3.56%
-15.76%
-18.74%
-17.18%
-10.88%
-5.41%
17.01%
AI Spotlight on EA
Company Description
Electronic Arts Inc.develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide.It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.
The company licenses its games to third parties to distribute and host its games.It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements.Electronic Arts Inc.
was incorporated in 1982 and is headquartered in Redwood City, California.
Market Data
| Last Price | 122.91 |
| Change Percentage | 3.56% |
| Open | 122 |
| Previous Close | 118.68 |
| Market Cap ( Millions) | 32236 |
| Volume | 6545969 |
| Year High | 168.5 |
| Year Low | 115.21 |
| M A 50 | 151.07 |
| M A 200 | 143.51 |
Financial Ratios
| FCF Yield | 6.47% |
| Dividend Yield | 0.65% |
| ROE | 14.01% |
| Debt / Equity | 26.35% |
| Net Debt / EBIDTA | -13.23% |
| Price To Book | 4.15 |
| Price Earnings Ratio | 29.41 |
| Price To FCF | 15.45 |
| Price To sales | 4.13 |
| EV / EBITDA | 16.37 |
News
- 02:42 - Rosen Law Firm Encourages Electronic Arts Inc. Investors to Inquire About Securities Class Action Investigation - EA
- Jan -31 - Electronic Arts to Post Q3 Earnings: What's in Store for the Stock?
- Jan -31 - Did Electronic Arts Inc. Mislead Investors? Shareholder Rights Advocates at Levi & Korsinsky Investigate - EA
- Jan -31 - The Schall Law Firm Invites Shareholders With Losses To Join An Investigation Into Electronic Arts Inc. For Securities Fraud
- Jan -31 - Bronstein, Gewirtz & Grossman, LLC Encourages Electronic Arts Inc. (EA) Stockholders to Inquire about Securities Investigation
- Jan -30 - Electronic Arts Inc. Investigated by Shareholder Rights Advocates - Investors Should Contact Levi & Korsinsky Regarding Potential Securities Law Violations - EA
- Jan -30 - SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Electronic Arts Inc. - EA
- Jan -30 - Electronic Arts Inc. Is Being Investigated For Securities Law Violations And Affected Investors Are Urged To Contact The Schall Law Firm
- Jan -30 - Bronstein, Gewirtz & Grossman, LLC Announces an Investigation Against Electronic Arts Inc. (EA) and Encourages Investors to Learn More About the Investigation
- Jan -29 - Electronic Arts Inc. Investigation Ongoing: Contact Levi & Korsinsky About Potential Securities Fraud Allegations - EA
- Jan -29 - The Schall Law Firm Invites Shareholders With Losses To Join An Investigation Into Electronic Arts Inc. For Securities Fraud
- Jan -29 - EA INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces an Investigation into Electronic Arts Inc. and Encourages Investors to Contact the Firm
- Jan -28 - Electronic Arts Inc. Being Investigated on Behalf of Electronic Arts Inc. Investors. Contact Levi & Korsinsky For Details.
- Jan -28 - ROSEN, A TRUSTED AND LEADING LAW FIRM, Encourages Electronic Arts Inc. Investors to Inquire About Securities Class Action Investigation - EA
- Jan -28 - Lost Money on Electronic Arts Inc.(EA)? Contact Levi & Korsinsky Regarding an Ongoing Investigation
- Jan -28 - Electronic Arts Inc. Is Being Investigated For Securities Law Violations And Impacted Investors Are Urged To Contact The Schall Law Firm
- Jan -28 - Bronstein, Gewirtz & Grossman, LLC Initiates an Investigation into Allegations Against Electronic Arts Inc. (EA) And Encourages Stockholders to Reach Out
- Jan -28 - Electronic Arts Inc. (EA) Investors with Losses are Urged to Contact Levi & Korsinsky to Discuss Their Rights
- Jan -28 - EA Investors Have Opportunity to Join Electronic Arts Inc. Securities Fraud Investigation with the Schall Law Firm
- Jan -27 - Lost Money on Electronic Arts Inc. (EA)? Contact Levi & Korsinsky Regarding an Ongoing Investigation
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Live Services and Other
Expected Growth : 3.8 %
What the company do ?
