(EA) Electronic Arts - Overview
Sector: Communication Services | Industry: Electronic Gaming & Multimedia | Exchange: NASDAQ (USA) | Market Cap: 50.321m USD | Total Return: 41.8% in 12m
Avg Turnover: 342M
EPS Trend: 40.9%
Qual. Beats: -1
Rev. Trend: -55.4%
Qual. Beats: -2
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Electronic Arts Inc. (EA) is a global developer and publisher of interactive entertainment, operating across consoles, PCs, and mobile platforms. The company utilizes a diversified portfolio strategy, leveraging high-profile intellectual properties such as Battlefield, The Sims, and Apex Legends, alongside a dominant position in the sports simulation market through franchises like Madden NFL and EA SPORTS College Football.
The business model increasingly relies on a Games-as-a-Service (GaaS) framework, which generates recurring revenue through live services, digital subscriptions, and continuous content updates. This shift reflects a broader industry trend toward high-margin digital distribution, reducing reliance on physical retail and cyclical game launches. As a major player in the Interactive Home Entertainment sub-industry, EA competes for consumer engagement time against both traditional media and emerging social platforms.
Investors can further evaluate the companys valuation metrics and historical performance trends by consulting ValueRay. Headquartered in Redwood City, California, the company maintains a global distribution network encompassing direct-to-consumer digital storefronts and traditional mass-market retailers.
- Live services revenue growth from core sports franchises stabilizes recurring cash flow
- Expanding digital distribution margins offset rising game development and marketing costs
- Performance of key intellectual property like Apex Legends dictates quarterly earnings volatility
- Successful integration of EA SPORTS College Football drives short-term user acquisition gains
- Macroeconomic shifts in consumer discretionary spending impact premium title sales volume
| Net Income: 887.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 2.67 > 1.0 |
| NWC/Revenue: 2.34% < 20% (prev -2.45%; Δ 4.79% < -1%) |
| CFO/TA 0.19 > 3% & CFO 2.55b > Net Income 887.0m |
| Net Debt (-1.43b) to EBITDA (1.23b): -1.17 < 3 |
| Current Ratio: 1.05 > 1.5 & < 3 |
| Outstanding Shares: last quarter (253.0m) vs 12m ago -4.53% < -2% |
| Gross Margin: 78.97% > 18% (prev 0.79%; Δ 7.82k% > 0.5%) |
| Asset Turnover: 59.07% > 50% (prev 60.34%; Δ -1.27% > 0%) |
| Interest Coverage Ratio: 30.58 > 6 (EBITDA TTM 1.23b / Interest Expense TTM 38.0m) |
| A: 0.01 (Total Current Assets 3.97b - Total Current Liabilities 3.80b) / Total Assets 13.1b |
| B: 0.50 (Retained Earnings 6.61b / Total Assets 13.1b) |
| C: 0.09 (EBIT TTM 1.16b / Avg Total Assets 12.7b) |
| D: 1.02 (Book Value of Equity 6.51b / Total Liabilities 6.37b) |
| Altman-Z'' = 3.41 = A |
| DSRI: 0.92 (Receivables 632.0m/679.0m, Revenue 7.53b/7.46b) |
| GMI: 1.00 (GM 78.97% / 79.32%) |
| AQI: 0.95 (AQ_t 0.65 / AQ_t-1 0.69) |
| SGI: 1.01 (Revenue 7.53b / 7.46b) |
| TATA: -0.13 (NI 887.0m - CFO 2.55b) / TA 13.1b) |
| Beneish M = -3.24 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 201.72 with a total of 3,555,874 shares traded.
Over the past week, the price has changed by +0.02%,
over one month by -0.37%,
over three months by +0.67% and
over the past year by +41.78%.
Electronic Arts has received a consensus analysts rating of 3.71. Therefore, it is recommended to hold EA.
- StrongBuy: 10
- Buy: 0
- Hold: 18
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 202.8 | 0.5% |
P/E Trailing = 57.1738
P/E Forward = 23.0415
P/S = 6.6818
P/B = 7.4395
P/EG = 1.2454
Revenue TTM = 7.53b USD
EBIT TTM = 1.16b USD
EBITDA TTM = 1.23b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 465.0m USD (from shortTermDebt, two quarters ago)
Debt = 1.55b USD (from shortLongTermDebtTotal, last quarter) + Leases 63.0m
Net Debt = -1.43b USD (calculated: Debt 1.55b - CCE 2.98b)
Enterprise Value = 48.9b USD (50.3b + Debt 1.55b - CCE 2.98b)
Interest Coverage Ratio = 30.58 (Ebit TTM 1.16b / Interest Expense TTM 38.0m)
EV/FCF = 21.05x (Enterprise Value 48.9b / FCF TTM 2.32b)
FCF Yield = 4.75% (FCF TTM 2.32b / Enterprise Value 48.9b)
FCF Margin = 30.85% (FCF TTM 2.32b / Revenue TTM 7.53b)
Net Margin = 11.78% (Net Income TTM 887.0m / Revenue TTM 7.53b)
Gross Margin = 78.97% ((Revenue TTM 7.53b - Cost of Revenue TTM 1.58b) / Revenue TTM)
Gross Margin QoQ = 83.90% (prev 73.12%)
Tobins Q-Ratio = 3.72 (Enterprise Value 48.9b / Total Assets 13.1b)
Interest Expense / Debt = 2.45% (Interest Expense 38.0m / Debt 1.55b)
Taxrate = 20.38% (118.0m / 579.0m)
NOPAT = 925.2m (EBIT 1.16b * (1 - 20.38%))
Current Ratio = 1.05 (Total Current Assets 3.97b / Total Current Liabilities 3.80b)
Debt / Equity = 0.23 (Debt 1.55b / totalStockholderEquity, last quarter 6.76b)
Debt / EBITDA = -1.17 (Net Debt -1.43b / EBITDA 1.23b)
Debt / FCF = -0.62 (Net Debt -1.43b / FCF TTM 2.32b)
Total Stockholder Equity = 6.25b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.96% (Net Income 887.0m / Total Assets 13.1b)
RoE = 14.19% (Net Income TTM 887.0m / Total Stockholder Equity 6.25b)
RoCE = 15.02% (EBIT 1.16b / Capital Employed (Equity 6.25b + L.T.Debt 1.49b))
RoIC = 14.56% (NOPAT 925.2m / Invested Capital 6.35b)
WACC = 7.29% (E(50.3b)/V(51.9b) * Re(7.45%) + D(1.55b)/V(51.9b) * Rd(2.45%) * (1-Tc(0.20)))
Discount Rate = 7.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -88.66 | Cagr: -3.01%
[DCF] Terminal Value 77.97% ; FCFF base≈2.14b ; Y1≈2.45b ; Y5≈3.61b
[DCF] Fair Price = 222.1 (EV 54.3b - Net Debt -1.43b = Equity 55.7b / Shares 250.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 40.86 | EPS CAGR: 4.18% | SUE: -2.96 | # QB: -1
Revenue Correlation: -55.43 | Revenue CAGR: -1.04% | SUE: -1.22 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.93 | Chg30d=-37.84% | Revisions=-20% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.11 | Chg30d=-20.83% | Revisions=-20% | Analysts=4
EPS current Year (2027-03-31): EPS=5.60 | Chg30d=-1.48% | Revisions=-38% | GrowthEPS=+59.5% | GrowthRev=+2.3%
EPS next Year (2028-03-31): EPS=6.01 | Chg30d=+1.67% | Revisions=-45% | GrowthEPS=+7.4% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -45%