Electronic Arts Inc Stock Research

Market Summary

USD113.53+2.15

Market Closed

1.93%

EA Alerts

2 major insider sales recently.
Big jump in Earnings (Y/Y)

EA Stock Price

EA RSI Chart

EA Valuation

Market Cap

31.2B

Price/Earnings (Trailing)

23.96

Price/Sales (Trailing)

4.23

EV/EBITDA

14.47

Price/Free Cashflow

22.67

EA Price/Sales (Trailing)

EA Profitability

Operating Margin

76.10%

EBT Margin

20.35%

Return on Equity

17.26%

Return on Assets

9.67%

Free Cashflow Yield

4.41%

EA Fundamentals

EA Revenue

Revenue (TTM)

7.4B

Revenue Y/Y

5.14%

Revenue Q/Q

-1.21%

EA Earnings

Earnings (TTM)

1.3B

Earnings Y/Y

209.09%

Earnings Q/Q

-44.11%

Price Action

52 Week Range

108.53142.60

(Low)(High)

Last 7 days

-0.8%

Last 30 days

-1.6%

Last 90 days

-8.5%

Trailing 12 Months

-7.7%

EA Financial Health

Current Ratio

1.23

EA Investor Care

Dividend Yield

0.55%

Dividend/Share (TTM)

0.68

Buy Backs (1Y)

2.83%

Diluted EPS (TTM)

3.7

Peers (Alternatives to Electronic Arts)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
NFLX	138.1B	31.6B	-15.28%	-11.62%	30.74	4.37	6.46%	-12.20%
ATVI	62.5B	7.5B	3.49%	0.28%	41.28	8.3	-14.48%	-43.94%
EA	31.2B	7.4B	-1.61%	-7.67%	23.96	4.23	13.28%	56.80%
TTWO	19.5B	4.8B	1.73%	-20.70%	-48.26	4.03	41.58%	-176.72%
MID-CAP
WWE	6.3B	1.3B	-4.49%	49.32%	32.07	4.86	17.93%	10.25%
MSGS	4.4B	-	-3.27%	12.39%	78.75	5.31	97.57%	3.36%
TRIP	2.4B	1.5B	-24.37%	-23.30%	121.77	1.63	65.41%	113.51%
ZNGA	-	-	-8.50%	-21.80%	-	-	-	-
SMALL-CAP
MSGE	1.9B	2.0B	-11.56%	-31.40%	-20.33	0.98	52.20%	29.12%
CNK	1.5B	2.5B	6.77%	-21.19%	-5.61	0.62	62.51%	35.86%
SCPL	399.3M	671.0M	3.81%	30.81%	17.83	0.6	10.71%	16.06%
CIDM	83.6M	72.3M	-26.90%	-32.70%	-9.35	1.16	52.38%	-305.26%
DLPN	18.7M	6.2M	-13.46%	-50.28%	-4.48	3.04	-31.96%	11.42%

Financials for Electronic Arts

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	1.3%	7,377	7,285	7,207	6,991	6,512
Cost Of Revenue	-3.5%	1,763	1,826	1,858	1,859	1,759
Gross Profit	2.8%	5,614	5,459	5,349	5,132	4,753
Operating Expenses	-0.8%	4,092	4,124	4,101	4,003	3,814
S&GA Expenses	-3.7%	968	1,005	1,005	961	912
EBITDA	9.1%	2,005	1,838	1,567	1,293	-
EBITDA Margin	7.7%	0.27*	0.25*	0.22*	0.20*	-
Earnings Before Taxes	14.6%	1,501	1,310	1,209	1,081	890
EBT Margin	13.2%	0.20*	0.18*	0.17*	0.15*	-
Interest Expenses	NaN%	0.00	0.00	0.00	-	-
Net Income	11.8%	1,303	1,165	1,127	979	831
Net Income Margin	10.5%	0.18*	0.16*	0.14*	0.11*	-
Free Cahsflow	-23.0%	1,377	1,788	1,964	1,899	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	3.0%	13,470	13,079	13,192	13,800	13,930
Current Assets	11.6%	3,842	3,442	3,517	4,151	4,358
Cash Equivalents	-19.4%	2,202	2,732	2,732	2,732	2,670
Net PPE	4.1%	553	531	545	550	522
Goodwill	0.1%	5,380	5,375	5,382	5,387	5,389
Liabilities	12.1%	5,919	5,281	5,551	6,175	6,313
Current Liabilities	21.6%	3,113	2,561	2,833	3,513	3,630
Shareholder's Equity	-3.2%	7,551	7,798	7,641	7,625	7,617
Retained Earnings	-1.0%	7,585	7,658	7,567	7,607	7,608
Additional Paid-In Capital	NaN%	-	-	-	-	-
Shares Outstanding	-1.1%	275	278	279	280	283

