(EA) Electronic Arts - Ratings and Ratios
Sports Games, Action Games, Role-Playing Games, Simulation Games, Shooter Games
EA EPS (Earnings per Share)
EA Revenue
Description: EA Electronic Arts
Electronic Arts Inc. is a leading global developer, marketer, publisher, and distributor of interactive entertainment software, operating across multiple platforms including game consoles, PCs, and mobile devices. The companys diverse portfolio encompasses various genres, including sports, racing, first-person shooter, action, role-playing, and simulation games. Notably, EA has established a strong presence in the sports gaming segment with franchises like EA SPORTS College Football and EA SPORTS Madden NFL, alongside other popular IPs such as The Sims, Apex Legends, and Battlefield.
From a strategic perspective, EAs business model is characterized by a mix of traditional retail sales and digital distribution, with a growing emphasis on live services, including extra content and subscription-based offerings. This shift towards digital and live services is a key driver of the companys revenue growth, as it enables EA to maintain a steady stream of income beyond the initial game sale. Key Performance Indicators (KPIs) to watch include the companys Average Revenue Per User (ARPU), customer retention rates, and the overall growth of its digital and live services segments.
In terms of financial health, EAs Market Capitalization stands at approximately $39.5 billion, with a Price-to-Earnings (P/E) ratio of 36.86 and a forward P/E of 19.01, indicating the markets expectations for the companys future earnings growth. The companys Return on Equity (RoE) is 15.68%, suggesting a relatively healthy profitability level compared to its peers. To further assess EAs investment potential, its essential to monitor its revenue growth, operating margins, and cash flow generation capabilities, as well as its ability to innovate and expand its gaming portfolio and services.
EAs competitive position in the gaming industry is influenced by its ability to innovate, the success of its game launches, and its capacity to adapt to changing consumer preferences and technological advancements. The companys commitment to enhancing its live services and digital offerings is crucial in maintaining its market share and driving long-term growth. As the gaming landscape continues to evolve, EAs strategic focus on key franchises, coupled with its efforts to expand into new areas such as esports and online multiplayer experiences, will be critical in determining its future success.
EA Stock Overview
| Market Cap in USD | 42,885m |
| Sub-Industry | Interactive Home Entertainment |
| IPO / Inception | 1990-03-26 |
EA Stock Ratings
| Growth Rating | 32.2% |
| Fundamental | 69.5% |
| Dividend Rating | 56.8% |
| Return 12m vs S&P 500 | -1.67% |
| Analyst Rating | 3.71 of 5 |
EA Dividends
| Dividend Yield 12m | 0.48% |
| Yield on Cost 5y | 0.56% |
| Annual Growth 5y | 34.92% |
| Payout Consistency | 99.2% |
| Payout Ratio | 10.9% |
EA Growth Ratios
| Growth Correlation 3m | 78.9% |
| Growth Correlation 12m | 36% |
| Growth Correlation 5y | 38.6% |
| CAGR 5y | 4.86% |
| CAGR/Max DD 5y | 0.16 |
| Sharpe Ratio 12m | 0.76 |
| Alpha | 6.91 |
| Beta | 0.362 |
| Volatility | 22.17% |
| Current Volume | 2086.8k |
| Average Volume 20d | 2745.3k |
| Stop Loss | 166.7 (-3.1%) |
| Signal | 0.30 |
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income (1.04b TTM) > 0 and > 6% of Revenue (6% = 448.4m TTM) |
| FCFTA 0.15 (>2.0%) and ΔFCFTA 0.36pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -6.62% (prev 15.33%; Δ -21.96pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 1.98b > Net Income 1.04b (YES >=105%, WARN >=100%) |
| Net Debt (-34.0m) to EBITDA (1.88b) ratio: -0.02 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.84 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (254.0m) change vs 12m ago -5.22% (target <= -2.0% for YES) |
| Gross Margin 79.14% (prev 78.01%; Δ 1.13pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 61.24% (prev 57.43%; Δ 3.82pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 33.91 (EBITDA TTM 1.88b / Interest Expense TTM 45.0m) >= 6 (WARN >= 3) |
Altman Z'' 3.44
| (A) -0.04 = (Total Current Assets 2.54b - Total Current Liabilities 3.04b) / Total Assets 11.70b |
| (B) 0.53 = Retained Earnings (Balance) 6.24b / Total Assets 11.70b |
| (C) 0.13 = EBIT TTM 1.53b / Avg Total Assets 12.20b |
| (D) 1.08 = Book Value of Equity 6.08b / Total Liabilities 5.62b |
| Total Rating: 3.44 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 69.50
| 1. Piotroski 8.0pt = 3.0 |
| 2. FCF Yield 4.06% = 2.03 |
| 3. FCF Margin 23.41% = 5.85 |
| 4. Debt/Equity 0.31 = 2.45 |
| 5. Debt/Ebitda 1.00 = 1.77 |
| 6. ROIC - WACC 5.20% = 6.50 |
| 7. RoE 15.27% = 1.27 |
| 8. Rev. Trend -33.87% = -1.69 |
| 9. Rev. CAGR -4.64% = -0.77 |
| 10. EPS Trend 15.98% = 0.40 |
| 11. EPS CAGR -10.44% = -1.31 |
What is the price of EA shares?
