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Electronic Arts Inc
NASDAQ:EA

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Electronic Arts Inc Logo
Electronic Arts Inc
NASDAQ:EA
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Price: 145.36 USD 0.04%
Updated: Jul 12, 2024
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Intrinsic Value

Electronic Arts, Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. [ Read More ]

The intrinsic value of one EA stock under the Base Case scenario is 129.16 USD. Compared to the current market price of 145.36 USD, Electronic Arts Inc is Overvalued by 11%.

Key Points:
EA Intrinsic Value
Base Case
129.16 USD
Overvaluation 11%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Electronic Arts Inc

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Fundamental Analysis

EA Reports Record Earnings and Announces Stock Buyback Program
Earnings Call Summary

EA Reports Record Earnings and Announces Stock Buyback Program

Electronic Arts (EA) announced strong financial results for FY 2024, highlighted by record cash flow of $2.32 billion and a 63% increase in GAAP EPS to $4.68. Key drivers included the successful rebranding of EA SPORTS FC and growth in its sports franchises, despite a 5% decline in Q4 revenue. Looking forward to FY 2025, EA expects net bookings between $7.3 billion and $7.7 billion and GAAP EPS between $3.34 and $4.00. Additionally, EA revealed a $5 billion stock repurchase program over the next three years to return value to shareholders.

Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Electronic Arts Inc

Current Assets 4.2B
Cash & Short-Term Investments 3.3B
Receivables 565m
Other Current Assets 420m
Non-Current Assets 9.2B
PP&E 821m
Intangibles 5.8B
Other Non-Current Assets 2.6B
Current Liabilities 3.1B
Accounts Payable 110m
Accrued Liabilities 1.2B
Other Current Liabilities 1.8B
Non-Current Liabilities 2.8B
Long-Term Debt 1.9B
Other Non-Current Liabilities 935m
Efficiency

Earnings Waterfall
Electronic Arts Inc

Revenue
7.6B USD
Cost of Revenue
-1.7B USD
Gross Profit
5.9B USD
Operating Expenses
-4.2B USD
Operating Income
1.7B USD
Other Expenses
-377m USD
Net Income
1.3B USD

Free Cash Flow Analysis
Electronic Arts Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

EA Profitability Score
Profitability Due Diligence

Electronic Arts Inc's profitability score is 62/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive Operating Income
Positive 3-Years Revenue Growth
62/100
Profitability
Score

Electronic Arts Inc's profitability score is 62/100. The higher the profitability score, the more profitable the company is.

EA Solvency Score
Solvency Due Diligence

Electronic Arts Inc's solvency score is 83/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Long-Term Solvency
83/100
Solvency
Score

Electronic Arts Inc's solvency score is 83/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

EA Price Targets Summary
Electronic Arts Inc

Wall Street analysts forecast EA stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for EA is 152.43 USD with a low forecast of 132.31 USD and a high forecast of 178.5 USD.

Lowest
Price Target
132.31 USD
9% Downside
Average
Price Target
152.43 USD
5% Upside
Highest
Price Target
178.5 USD
23% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

EA Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

EA Price
Electronic Arts Inc

1M 1M
+7%
6M 6M
+5%
1Y 1Y
+7%
3Y 3Y
+4%
5Y 5Y
+59%
10Y 10Y
+303%
Annual Price Range
145.36
52w Low
117.97
52w High
145.36
Price Metrics
Average Annual Return 8.63%
Standard Deviation of Annual Returns 17.66%
Max Drawdown -26%
Shares Statistics
Market Capitalization 39B USD
Shares Outstanding 265 735 008
Percentage of Shares Shorted 2.79%

EA Return Decomposition
Main factors of price return

What is price return decomposition?

EA News

Other Videos

Last Important Events
Electronic Arts Inc

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

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Positive
Negative

Sentiment Analysis
Electronic Arts Inc

Today
Last 7 Days 7D
Last 30 Days 30D
Last 90 Days 90D

Company Profile

Electronic Arts Inc Logo
Electronic Arts Inc

Country

United States of America

Industry

Media

Market Cap

39B USD

Dividend Yield

0.52%

Description

Electronic Arts, Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company is headquartered in Redwood City, California and currently employs 11,000 full-time employees. The firm develops, markets, publishes and deliver games, content and services that can be played by consumers on a range of platforms, which include game consoles, personal computers (PCs), mobile phones and tablets. The firm's games and services are based on a portfolio of intellectual property that includes brands, such as Battlefield, The Sims, Apex Legends, Need for Speed, Plants vs. Zombies, FIFA, Madden NFL and Star Wars. The firm markets and sells its games and services through retail channels and through digital distribution channels. The firm's PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores, such as Steam. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.

Contact

CALIFORNIA
Redwood City
209 Redwood Shores Pkwy
+16506281500.0
https://www.ea.com/

IPO

1989-01-09

Employees

11 000

Officers

Chairman & CEO
Mr. Andrew Wilson
President of EA Entertainment & Technology
Ms. Laura Miele
Chief People Officer
Ms. Vijayanthimala Singh
Executive VP & CFO
Mr. Stuart Canfield
Vice President of Investor Relations
Andrew Uerkwitz
Executive VP of Global Affairs, Chief Legal Officer & Corporate Secretary
Mr. Jacob J. Schatz
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Vice President of Corporate Communications
John Reseburg
Executive Vice President of Worldwide Business Affairs
Mr. Joel Linzner
Executive VP & Chief Experience Officer
Mr. David Tinson
Chief Technology Officer of Creative & Development
Ms. Marija Radulovic-Nastic
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See Also

Discover More
What is the Intrinsic Value of one EA stock?

The intrinsic value of one EA stock under the Base Case scenario is 129.16 USD.

Is EA stock undervalued or overvalued?

Compared to the current market price of 145.36 USD, Electronic Arts Inc is Overvalued by 11%.