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EA

Electronic Arts NasdaqGS:EA Stock Report

Last Price

US$115.71

Market Cap

US$32.2b

7D

0.06%

1Y

-19.4%

Updated

30 Sep, 2022

Data

Company Financials +
EA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Electronic Arts
Historical stock prices
Current Share PriceUS$115.71
52 Week HighUS$146.72
52 Week LowUS$109.24
Beta0.84
1 Month Change-8.80%
3 Month Change-5.72%
1 Year Change-19.42%
3 Year Change21.02%
5 Year Change-3.65%
Change since IPO21,058.40%

Recent News & Updates

Sep 25

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.

Sep 18
An Intrinsic Calculation For Electronic Arts Inc. (NASDAQ:EA) Suggests It's 41% Undervalued

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...

Sep 08

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.”

Sep 03
Should You Investigate Electronic Arts Inc. (NASDAQ:EA) At US$125?

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...

Shareholder Returns

EAUS EntertainmentUS Market
7D0.06%-1.4%-2.5%
1Y-19.4%-52.0%-23.2%

Return vs Industry: EA exceeded the US Entertainment industry which returned -50.8% over the past year.

Return vs Market: EA exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is EA's price volatile compared to industry and market?
EA volatility
EA Average Weekly Movement3.3%
Entertainment Industry Average Movement9.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
198212,900Andrew Wilsonhttps://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 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

How do Electronic Arts's earnings and revenue compare to its market cap?
EA fundamental statistics
Market CapUS$32.17b
Earnings (TTM)US$896.00m
Revenue (TTM)US$7.21b

35.9x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EA income statement (TTM)
RevenueUS$7.21b
Cost of RevenueUS$1.85b
Gross ProfitUS$5.36b
Other ExpensesUS$4.46b
EarningsUS$896.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)3.22
Gross Margin74.37%
Net Profit Margin12.43%
Debt/Equity Ratio24.6%

How did EA perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

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

  • Analyst Forecast

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.

EA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.4x
Enterprise Value/EBITDA18.2x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does EA's PE Ratio compare to its peers?

EA PE Ratio vs Peers
The above table shows the PE ratio for EA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average43.7x
NTES NetEase
18.6x11.4%US$46.9b
ATVI Activision Blizzard
31x14.5%US$58.2b
TTWO Take-Two Interactive Software
112.3x61.6%US$18.2b
PLTK Playtika Holding
12.8x16.0%US$3.9b
EA Electronic Arts
35.9x16.2%US$32.2b

Price-To-Earnings vs Peers: EA is good value based on its Price-To-Earnings Ratio (35.9x) 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 (35.9x) compared to the US Entertainment industry average (20.8x)


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.

EA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.9x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: EA is expensive based on its Price-To-Earnings Ratio (35.9x) 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 ($115.71) is trading below our estimate of fair value ($207.57)

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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Future Growth

How is Electronic Arts forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.2%

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 (14.7% 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 (7.6% 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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Past Performance

How has Electronic Arts performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.6%

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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Financial Health

How is Electronic Arts's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.66%

Current Dividend Yield

Dividend Yield vs Market

Electronic Arts Dividend Yield vs Market
How does Electronic Arts dividend yield compare to the market?
SegmentDividend Yield
Company (Electronic Arts)0.7%
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 (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: EA's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Andrew Wilson (47 yo)

9yrs

Tenure

US$19,858,539

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 and serves as its Chairman of t...


CEO Compensation Analysis

Andrew Wilson's Compensation vs Electronic Arts Earnings
How has Andrew Wilson's remuneration changed compared to Electronic Arts's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$896m

Mar 31 2022US$20mUS$1m

US$789m

Dec 31 2021n/an/a

US$640m

Sep 30 2021n/an/a

US$785m

Jun 30 2021n/an/a

US$676m

Mar 31 2021US$39mUS$1m

US$837m

Dec 31 2020n/an/a

US$1b

Sep 30 2020n/an/a

US$1b

Jun 30 2020n/an/a

US$2b

Mar 31 2020US$21mUS$1m

US$3b

Dec 31 2019n/an/a

US$3b

Sep 30 2019n/an/a

US$3b

Jun 30 2019n/an/a

US$2b

Mar 31 2019US$18mUS$1m

US$1b

Dec 31 2018n/an/a

US$1b

Sep 30 2018n/an/a

US$969m

Jun 30 2018n/an/a

US$692m

Mar 31 2018US$36mUS$1m

US$1b

Dec 31 2017n/an/a

US$1b

Sep 30 2017n/an/a

US$1b

Jun 30 2017n/an/a

US$1b

Mar 31 2017US$20mUS$1m

US$967m

Dec 31 2016n/an/a

US$1b

Sep 30 2016n/an/a

US$1b

Jun 30 2016n/an/a

US$1b

Mar 31 2016US$17mUS$1m

US$1b

Compensation vs Market: Andrew's total compensation ($USD19.86M) is above average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EA's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: EA's board of directors are considered experienced (7.6 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