Over the past week, the price has changed by +0.43%, over one month by +16.48%, over three months by +20.51% and over the past year by +15.02%.
Is Electronic Arts a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of EA is around 161.22 USD . This means that EA is currently overvalued and has a potential downside of -6.24%.
Is EA a buy, sell or hold?
- Strong Buy: 10
- Buy: 0
- Hold: 18
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the EA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 172.3 | 0.2% |
| Analysts Target Price | 172.3 | 0.2% |
| ValueRay Target Price | 177.4 | 3.2% |
Last update: 2025-08-26 04:35
EA Fundamental Data Overview
CCE Cash And Equivalents = 1.63b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 42.9574
P/E Forward = 20.7039
P/S = 5.738
P/B = 7.0512
P/EG = 1.6832
Beta = 0.717
Revenue TTM = 7.47b USD
EBIT TTM = 1.53b USD
EBITDA TTM = 1.88b USD
Long Term Debt = 1.48b USD (from longTermDebt, last quarter)
Short Term Debt = 400.0m USD (from shortTermDebt, last quarter)
Debt = 1.88b USD (Calculated: Short Term 400.0m + Long Term 1.48b)
Net Debt = -34.0m USD (from netDebt column, last quarter)
Enterprise Value = 43.14b USD (42.89b + Debt 1.88b - CCE 1.63b)
Interest Coverage Ratio = 33.91 (Ebit TTM 1.53b / Interest Expense TTM 45.0m)
FCF Yield = 4.06% (FCF TTM 1.75b / Enterprise Value 43.14b)
FCF Margin = 23.41% (FCF TTM 1.75b / Revenue TTM 7.47b)
Net Margin = 13.94% (Net Income TTM 1.04b / Revenue TTM 7.47b)
Gross Margin = 79.14% ((Revenue TTM 7.47b - Cost of Revenue TTM 1.56b) / Revenue TTM)
Tobins Q-Ratio = 7.09 (Enterprise Value 43.14b / Book Value Of Equity 6.08b)
Interest Expense / Debt = 0.11% (Interest Expense 2.00m / Debt 1.88b)
Taxrate = 30.16% (from yearly Income Tax Expense: 484.0m / 1.60b)
NOPAT = 1.07b (EBIT 1.53b * (1 - 30.16%))
Current Ratio = 0.84 (Total Current Assets 2.54b / Total Current Liabilities 3.04b)
Debt / Equity = 0.31 (Debt 1.88b / last Quarter total Stockholder Equity 6.08b)
Debt / EBITDA = 1.00 (Net Debt -34.0m / EBITDA 1.88b)
Debt / FCF = 1.08 (Debt 1.88b / FCF TTM 1.75b)
Total Stockholder Equity = 6.82b (last 4 quarters mean)
RoA = 8.91% (Net Income 1.04b, Total Assets 11.70b )
RoE = 15.27% (Net Income TTM 1.04b / Total Stockholder Equity 6.82b)
RoCE = 18.37% (Ebit 1.53b / (Equity 6.82b + L.T.Debt 1.48b))
RoIC = 12.24% (NOPAT 1.07b / Invested Capital 8.71b)
WACC = 7.04% (E(42.89b)/V(44.77b) * Re(7.35%)) + (D(1.88b)/V(44.77b) * Rd(0.11%) * (1-Tc(0.30)))
Shares Correlation 5-Years: -100.0 | Cagr: -2.84%
Discount Rate = 7.35% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 78.35% ; FCFE base≈1.79b ; Y1≈1.80b ; Y5≈1.92b
Fair Price DCF = 136.0 (DCF Value 34.02b / Shares Outstanding 250.2m; 5y FCF grow -0.10% → 3.0% )
Revenue Correlation: -33.87 | Revenue CAGR: -4.64%
Rev Growth-of-Growth: 2.00
EPS Correlation: 15.98 | EPS CAGR: -10.44%
EPS Growth-of-Growth: -48.00
Additional Sources for EA Stock
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