Electronic Arts
Market Cap
US$28.0b
Last Updated
2019/10/19 23:36 UTC
Data Sources
Company Financials +
Executive Summary
Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide.
Snowflake
Fundamentals
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has Electronic Arts's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
1.0%
EA
-0.02%
US Entertainment
0.4%
US Market
1 Year Return
-6.8%
EA
1.3%
US Entertainment
6.9%
US Market
Return vs Industry: EA underperformed the US Entertainment industry which returned 1.3% over the past year.
Return vs Market: EA underperformed the US Market which returned 6.9% over the past year.
Shareholder returns
| EA | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -0.02% | 0.4% |
| 30 Day | -4.6% | -2.6% | -1.1% |
| 90 Day | 8.7% | -4.4% | -0.5% |
| 1 Year | -6.8%-6.8% | 2.1%1.3% | 9.3%6.9% |
| 3 Year | 14.8%14.8% | 52.6%47.7% | 45.8%36.4% |
| 5 Year | 161.7%161.7% | 90.3%78.3% | 62.9%45.1% |
Price Volatility Vs. Market
How volatile is Electronic Arts's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Estimating The Fair Value Of Electronic Arts Inc. (NASDAQ:EA)2 weeks ago | Simply Wall St
A Closer Look At Electronic Arts Inc.'s (NASDAQ:EA) Impressive ROE3 weeks ago | Simply Wall St
Is Electronic Arts Inc.’s (NASDAQ:EA) 14% ROCE Any Good?Valuation
Is Electronic Arts undervalued compared to its fair value and its price relative to the market?
13.33x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: EA ($95.13) is trading above our estimate of fair value ($90.73)
Significantly Undervalued: EA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EA is good value based on its PE Ratio (13.3x) compared to the Entertainment industry average (40.9x).
PE vs Market: EA is good value based on its PE Ratio (13.3x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
Low PEG Ratio: EA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: EA is overvalued based on its PB Ratio (4.3x) compared to the US Entertainment industry average (2.9x).
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Future Growth
How is Electronic Arts forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
-45.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EA's earnings are forecast to decline over the next 3 years (-45.4% per year).
Earnings vs Market: EA's earnings are forecast to decline over the next 3 years (-45.4% per year).
High Growth Earnings: EA's earnings are forecast to decline over the next 3 years.
Revenue vs Market: EA's revenue (5.5% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: EA's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: EA's Return on Equity is forecast to be low in 3 years time (19.7%).
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Past Performance
How has Electronic Arts performed over the past 5 years?
16.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: EA's earnings have grown by 16.3% per year over the past 5 years.
Accelerating Growth: EA's earnings growth over the past year (210.3%) exceeds its 5-year average (16.3% per year).
Earnings vs Industry: EA earnings growth over the past year (210.3%) exceeded the Entertainment industry 21.5%.
Return on Equity
High ROE: EA's Return on Equity (33.1%) is considered high.
Return on Assets
ROA vs Industry: EA has a higher Return on Assets than the Entertainment industry average last year.
Return on Capital Employed
ROCE Improving: EA's Return on Capital Employed has declined over the past 3 years.
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Financial Health
How is Electronic Arts's financial position?
Financial Position Analysis
Short Term Liabilities: EA's short term assets ($5.8B) exceeds its short term liabilities ($1.7B)
Long Term Liabilities: EA's short term assets (5.8B) exceeds its long term liabilities (1.6B)
Debt to Equity History and Analysis
Debt Level: EA's debt to equity ratio (15.3%) is considered satisfactory
Reducing Debt: EA's debt to equity ratio has reduced from 21.6% to 15.3% over the past 5 years.
Debt Coverage: EA's debt is well covered by operating cash flow (159.3%).
Interest Coverage: EA earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: EA has a low level of unsold assets or inventory.
Debt Coverage by Assets: EA's debt is covered by short term assets (assets are 5.829140x debt).
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Dividend
What is Electronic Arts's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate EA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate EA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if EA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
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
What is the CEO of Electronic Arts's salary, the management and board of directors tenure and is there insider trading?