Live Services and Other from Electronic Arts Inc. refers to the company's online gaming platform, including its cloud-based gaming service, EA Access, and other miscellaneous revenue streams.
Why we expect these perspectives ?
EA's Live Services and Other segment growth of 3.8% is driven by increasing engagement in FIFA Ultimate Team, Madden NFL Mobile, and The Sims FreePlay, as well as growth in esports and advertising revenue. Additionally, the company's focus on digital transformation, including its cloud-based gaming platform, has contributed to the segment's expansion.
Segment n°2 -> Full Game Downloads
Expected Growth : 3.5 %
What the company do ?
Full Game Downloads from Electronic Arts Inc. allows users to purchase and download full games directly to their console or PC, eliminating the need for physical copies.
Why we expect these perspectives ?
EA's 3.5% growth in full game downloads is driven by increasing demand for digital gaming, expansion of esports and online gaming communities, strategic partnerships with gaming influencers, and a strong pipeline of new game releases, including sports titles and franchises like FIFA, Madden, and The Sims.
Segment n°3 -> Packaged Goods
Expected Growth : 2.5 %
What the company do ?
Packaged Goods from Electronic Arts Inc. refers to physical copies of EA games sold at retail stores, such as FIFA, Madden NFL, and The Sims.
Why we expect these perspectives ?
EA's packaged goods segment growth of 2.5% is driven by increasing demand for sports titles such as Madden NFL and FIFA, as well as the success of new IPs like Star Wars Jedi: Fallen Order. Additionally, the company's focus on digital transformation, including online services and esports, contributes to the segment's growth.
Electronic Arts Inc. Products
| Product Range | What is it ? |
|---|---|
| FIFA | A series of association football video games developed and published by EA Sports, featuring realistic gameplay and authentic teams and players. |
| Madden NFL | An American football video game series developed by EA Tiburon, featuring realistic gameplay and authentic NFL teams and players. |
| The Sims | A series of life simulation video games developed by Maxis, allowing players to create and control virtual characters and build their own virtual worlds. |
| Battlefield | A series of first-person shooter video games developed by DICE, featuring large-scale multiplayer battles and realistic graphics. |
| Apex Legends | A free-to-play battle royale game developed by Respawn Entertainment, featuring fast-paced action and strategic gameplay. |
| EA Sports UFC | A series of mixed martial arts fighting games developed by EA Canada, featuring realistic gameplay and authentic UFC fighters. |
| Star Wars Jedi: Fallen Order | A single-player action-adventure game developed by Respawn Entertainment, set in the Star Wars universe. |
| Origin Access | A subscription-based service offering access to a library of EA games, including new releases and classic titles. |
Electronic Arts Inc.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Electronic Arts Inc. is medium due to the presence of alternative forms of entertainment such as movies, music, and outdoor activities. However, the company's strong brand recognition and loyal customer base mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers is low for Electronic Arts Inc. due to the company's strong brand recognition and the lack of switching costs for customers. The company's products are also highly differentiated, making it difficult for customers to find substitutes.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low for Electronic Arts Inc. due to the company's large size and scale of operations. The company has a diverse supplier base, and no single supplier has significant bargaining power.
Threat Of New Entrants
The threat of new entrants is low for Electronic Arts Inc. due to the high barriers to entry in the video game industry. The company's strong brand recognition, large customer base, and significant investments in research and development make it difficult for new entrants to compete.
Intensity Of Rivalry
The intensity of rivalry is high for Electronic Arts Inc. due to the presence of several established competitors in the video game industry. The company competes with other major players such as Activision Blizzard, Ubisoft, and Take-Two Interactive, which leads to a highly competitive market.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 20.59% |
| Debt Cost | 3.95% |
| Equity Weight | 79.41% |
| Equity Cost | 7.83% |
| WACC | 7.03% |
| Leverage | 25.93% |
Electronic Arts Inc. : Quality Control
Electronic Arts Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| QCOM | QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); … |
| TTWO | Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games, 2K, Private Division, and T2 Mobile Games … |
| NTAP | NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The … |
| CSCO | Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, … |
| IBM | International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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IBM
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Electronic Arts
A-Score
1-Year Total Return ->
6
