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Electronic Arts Inc EA

Morningstar Rating
$127.75 −1.41 (1.09%)
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Company Report

Electronic Arts Earnings: Continued Apex Weakness and a Tepid Outlook Temper Our Enthusiasm

Electronic Arts posted soft fiscal fourth-quarter results and issued a relatively weak outlook for fiscal 2025, owing to a smaller number of new titles and tepid expectations for live services coupled with increased investments to drive longer-term growth. Management offered margin expectations through fiscal 2027 to communicate confidence in the firm’s trajectory as it increases focus on core franchises like Sports FC and Apex Legends. After adjusting our expectations, we are cutting our fair value estimate to $140 from $150.

Price vs Fair Value

EA is trading at a 77% premium.
Price
$127.75
Fair Value
$524.00
Uncertainty
High
1-Star Price
$238.00
5-Star Price
$83.00
Economic Moat
Djlzpy
Capital Allocation
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Bulls Say, Bears Say

Bulls

EA dominates the sports genre of the game industry, accounting for nearly 50% of sports game sales.

Bears

EA competes with larger first-party video game publishers such as Nintendo, Sony, and Microsoft, which have greater resources and an institutional advantage in developing games for their own gaming consoles.

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News

Trading Information

Previous Close Price
$129.16
Day Range
$126.34128.90
52-Week Range
$117.47144.53
Bid/Ask
$127.05 / $127.65
Market Cap
$34.15 Bil
Volume/Avg
3.2 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
18.63
Price/Sales
4.60
Dividend Yield (Trailing)
0.59%
Dividend Yield (Forward)
0.59%
Total Yield
4.13%

Company Profile

EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC (formerly FIFA), Battlefield, Apex Legends, Mass Effect, Dragon’s Age, and Need for Speed.
Sector
Communication Services
Industry
Electronic Gaming & Multimedia
Stock Style Box
Mid Core
Total Number of Employees
13,400

Competitors

Valuation

Metric
EA
TTWO
Price/Earnings (Normalized)
18.6372.13
Price/Book Value
4.554.40
Price/Sales
4.604.64
Price/Cash Flow
15.3728.53
Price/Earnings
EA
TTWO

Financial Strength

Metric
EA
TTWO
Quick Ratio
1.210.62
Current Ratio
1.330.82
Interest Coverage
24.38−19.85
Quick Ratio
EA
TTWO

Profitability

Metric
EA
TTWO
Return on Assets (Normalized)
11.78%−6.34%
Return on Equity (Normalized)
21.10%−11.18%
Return on Invested Capital (Normalized)
16.37%−7.46%
Return on Assets
EA
TTWO
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Electronic Gaming & Multimedia Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NETTF
NetEase Inc Ordinary SharesQksngy$67.2 Bil
NTES
NetEase Inc ADRTpcmnknDslxjh$67.2 Bil
NTDOF
Nintendo Co LtdYgn$63.7 Bil
NTDOY
Nintendo Co Ltd ADRHwdgb$59.8 Bil
TTWO
Take-Two Interactive Software IncYzfkzljfWgxbjq$25.3 Bil
RBLX
Roblox Corp Ordinary Shares - Class ALyglrrnztZfftyyc$21.1 Bil
NEXOF
NEXON Co LtdDzms$14.4 Bil
NEXOY
NEXON Co Ltd ADRSgbj$14.4 Bil
BILI
Bilibili Inc ADRWzpxtlvbtYdgt$6.4 Bil

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