NasdaqGS:EA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
18 Aug 22SellUS$903,258Jacob SchatzIndividual6,816US$132.52
10 Nov 21SellUS$249,465Luis UbinasIndividual1,769US$141.02

Ownership Breakdown

What is the ownership structure of EA?
Owner TypeNumber of SharesOwnership Percentage
Private Companies23,7670.009%
State or Government148,1750.05%
Individual Insiders871,9040.3%
Sovereign Wealth Funds16,011,8445.8%
General Public21,036,0587.6%
Institutions239,953,57786.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 60.71% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.9%
BlackRock, Inc.
24,735,432$2.9b6.51%0.07%
7.91%
The Vanguard Group, Inc.
21,997,369$2.5b0.89%0.06%
5.76%
The Public Investment Fund of The Kingdom of Saudi Arabia
16,011,844$1.9b12.68%0.67%
4.72%
State Street Global Advisors, Inc.
13,135,359$1.5b-6.86%0.09%
4.46%
Wellington Management Group LLP
12,390,608$1.4b5.07%0.26%
4.13%
Massachusetts Financial Services Company
11,493,753$1.3b3.75%0.35%
2.48%
Capital Research and Management Company
6,884,050$796.6m-4.36%0.06%
2.08%
Geode Capital Management, LLC
5,793,816$670.4m17.21%0.09%
1.87%
Columbia Management Investment Advisers, LLC
5,208,043$602.6m0.76%0.18%
1.87%
Ninety One UK Limited
5,199,627$601.6m6.74%1.01%
1.82%
Amundi Asset Management
5,050,654$584.4m-13.18%0.18%
1.68%
Independent Franchise Partners, LLP
4,672,801$540.7m-3.22%4.68%
1.66%
Invesco Ltd.
4,629,419$535.7m27.5%0.18%
1.47%
AllianceBernstein L.P.
4,084,788$472.7m13.66%0.2%
1.27%
UBS Asset Management
3,528,338$408.3m-6.6%0.08%
1.26%
Barrow, Hanley, Mewhinney & Strauss, LLC
3,516,353$406.9m0%1.53%
1.13%
Northern Trust Global Investments
3,149,556$364.4m0.18%0.08%
0.9%
Legal & General Investment Management Limited
2,506,942$290.1m-1.15%0.09%
0.89%
Macquarie Investment Management Business Trust
2,485,188$287.6m-2.43%0.32%
0.8%
BNY Mellon Asset Management
2,215,393$256.3m4.76%0.06%
0.8%
Eaton Vance Management
2,214,733$256.3m6.9%0.1%
0.76%
FMR LLC
2,112,138$244.4m-18.03%0.02%
0.74%
Caisse de dépôt et placement du Québec
2,046,690$236.8m-19.84%0.33%
0.73%
California Public Employees' Retirement System
2,043,149$236.4m-3.21%0.22%
0.61%
Goldman Sachs Asset Management, L.P.
1,686,004$195.1m47.57%0.09%

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
  • Implied Market Cap: US$32.173b
  • Shares outstanding: 278.05m
  • Website: https://www.ea.com

Number of Employees


Location

  • Electronic Arts Inc.
  • 209 Redwood Shores Parkway
  • Redwood City
  • California
  • 94065
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1989
ERTDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1989
0IFXLSE (London Stock Exchange)YesCommon StockGBUSDSep 1989
EAWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1989
EA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1989
ERTETLX (Eurotlx)YesCommon StockITEURSep 1989
EABVL (Bolsa de Valores de Lima)YesCommon StockPEUSDSep 1989
EAIN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REP 1 COM USD0.01BRBRLMay 2019
EADBASE (Buenos Aires Stock Exchange)CEDEAR 14 REP 1 COMARUSDJun 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.