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-23.0%	1,377	1,788	1,964	1,899	1,826
Share Based Compensation	2.3%	531	519	528	528	512
Cashflow From Investing	-6.0%	-213	-201	-1,058	-2,804	-3,337
Cashflow From Financing	1.5%	-1,593	-1,617	-1,617	-1,620	-1,825
Dividend Payments	2.0%	206	202	197	193	194
Buy Backs	0%	1,290	1,290	1,290	1,295	1,300

Risks for EA

What is the probability of a big loss on EA?

53.9%

Probability that Electronic Arts stock will be more than 20% underwater in next one year

19.2%

Probability that Electronic Arts stock will be more than 30% underwater in next one year.

15.8%

Probability that Electronic Arts stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does EA drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Electronic Arts was unfortunately bought at previous high price.

Drawdowns

Returns for EA

Cumulative Returns on EA

19.5%

10-Year Cumulative Returns

7.9%

7-Year Cumulative Returns

-2.6%

5-Year Cumulative Returns

5.0%

3-Year Cumulative Returns

What are the long-term rolling returns for EA?

FIve years rolling returns for Electronic Arts.

Annualized Returns

Which funds bought or sold EA recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-13	Claro Advisors LLC	new	-	265,255	265,255	0.09%
2023-03-10	BAILLIE GIFFORD & CO	reduced	-99.48	-4,079,280	22,725	-%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	added	15.54	5,076,320	28,148,300	0.03%
2023-03-07	Great Lakes Retirement, Inc.	new	-	460,632	460,632	0.12%
2023-03-06	Rockefeller Capital Management L.P.	added	6.81	68,000	604,000	-%
2023-03-02	OLIVER LAGORE VANVALIN INVESTMENT GROUP	new	-	9,774	9,774	0.01%
2023-03-02	LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS LLP/MA	new	-	43,863	43,863	-%
2023-02-28	Voya Investment Management LLC	added	15.79	4,590,280	25,209,300	0.04%
2023-02-27	HARVEY CAPITAL MANAGEMENT INC	reduced	-0.19	267,032	5,214,030	2.18%
2023-02-27	Parallax Volatility Advisers, L.P.	unchanged	-	41.00	9,041	-%

Latest Funds Activity

Are funds buying EA calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own EA

No. of Funds

Electronic Arts News

Schedule 13G FIlings of Electronic Arts

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	public investment fund	5.8%	16,011,844	SC 13G/A
Feb 09, 2023	vanguard group inc	7.93%	21,903,490	SC 13G/A
Jan 27, 2023	blackrock inc.	9.0%	24,801,166	SC 13G/A
Jan 25, 2023	blackrock inc.	9.0%	24,801,166	SC 13G/A
Jan 20, 2023	state street corp	4.60%	12,702,890	SC 13G/A
Feb 14, 2022	public investment fund	5.0%	14,210,000	SC 13G
Feb 11, 2022	state street corp	5.04%	14,242,761	SC 13G/A
Feb 09, 2022	vanguard group inc	7.66%	21,652,850	SC 13G/A
Feb 01, 2022	blackrock inc.	8.3%	23,528,573	SC 13G/A
Feb 10, 2021	vanguard group inc	7.71%	22,368,233	SC 13G/A