5.3yrs
Average management tenure
CEO
Andrew Wilson (44yo)
6.1yrs
Tenure
US$18,320,071
Compensation
Mr. Andrew Wilson has been the Chief Executive Officer of Electronic Arts Inc. since September 17, 2013, where he provides direct insight into the day-to-day operation and strategic vision. Mr. Wilson serv ...
CEO Compensation Analysis
Compensation vs. Market: Andrew's total compensation ($USD18.32M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.3yrs
Average Tenure
49.5yo
Average Age
Experienced Management: EA's management team is seasoned and experienced (5.3 years average tenure).
Board Age and Tenure
8.1yrs
Average Tenure
56yo
Average Age
Experienced Board: EA's board of directors are considered experienced (8.1 years average tenure).
Insider Trading
Insider Buying: EA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Lead Director Lead Director |
| Shares | 3,389 |
| Max Price | US$89.23 |
| Entity | Individual |
| Shares | 1,859 |
| Max Price | US$92.17 |
| Entity | Individual |
| Role | Head of Human Resources Chief People Officer |
| Shares | 2,000 |
| Max Price | US$93.76 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 1,000 |
| Max Price | US$102.38 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$100.55 |
| Entity | Individual |
| Role | Head of Human Resources Chief People Officer |
| Shares | 200 |
| Max Price | US$85.81 |
| Entity | Individual |
| Role | Head of Human Resources Chief People Officer |
| Shares | 200 |
| Max Price | US$91.00 |
Ownership Breakdown
Management Team
Blake Jorgensen (59yo)
COO & CFO
- Tenure: 7.1yrs
- Compensation: US$9.41m
Ken Barker (52yo)
Senior VP & Chief Accounting Officer
- Tenure: 16.3yrs
- Compensation: US$1.19m
Chris Evenden
Vice President of Investor Relations
- Tenure: 5.1yrs
Chris Bruzzo (49yo)
Chief Marketing Officer
- Tenure: 5.1yrs
- Compensation: US$6.38m
David Tinson
Senior Vice President of Global Communications
- Tenure: 0yrs
Ken Moss (53yo)
Chief Technology Officer
- Tenure: 5.3yrs
- Compensation: US$6.95m
Andrew Wilson (44yo)
CEO & Director
- Tenure: 6.1yrs
- Compensation: US$18.32m
Jacob Schatz (50yo)
Executive VP
- Tenure: 5.3yrs
Laura Miele (49yo)
Chief Studios Officer
- Tenure: 5.3yrs
- Compensation: US$6.95m
Mala Singh (48yo)
Chief People Officer
- Tenure: 3yrs
Board Members
Jay Hoag (61yo)
Independent Director
- Tenure: 8.1yrs
- Compensation: US$353.37k
Lawrence Probst (69yo)
Non-Executive Chairman
- Tenure: 25.3yrs
- Compensation: US$369.87k
Leonard Coleman (70yo)
Independent Director
- Tenure: 18.3yrs
- Compensation: US$342.37k
Rick Simonson (60yo)
Independent Director
- Tenure: 13.8yrs
- Compensation: US$358.91k
Luis Ubiñas (56yo)
Lead Director
- Tenure: 4.2yrs
- Compensation: US$375.40k
Jeff Huber (51yo)
Independent Director
- Tenure: 10.4yrs
- Compensation: US$342.35k
Heidi Ueberroth (53yo)
Independent Director
- Tenure: 1.9yrs
- Compensation: US$334.62k
Andrew Wilson (44yo)
CEO & Director
- Tenure: 6.1yrs
- Compensation: US$18.32m
Talbott Roche (52yo)
Independent Director
- Tenure: 3.3yrs
- Compensation: US$341.78k
Company Information
Electronic Arts Inc.'s company bio, 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$28.036b
- Shares outstanding: 294.71m
- Website: https://www.ea.com
Number of Employees
Location
- Electronic Arts Inc.
- 209 Redwood Shores Parkway
- Redwood City
- California
- 94065
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EA | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Sep 1989 |
| ERT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1989 |
| EA | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Sep 1989 |
| EA * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Sep 1989 |
| EAIN34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REP 0.5 COM USD0.01 | BR | BRL | May 2019 |
Biography
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 se ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 23:36 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/03/31 |
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.