Is Electronic Arts Stock a Good Investment?
Electronic Arts Investment Advice | EA |
- Examine Electronic Arts' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Electronic Arts' leadership team and their track record. Good management can help Electronic Arts navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Home Entertainment space and any emerging trends that could impact Electronic Arts' business and its evolving consumer preferences.
- Compare Electronic Arts' performance and market position to its competitors. Analyze how Electronic Arts is positioned in terms of product offerings, innovation, and market share.
- Check if Electronic Arts pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Electronic Arts' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Electronic Arts stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Electronic Arts is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Electronic Arts Stock
Researching Electronic Arts' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Electronic Arts was currently reported as 28.15. The company has Price/Earnings To Growth (PEG) ratio of 1.94. Electronic Arts last dividend was issued on the 27th of November 2024. The entity had 2:1 split on the 18th of November 2003.
To determine if Electronic Arts is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Electronic Arts' research are outlined below:
| Electronic Arts generated a negative expected return over the last 90 days | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| On 18th of December 2024 Electronic Arts paid $ 0.19 per share dividend to its current shareholders | |
| Latest headline from news.google.com: Is Electronic Arts the Best Depressed Stock to Invest in Now - Yahoo Finance |
Electronic Arts Quarterly Liabilities And Stockholders Equity |
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Electronic Arts uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Electronic Arts. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Electronic Arts' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 30th of January 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 14th of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Electronic Arts' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Electronic Arts' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-11-09 | 2009-09-30 | 0.07 | 0.06 | -0.01 | 14 | ||
1999-10-21 | 1999-09-30 | 0.06 | 0.07 | 0.01 | 16 | ||
1999-05-05 | 1999-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1998-07-22 | 1998-06-30 | 0.01 | 0.02 | 0.01 | 100 | ||
1996-10-23 | 1996-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2010-05-11 | 2010-03-31 | 0.05 | 0.07 | 0.02 | 40 | ||
2001-07-27 | 2001-06-30 | -0.17 | -0.15 | 0.02 | 11 | ||
2000-10-25 | 2000-09-30 | -0.15 | -0.13 | 0.02 | 13 |
Electronic Arts Target Price Consensus
Electronic target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Electronic Arts' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 25 | Buy |
Most Electronic analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Electronic stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Electronic Arts, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationElectronic Arts Target Price Projection
Electronic Arts' current and average target prices are 122.91 and 162.13, respectively. The current price of Electronic Arts is the price at which Electronic Arts is currently trading. On the other hand, Electronic Arts' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Electronic Arts Market Quote on 3rd of February 2025
Target Price
Analyst Consensus On Electronic Arts Target Price
Electronic Arts Analyst Ratings
Electronic Arts' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Electronic Arts stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Electronic Arts' financials, market performance, and future outlook by experienced professionals. Electronic Arts' historical ratings below, therefore, can serve as a valuable tool for investors.Know Electronic Arts' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Electronic Arts is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Electronic Arts backward and forwards among themselves. Electronic Arts' institutional investor refers to the entity that pools money to purchase Electronic Arts' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Macquarie Group Ltd | 2024-09-30 | 3.3 M | Alliancebernstein L.p. | 2024-09-30 | 3.2 M | Amvescap Plc. | 2024-09-30 | 3.1 M | Jpmorgan Chase & Co | 2024-09-30 | 2.9 M | Bank Of America Corp | 2024-09-30 | 2.9 M | Northern Trust Corp | 2024-09-30 | 2.9 M | Amundi Usd | 2024-09-30 | 2.9 M | Amundi Usd | 2024-09-30 | 2.9 M | Vanguard Group Inc | 2024-09-30 | 29 M | Blackrock Inc | 2024-09-30 | 28.5 M | Public Investment Fund | 2024-09-30 | 24.8 M |
Electronic Arts' market capitalization trends
The company currently falls under 'Large-Cap' category with a market capitalization of 32.24 B.Market Cap |
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Electronic Arts' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.19 | 0.10 | |
| Return On Capital Employed | 0.17 | 0.15 | |
| Return On Assets | 0.11 | 0.08 | |
| Return On Equity | 0.19 | 0.13 |
Determining Electronic Arts' profitability involves analyzing its financial statements and using various financial metrics to determine if Electronic Arts is a good buy. For example, gross profit margin measures Electronic Arts' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Electronic Arts' profitability and make more informed investment decisions.
