Overall, EA exhibits strong business quality through its established IP and adaptability, but faces challenges with recent title performances and competitive pressures. Future prospects are bolstered by a solid pipeline and innovative initiatives, yet uncertainties in the market remain a concern.
Analysis Date: February 4, 2025 Last Updated: May 29, 2025
+125%
+8.4% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNASDAQ
IndustryElectronic Gaming & Multimedia
SectorTechnology
Market Cap$38.10B
CEOMr. Andrew Wilson
Electronic Arts Inc. (EA) is a company that creates and sells video games for computers, game consoles, and mobile devices. They make popular games in different categories, like sports (FIFA, Madden NFL), racing (Need for Speed), and adventure (Apex Legends). EA not only develops these games but also works with other companies to share and sell them. They reach players through online stores and regular shops, making it easy for people to buy and enjoy their games.
Streams of revenue
Live services and other, net revenue:65%
Full game downloads, net revenue:24%
Packaged goods, net revenue:12%
Geographic Distribution
International:56%
North America:44%
Core Products
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FIFASoccer video game
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The SimsLife simulation game
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Madden NFLFootball video game
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BattlefieldWar-themed shooter
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Apex LegendsBattle royale game
Business Type
Business to Consumer
Competitive Advantages
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
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EA Stock Analysis: Electronic Arts Inc. Investment Guide
EA (Electronic Arts Inc.) is a Technology company listed on NASDAQ Global Select. The stock has generated 8.4% annual returns with an overall investment score of None/100.
Overall, EA exhibits strong business quality through its established IP and adaptability, but faces challenges with recent title performances and competitive pressures. Future prospects are bolstered by a solid pipeline and innovative initiatives, yet uncertainties in the market remain a concern.
EA Key Financial Metrics
EA financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 7.752959554986809/100 and profitability score of 5.0/100 with financial health rated 7.45/100.
About Electronic Arts Inc.
Electronic Arts Inc. (EA) is a company that creates and sells video games for computers, game consoles, and mobile devices. They make popular games in different categories, like sports (FIFA, Madden NFL), racing (Need for Speed), and adventure (Apex Legends). EA not only develops these games but also works with other companies to share and sell them. They reach players through online stores and regular shops, making it easy for people to buy and enjoy their games.
EA Investment Recommendation
Based on our comprehensive analysis of EA, investors should consider the company's positive performance track record, earnings consistency (7/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Technology Sector Analysis
EA operates in the Electronic Gaming & Multimedia industry within the Technology sector. This analysis compares Electronic Arts Inc. performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about EA Stock
Is EA a good investment?
EA (Electronic Arts Inc.) has generated 8.4% annual returns with an overall score of None/100. Overall, EA exhibits strong business quality through its established IP and adaptability, but faces challenges with recent title performances and competitive pressures. Future prospects are bolstered by a solid pipeline … Investors should consider their risk tolerance and investment goals when evaluating EA.
What is EA P/E ratio and valuation?
EA valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Electronic Gaming & Multimedia industry and Technology sector benchmarks. The company currently has a valuation score of 7.752959554986809/100.
Should I buy EA stock now?
The decision to buy EA stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 7.45/100, and detailed performance metrics to help inform your investment decision.
What are EA financial health indicators?
EA financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 7.45/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does EA compare to competitors?
EA performance is benchmarked against Electronic Gaming & Multimedia industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Electronic Arts Inc.'s market position.
What are EA historical returns?
EA has generated 8.4% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
EA Key Investment Metrics Summary
Annual Return: 8.4%
Valuation Score: 7.752959554986809/100
Profitability Score: 5.0/100
Financial Health Score: 7.45/100
Growth Score: -3.290208753779086/100
Earnings Beat Rate: 7/10 quarters
Sector: Technology
Industry: Electronic Gaming & Multimedia
Exchange: NASDAQ Global Select
Market Cap: 38095153250
EA Investment Thesis
Electronic Arts Inc. (EA) represents a moderate investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Strong Gross Profit Margin
Moderate Debt Levels
Strong Operating and Net Profit Margins
High Return on Equity
Strong Interest Coverage
Strong Brand Recognition and IP
Adaptability and Responsiveness to Player Feedback
Strong Cash Flow Generation
Pipeline of Upcoming Titles
Innovative Developments
Investment Risks
High Price-to-Earnings Ratio
High Price-to-Sales Ratio
Low Current and Quick Ratios
Underperformance in Key Titles
Competitive Market Challenges
Uncertainty in Market Dynamics
Potential for Continued Declines in Key Franchises
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