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About The Company

CEO

Mr. Andrew Wilson

Market Cap

34.26 Billion USD

Sector

Communication Services

Website

https://www.ea.com

Last Update

2/22/2024, 12:00:00 PM

Description

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

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Overview

Value

37

Growth

41

Health

53

Management

37

Analyst Opinion

86

Total

47

All Scores Out Of 100

Best Features

  • Earnings growth has improved recently
  • Has a low level of debt
  • Has a history of share buybacks
  • Low risk of bankruptcy
  • Liked by analysts
  • Has strong dividend growth
  • Low preportion of income is paid as dividend

Risk Factors

  • Disliked by Twitter users
  • Price-to-earnings ratio of 34.0 is higher than the market average (19.6x)

Market Peers

EA

Key Figures

PE Ratio (TTM)

33.97

Margin Of Safety (DCF)

12.95%

Revenue Growth (5 Year Average)

9.08%

Ratings Consensus

Strong Buy

Share Buybacks

1.29%

Dividend Yeild (TTM)

0.57%

Valuation

Value Score

37

  • Free-cashflow-yeild of 5.96% is better than the market average (4.7%)
  • Estimated intrinsic-value of 152.94 USD is higher than current price ( 128.14 USD)
  • Price-to-earnings ratio of 34.0 is higher than the market average (19.6x)
  • Margin-of-safety of 12.95% is worse than the market average (17.95%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 123.9 USD

Current Price: 135.4 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

33.97x

Free Cashflow Yeild

5.96%

PE/Earnings Growth

N/A

Price/Book

4.81x

Growth

Growth Score

41

  • Earnings growth has improved this year
  • Free Cashflow growth has improved this year
  • 5 Year Average Revenue growth of 9.08% is lower than the market average (10.97%)
  • Revenue growth has slowed this year
  • 5 Year Average Earnings growth of 2.70% is lower than the market average (14.48%)
  • 5 Year Average Free Cashflow growth of 12.22% is lower than the market average (12.35%)

Revenue Growth

9.08%

Earnings Growth

2.70%

Cashflow Growth

12.22%

Health

Health Score

53

  • Low risk of bankruptcy
  • Has a low level of debt
  • Assets cover liabilities
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow

Altman Z Score

5.40

Piostroski Score

8.00

Debt/Equity

0.26x

Current Assets/Liabilities

1.18x

Free Cashflow/Total Debt

0.87x

Debt/Capital

0.47x

Dividend

Secure Dividend Score

68

  • Dividend is likely safe
  • Long term dividend payout ratio of 6.03% is considered good
  • Payout ratio (TTM) of 19.09% is lower than the average (40%)
  • Dividends have shown growth over the last 5 years
  • Dividend yeild of 0.57% is less than the market average (1.85%)
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

0.57%

Dividend Growth

24.63%

Payout Ratio (Earnings)

19.09%

Payout Ratio (Cashflow)

9.55%

Management

Management Score

37

  • Has a history of returning value to shareholders through stock buybacks
  • Has returned higher dividends when earnings have risen
  • Return-on-capital-employed of 12.19% is higher than the market average (10%)
  • Has repurchased shares when overvalued
  • Return-on-equity of 9.75% is lower than the market average (15%)

Average Buybacks/Dilution

1.29%

Recent Buybacks/Dilution

-5.86%

5 Year Price Volitility

14.96%

Return On Assets

5.39%

Return On Capital Employed

12.19%

Return On Equity

9.75%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

27

Twitter Sentiment

0.00

Stocktwits Sentiment

54.00

Analysts

Analyst Opinion

86

  • Ratings consensus is Strong Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Electronic Arts Inc.

Currency

USD

Beta

0.866461

Vol Avg

2113465

Ceo

Mr. Andrew Wilson

Cik

0000712515

Cusip

285512109

Exchange

NASDAQ Global Select

Full Time Employees

13400

Industry

Electronic Gaming & Multimedia

Sector

Communication Services

Ipo Date

1989-09-20

Address

209 Redwood Shores Parkway

City

Redwood City

State

CA

Country

US

Zip

94065

Phone

650 628 1500

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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