Electronic Arts Inc.

Technology
Computer Software: Prepackaged Software
www.ea.com

Earnings Score
Moat Score

Market Cap $43.59B
PE 42
Debt $NaN
Cash $2.20B
EV $NaN
FCF $1.98B

Earnings

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Sales & Net Margins

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Earnings	$1.05B
EBIT	$1.44B
ROE	14%
ROA	11%
FCF	$1.98B
Equity	$7.41B
Growth Stability	48%
PE	41.68
PEG	-3.5
PB	5.88
P/FCF	22.04
P/S	5.88
Price/Cash	0.05
Net Margins	16%
Gross Margins	78%
Op. Margins	19%
Earnings CAGR	-2%
Sales Growth YoY	6%
Sales Growth QoQ	22%
Sales CAGR	7%
FCF CAGR	6%
Equity CAGR	12%
Earnings Stability	0.02
Earnings Growth YoY	-26%
Earnings Growth QoQ	5%

Earnings CAGR 5Y	-12%
Sales CAGR 5Y	9%
FCF CAGR 5Y	2%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	11%
Equity CAGR 3Y	-1%
Market Cap	$43.59B
Revenue	$7.41B
Dividend Yield	0%
Payout Ratio	19%
Assets	$13.14B
Cash	$2.20B
Shares Outstanding	263M
Earnings Score	6%
Moat Score	93%
Working Capital	1.19B
Current Ratio	1.43
Gross Profit	$5.80B
Shares Growth 3y	-3%
Equity Growth QoQ	0%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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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, FIFA, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

SEC Filings

Direct access to Electronic Arts Inc. (EA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31

Sector Comparison

How does Electronic Arts Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Electronic Arts Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability 2%

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Electronic Arts Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Electronic Arts Inc..

Years

Calculation mode

= $29B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2B	$2.1B	$2.2B	$2.3B	$2.5B	$2.6B	$2.8B	$2.9B	$3.1B	$3.3B	$3.4B	$34B
DCF		$1.9B	$1.8B	$1.8B	$1.7B	$1.6B	$1.6B	$1.5B	$1.4B	$1.4B	$1.3B	$13B
Value	$29B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	19%	26%	20%	20%	21%	55%	15%	11%	11%	17%	16%
ROA	-	13%	16%	17%	13%	14%	8%	8%	10%	12%	11%
ROE	-	34%	24%	23%	19%	41%	11%	10%	11%	17%	14%

Good Net Margins (15.58%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	0.14	0	-	-	-	-	-	-	-	-
Debt over Equity	0.2	0.05	0	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	97%	100%	49%	48%	52%	100%	48%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (48%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	-3%	10%	6%	-4%	12%	2%	24%	6%	2%	9%
Earnings YoY growth	-	32%	-16%	8%	-2%	198%	-72%	-6%	2%	59%	-12%
Equity YoY growth	-	12%	20%	13%	16%	40%	5%	-3%	-4%	3%	-1%
FCF YoY growth	-	16%	12%	26%	-10%	16%	9%	-5%	-22%	58%	2%