Electronic Arts' Earnings Breakdown by Geography
Please note, the presentation of Electronic Arts' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Electronic Arts' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Electronic Arts' management manipulating its earnings.
Evaluate Electronic Arts' management efficiency
Electronic Arts has Return on Asset (ROA) of 0.0727 % which means that for every $100 of assets, it generated a profit of $0.0727. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.1396 %, which means that it produced $0.1396 on every 100 dollars invested by current stockholders. Electronic Arts' management efficiency ratios could be used to measure how well Electronic Arts manages its routine affairs as well as how well it operates its assets and liabilities. As of February 3, 2025, Return On Tangible Assets is expected to decline to 0.1. In addition to that, Return On Capital Employed is expected to decline to 0.15. At present, Electronic Arts' Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 11.1 B, whereas Other Current Assets are forecasted to decline to about 277 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 25.04 | 26.30 | |
| Tangible Book Value Per Share | 5.78 | 4.14 | |
| Enterprise Value Over EBITDA | 20.24 | 12.07 | |
| Price Book Value Ratio | 5.51 | 5.42 | |
| Enterprise Value Multiple | 20.24 | 12.07 | |
| Price Fair Value | 5.51 | 5.42 | |
| Enterprise Value | 4.2 B | 4.4 B |
Evaluating the management effectiveness of Electronic Arts allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Electronic Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Basic technical analysis of Electronic Stock
As of the 3rd of February, Electronic Arts shows the Mean Deviation of 1.23, variance of 5.77, and Standard Deviation of 2.4. Electronic Arts technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Electronic Arts' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Electronic Arts insiders, such as employees or executives, is commonly permitted as long as it does not rely on Electronic Arts' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Electronic Arts insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Electronic Arts' Outstanding Corporate Bonds
Electronic Arts issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Electronic Arts uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Electronic bonds can be classified according to their maturity, which is the date when Electronic Arts has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| EA 185 15 FEB 31 Corp BondUS285512AE93 | View |
Understand Electronic Arts' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Electronic Arts' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | 21.05 | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (1,095) | |||
| Standard Deviation | 2.4 | |||
| Variance | 5.77 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.43) | |||
| Treynor Ratio | 21.04 | |||
| Maximum Drawdown | 19.12 | |||
| Value At Risk | (2.32) | |||
| Potential Upside | 1.71 | |||
| Skewness | (5.04) | |||
| Kurtosis | 34.47 |
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | 21.05 | |||
| Mean Deviation | 1.23 | |||
| Coefficient Of Variation | (1,095) | |||
| Standard Deviation | 2.4 | |||
| Variance | 5.77 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.43) | |||
| Treynor Ratio | 21.04 | |||
| Maximum Drawdown | 19.12 | |||
| Value At Risk | (2.32) | |||
| Potential Upside | 1.71 | |||
| Skewness | (5.04) | |||
| Kurtosis | 34.47 |
Consider Electronic Arts' intraday indicators
Electronic Arts intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Electronic Arts stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Electronic Arts Corporate Filings
8K | 22nd of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 16th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 1st of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Electronic Stock media impact
Far too much social signal, news, headlines, and media speculation about Electronic Arts that are available to investors today. That information is available publicly through Electronic media outlets and privately through word of mouth or via Electronic internal channels. However, regardless of the origin, that massive amount of Electronic data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Electronic Arts news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Electronic Arts relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Electronic Arts' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Electronic Arts alpha.
Electronic Arts Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Electronic Arts can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Electronic Arts Historical Investor Sentiment
Investor biases related to Electronic Arts' public news can be used to forecast risks associated with an investment in Electronic. The trend in average sentiment can be used to explain how an investor holding Electronic can time the market purely based on public headlines and social activities around Electronic Arts. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Electronic Arts' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Electronic Arts and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Electronic Arts news discussions. The higher the estimate score, the more favorable the investor's outlook on Electronic Arts.
Electronic Arts Maximum Pain Price Across March 21st 2025 Option Contracts
Electronic Arts' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Electronic Arts close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Electronic Arts' options.
Electronic Arts Corporate Management
| Mihir Vaidya | Chief Arts | Profile | |
| Marija RadulovicNastic | Chief Development | Profile | |
| Andrew Uerkwitz | Vice Relations | Profile | |
| Christopher Bruzzo | Chief Marketing Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electronic Arts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.24) | Dividend Share 0.76 | Earnings Share 3.9 | Revenue Per Share | Quarterly Revenue Growth 0.058 |
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Electronic Arts' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.