Electronic Arts undervalued compared to its fair value and its price relative to the market?
33.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EA ($131.98) is trading below our estimate of fair value ($197.82)
Significantly Below Fair Value: EA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EA is poor value based on its PE Ratio (55.6x) compared to the US Entertainment industry average (28x).
PE vs Market: EA is poor value based on its PE Ratio (55.6x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: EA is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: EA is overvalued based on its PB Ratio (4.9x) compared to the US Entertainment industry average (4.2x).
Future Growth
How is Electronic Arts forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
35.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EA's forecast earnings growth (35.7% per year) is above the savings rate (2%).
Earnings vs Market: EA's earnings (35.7% per year) are forecast to grow faster than the US market (15% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EA's revenue (8.2% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: EA's revenue (8.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EA's Return on Equity is forecast to be low in 3 years time (19%).
Past Performance
How has Electronic Arts performed over the past 5 years?
8.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EA has high quality earnings.
Growing Profit Margin: EA's current net profit margins (11.8%) are lower than last year (34.3%).
Past Earnings Growth Analysis
Earnings Trend: EA's earnings have grown by 8.2% per year over the past 5 years.
Accelerating Growth: EA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EA had negative earnings growth (-65.9%) over the past year, making it difficult to compare to the Entertainment industry average (10.8%).
Return on Equity
High ROE: EA's Return on Equity (8.7%) is considered low.
Financial Health
How is Electronic Arts's financial position?
Financial Position Analysis
Short Term Liabilities: EA's short term assets ($4.7B) exceed its short term liabilities ($2.5B).
Long Term Liabilities: EA's short term assets ($4.7B) exceed its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: EA's debt to equity ratio (24.3%) is considered satisfactory.
Reducing Debt: EA's debt to equity ratio has reduced from 30.2% to 24.3% over the past 5 years.
Debt Coverage: EA's debt is well covered by operating cash flow (75.3%).
Interest Coverage: EA's interest payments on its debt are well covered by EBIT (32x coverage).
Balance Sheet
Dividend
What is Electronic Arts's current dividend yield, its reliability and sustainability?
0.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EA's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: EA's dividend (0.52%) is low compared to the top 25% of dividend payers in the US market (3.57%).
Stability and Growth of Payments
Stable Dividend: EA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: EA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: EA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.1yrs
Average management tenure
CEO
Andrew Wilson (46 yo)
8yrs
Tenure
US$39,165,820
Compensation
Mr. Andrew Wilson has been a Trustee of The Paley Center for Media since April 2020. He has been the Chief Executive Officer of Electronic Arts Inc. since September 17, 2013, where he provides direct insig...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD39.17M) is above average for companies of similar size in the US market ($USD11.29M).
Compensation vs Earnings: Andrew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: EA's management team is seasoned and experienced (7.1 years average tenure).
Board Members
Experienced Board: EA's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Electronic Arts Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Electronic Arts Inc.
- Ticker: EA
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Interactive Home Entertainment
- Sector: Media
- Market Cap: US$37.559b
- Shares outstanding: 284.58m
- Website: https://www.ea.com
Number of Employees
Location
- Electronic Arts Inc.
- 209 Redwood Shores Parkway
- Redwood City
- California
- 94065
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 22:53 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/03/31 |
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.