EA Stock 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$117.47|
|52 Week High||US$146.72|
|52 Week Low||US$109.24|
|1 Month Change||-7.12%|
|3 Month Change||-4.29%|
|1 Year Change||-17.42%|
|3 Year Change||24.52%|
|5 Year Change||-1.72%|
|Change since IPO||21,380.23%|
Recent News & Updates
Electronic Arts: Stock Could See Short-Term Limbo
Summary Electronic Arts has continued to see a boost in net bookings, driven in significant part by the FIFA gaming title. However, the stock appears expensive on an earnings basis. From 2023, investors are likely to pay attention to whether EA Sports FC can continue to bolster net bookings and ultimately drive earnings growth.
An Intrinsic Calculation For Electronic Arts Inc. (NASDAQ:EA) Suggests It's 41% Undervalued
In this article we are going to estimate the intrinsic value of Electronic Arts Inc. ( NASDAQ:EA ) by taking the...
EA says Ridgeline Games to work on 'Battlefield' narrative game
Electronic Arts (EA) has unveiled the next studio to build games in its Battlefield franchise: Seattle-based Ridgeline Games. Ridgeline, led by Halo co-creator Marcus Lehto, will focus on a narrative campaign set in EA's Battlefield universe. The studio will collaborate with Battlefield lead developer DICE and Ripple Effect. “We’re continuing to invest in the future of the franchise by bringing in new talent and perspectives,” said Respawn founder (and Battlefield head) Vince Zampella. “With Marcus and his team at Ridgeline Games joining the world-class global team we have already in place, Battlefield is in the strongest position to succeed.”
Should You Investigate Electronic Arts Inc. (NASDAQ:EA) At US$125?
Electronic Arts Inc. ( NASDAQ:EA ) saw significant share price movement during recent months on the NASDAQGS, rising to...
|EA||US Entertainment||US Market|
Return vs Industry: EA exceeded the US Entertainment industry which returned -49.1% over the past year.
Return vs Market: EA exceeded the US Market which returned -20.3% over the past year.
|EA Average Weekly Movement||3.3%|
|Entertainment Industry Average Movement||9.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
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
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 license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands. The company licenses its games to third parties to distribute and host its games.
Electronic Arts Fundamentals Summary
|EA fundamental statistics|
Is EA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EA income statement (TTM)|
|Cost of Revenue||US$1.85b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Nov 01, 2022
|Earnings per share (EPS)||3.22|
|Net Profit Margin||12.43%|
How did EA perform over the long term?See historical performance and comparison
0.6%Current Dividend Yield
Is EA undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for EA?
Other financial metrics that can be useful for relative valuation.
|What is EA's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does EA's PE Ratio compare to its peers?
|EA PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ATVI Activision Blizzard
TTWO Take-Two Interactive Software
PLTK Playtika Holding
EA Electronic Arts
Price-To-Earnings vs Peers: EA is good value based on its Price-To-Earnings Ratio (36.5x) compared to the peer average (43.7x).
Price to Earnings Ratio vs Industry
How does EA's PE Ratio compare vs other companies in the US Entertainment Industry?
Price-To-Earnings vs Industry: EA is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the US Entertainment industry average (21.4x)
Price to Earnings Ratio vs Fair Ratio
What is EA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||36.5x|
|Fair PE Ratio||26x|
Price-To-Earnings vs Fair Ratio: EA is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the estimated Fair Price-To-Earnings Ratio (26x).
Share Price vs Fair Value
What is the Fair Price of EA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: EA ($117.47) is trading below our estimate of fair value ($206.9)
Significantly Below Fair Value: EA is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Electronic Arts forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EA's forecast earnings growth (16.2% per year) is above the savings rate (1.9%).
Earnings vs Market: EA's earnings (16.2% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: EA's earnings are forecast to grow, but not significantly.
Revenue vs Market: EA's revenue (7.8% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: EA's revenue (7.8% 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 high in 3 years time (21.3%)
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How has Electronic Arts performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EA has high quality earnings.
Growing Profit Margin: EA's current net profit margins (12.4%) are higher than last year (11.8%).
Past Earnings Growth Analysis
Earnings Trend: EA's earnings have declined by 4.6% per year over the past 5 years.
Accelerating Growth: EA's earnings growth over the past year (32.5%) exceeds its 5-year average (-4.6% per year).
Earnings vs Industry: EA earnings growth over the past year (32.5%) exceeded the Entertainment industry -5.9%.
Return on Equity
High ROE: EA's Return on Equity (11.7%) is considered low.
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How is Electronic Arts's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: EA's short term assets ($3.5B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: EA's short term assets ($3.5B) exceed its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: EA has more cash than its total debt.
Reducing Debt: EA's debt to equity ratio has increased from 22.1% to 24.6% over the past 5 years.
Debt Coverage: EA's debt is well covered by operating cash flow (104.6%).
Interest Coverage: EA's interest payments on its debt are well covered by EBIT (21.4x coverage).
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What is Electronic Arts's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Electronic Arts Dividend Yield vs Market|
|Company (Electronic Arts)||0.6%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Entertainment)||0.9%|
|Analyst forecast in 3 Years (Electronic Arts)||0.7%|
Notable Dividend: EA's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: EA's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (4.61%).
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.
Earnings Payout to Shareholders
Earnings Coverage: EA is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: EA is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andrew Wilson (47 yo)
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 and serves as its Chairman of t...
CEO Compensation Analysis
|Andrew Wilson's Compensation vs Electronic Arts Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||US$20m||US$1m|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||US$39m||US$1m|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||US$21m||US$1m|
|Dec 31 2019||n/a||n/a|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||US$18m||US$1m|
|Dec 31 2018||n/a||n/a|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||US$36m||US$1m|
|Dec 31 2017||n/a||n/a|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||US$20m||US$1m|
|Dec 31 2016||n/a||n/a|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||US$17m||US$1m|
Compensation vs Market: Andrew's total compensation ($USD19.86M) is above average for companies of similar size in the US market ($USD13.03M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Experienced Management: EA's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: EA's board of directors are considered experienced (7.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|18 Aug 22||SellUS$903,258||Jacob Schatz||Individual||6,816||US$132.52|
|10 Nov 21||SellUS$249,465||Luis Ubinas||Individual||1,769||US$141.02|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||148,175||0.05%|
|Sovereign Wealth Funds||16,011,844||5.8%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Electronic Arts Inc.'s employee growth, exchange listings and data sources
- Name: Electronic Arts Inc.
- Ticker: EA
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Interactive Home Entertainment
- Sector: Media
- Implied Market Cap: US$32.662b
- Shares outstanding: 278.05m
- Website: https://www.ea.com
Number of Employees
- Electronic Arts Inc.
- 209 Redwood Shores Parkway
- Redwood City
- United States
|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|
|0IFX||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||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|
|ERT||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Sep 1989|
|EA||BVL (Bolsa de Valores de Lima)||Yes||Common Stock||PE||USD||Sep 1989|
|EAIN34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REP 1 COM USD0.01||BR||BRL||May 2019|
|EAD||BASE (Buenos Aires Stock Exchange)||CEDEAR 14 REP 1 COM||AR||USD||Jun 2022|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/29 00:00|
|End of Day Share Price||2022/09/29 00:00|
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.