Electronic Arts
Market Cap
US$38.6b
Last Updated
2020/07/02 23:52 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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -29.4% per year for the next 3 years
Snowflake Analysis
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
Stable Share Price: EA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.4%
EA
2.5%
US Entertainment
1.6%
US Market
1 Year Return
36.4%
EA
14.9%
US Entertainment
4.8%
US Market
Return vs Industry: EA exceeded the US Entertainment industry which returned 14.9% over the past year.
Return vs Market: EA exceeded the US Market which returned 4.8% over the past year.
Shareholder returns
| EA | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 2.5% | 1.6% |
| 30 Day | 9.4% | 8.2% | 2.3% |
| 90 Day | 30.2% | 37.8% | 29.5% |
| 1 Year | 36.4%36.4% | 16.0%14.9% | 7.1%4.8% |
| 3 Year | 26.6%26.6% | 54.6%50.6% | 37.1%28.1% |
| 5 Year | 89.8%89.8% | 90.7%81.7% | 67.2%48.6% |
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
4 days ago | Simply Wall St
What Is Electronic Arts Inc.'s (NASDAQ:EA) Share Price Doing?2 weeks ago | Simply Wall St
Should You Worry About Electronic Arts Inc.'s (NASDAQ:EA) CEO Salary Level?4 weeks ago | Simply Wall St
Electronic Arts's (NASDAQ:EA) Earnings Are Growing But Is There More To The Story?Valuation
Is Electronic Arts undervalued compared to its fair value and its price relative to the market?
12.9x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EA ($133.84) is trading above our estimate of fair value ($89.85)
Significantly Below Fair Value: 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 (12.9x) compared to the Entertainment industry average (27.9x).
PE vs Market: EA is good value based on its PE Ratio (12.9x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
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 (5.2x) compared to the US Entertainment industry average (2.8x).
Next Steps
Future Growth
How is Electronic Arts forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
-29.4%
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 (-29.4% per year).
Earnings vs Market: EA's earnings are forecast to decline over the next 3 years (-29.4% per year).
High Growth Earnings: EA's earnings are forecast to decline over the next 3 years.
Revenue vs Market: EA's revenue (5% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: EA's revenue (5% 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 (15.8%).
Next Steps
Past Performance
How has Electronic Arts performed over the past 5 years?
23.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EA has a high level of non-cash earnings.
Growing Profit Margin: EA's current net profit margins (54.9%) are higher than last year (20.8%).
Past Earnings Growth Analysis
Earnings Trend: EA's earnings have grown significantly by 23.6% per year over the past 5 years.
Accelerating Growth: EA's earnings growth over the past year (194.6%) exceeds its 5-year average (23.6% per year).
Earnings vs Industry: EA earnings growth over the past year (194.6%) exceeded the Entertainment industry 21.3%.
Return on Equity
High ROE: EA's Return on Equity (40.7%) is considered outstanding.
Next Steps
Financial Health
How is Electronic Arts's financial position?
Financial Position Analysis
Short Term Liabilities: EA's short term assets ($6.5B) exceed its short term liabilities ($2.7B).
Long Term Liabilities: EA's short term assets ($6.5B) exceed its long term liabilities ($987.0M).
Debt to Equity History and Analysis
Debt Level: EA's debt to equity ratio (13.3%) is considered satisfactory.
Reducing Debt: EA's debt to equity ratio has reduced from 19.8% to 13.3% over the past 5 years.
Debt Coverage: EA's debt is well covered by operating cash flow (180.4%).
Interest Coverage: EA earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Electronic Arts's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Andrew Wilson (45yo)
6.83yrs
Tenure
US$21,365,751
Compensation
Mr. Andrew Wilson has been a Trustee of The Paley Center for Media since April 2020. He has been the Chief Executive Officer of Electronic Arts Inc. since September 17, 2013, where he provides direct insig ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD21.37M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$21.37m | 0.043% $16.8m | |
| COO & CFO | 7.83yrs | US$19.51m | 0.029% $11.1m | |
| Chief Technology Officer | 6yrs | US$14.26m | 0.058% $22.3m | |
| Chief Marketing Officer | 5.83yrs | US$7.23m | 0.010% $3.9m | |
| Chief Studios Officer | 6.08yrs | US$16.08m | 0.0082% $3.2m | |
| Senior VP & Chief Accounting Officer | 17.08yrs | US$1.19m | 0.0078% $3.0m | |
| Vice President of Investor Relations | 5.83yrs | no data | no data | |
| Executive VP | 6.08yrs | no data | 0.0092% $3.5m | |
| Senior Vice President of Global Communications | no data | no data | no data | |
| Chief People Officer | 3.75yrs | no data | 0.0088% $3.4m |
6.1yrs
Average Tenure
50.5yo
Average Age
Experienced Management: EA's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$21.37m | 0.043% $16.8m | |
| Independent Director | 8.83yrs | US$353.45k | 0.064% $24.8m | |
| Independent Non-Executive Chairman | 26yrs | US$369.98k | 0.18% $70.6m | |
| Independent Director | 19.08yrs | US$342.48k | 0.012% $4.6m | |
| Independent Director | 14.5yrs | US$358.89k | 0.013% $5.2m | |
| Independent Lead Director | 4.92yrs | US$375.43k | no data | |
| Independent Director | 11.17yrs | US$342.45k | 0.024% $9.5m | |
| Independent Director | 2.67yrs | US$334.27k | 0.0016% $610.5k | |
| Independent Director | 4.08yrs | US$342.46k | 0.0039% $1.5m |
8.8yrs
Average Tenure
57yo
Average Age
Experienced Board: EA's board of directors are considered experienced (8.8 years average tenure).
Ownership
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
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$38.642b
- Shares outstanding: 288.71m
- 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 |
| 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 |
| EAIN34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REP 1 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 services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and Plants v. Zombies brands; and license games from others, including FIFA, Madden NFL, and Star Wars brands. It also provides advertising services; and licenses its games to third parties to distribute and host its games. The company markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/02 23:52 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.