EA Fair Value

Electronic Arts fair value in different scenarios

The table shows the Fair Value estimates for Electronic Arts for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	56.29 -50.42%	76.52 -32.60%	98.87 -12.91%	132.41 16.63%	179.37 57.99%
Current Inflation	52.43 -53.82%	69.79 -38.53%	88.52 -22.03%	116.73 2.82%	156.22 37.60%
Very High Inflation	47.61 -58.06%	61.65 -45.70%	76.29 -32.80%	98.51 -13.23%	129.60 14.15%

Historical Electronic Arts Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Electronic Arts

View All Filings

Date Filed	Form Type	Document
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Feb 14, 2023	SC 13G/A	Major Ownership Report
Feb 09, 2023	SC 13G/A	Major Ownership Report
Feb 07, 2023	10-Q	Quarterly Report
Feb 03, 2023	4	Insider Trading
Feb 03, 2023	4	Insider Trading
Feb 03, 2023	4	Insider Trading
Feb 03, 2023	4	Insider Trading

Latest Insider Trading transactions for EA

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-01	Miele Laura	sold	-166,470	110	-1,500	chief operating officer
2023-03-01	Singh Vijayanthimala	sold	-88,784	110	-800	chief people officer
2023-03-01	Bruzzo Chris	sold	-221,960	110	-2,000	chief experience officer
2023-02-01	Huber Jeff	acquired	20,549	116	176	-
2023-02-01	Simonson Richard A	acquired	24,753	116	212	-
2023-02-01	Bruzzo Chris	sold	-228,935	114	-2,000	chief experience officer
2023-02-01	Miele Laura	sold	-171,704	114	-1,500	chief operating officer
2023-02-01	Ueberroth Heidi	acquired	19,966	116	171	-
2023-02-01	Gonzalez Rachel A	acquired	19,265	116	165	-
2023-02-01	Singh Vijayanthimala	sold	-93,424	116	-800	chief people officer

About Electronic Arts

Andrew P. Wilson

www.ea.com

11000

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 Plants vs. Zombies brands; and license games from others, including FIFA, Madden NFL, UFC, NHL, Formula 1, and Star Wars brands. The company also provides advertising services; and 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.

EA Income Statement

2022-09-30

Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net revenue	$ 1,904	$ 1,826	$ 3,671	$ 3,377
Cost of revenue	462	494	776	809
Gross profit	1,442	1,332	2,895	2,568
Operating expenses:
Research and development	565	553	1,137	1,068
Marketing and sales	233	233	467	423
General and administrative	174	176	341	345
Amortization of intangibles	43	30	82	70
Total operating expenses	1,015	992	2,027	1,906
Operating income (loss)	427	340	868	662
Interest and other income (expense), net	0	(14)	(5)	(28)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	427	326	863	634
Provision for income taxes	128	32	253	136
Net income (loss)	$ 299	$ 294	$ 610	$ 498
Earnings (loss) per share:
Earnings Per Share, Basic	$ 1.08	$ 1.03	$ 2.19	$ 1.75
Earnings Per Share, Diluted	$ 1.07	$ 1.02	$ 2.18	$ 1.73
Number of shares used in computation:
Basic	278	285	279	285
Diluted	279	287	280	288

EA Balance Sheet

2022-09-30

Condensed Consolidated Balance Sheets - USD ($)
$ in Millions

Sep. 30, 2022

Mar. 31, 2022

Current assets:

Cash and cash equivalents

$ 1,539

$ 2,732

Short-term investments

335

330

^[1]

Receivables, net

919

650

^[1]

Total other current assets

649

439

^[1]

Total current assets

3,442

4,151

^[1]

Property and equipment, net

531

550

^[1]

Goodwill

5,375

5,387

^[1]

Other assets

525

507

^[1]

TOTAL ASSETS

13,079

13,800

^[1]

Current liabilities:

Accounts payable

136

101

^[1]

Accrued and other current liabilities

1,034

1,388

^[1]

Deferred net revenue (online-enabled games)

1,391

2,024

^[1]

Total current liabilities

2,561

3,513

^[1]

Senior notes, net

1,879

1,878

^[1]

Income tax obligations

478

386

^[1]

Other liabilities

362

397

^[1]

TOTAL LIABILITIES

5,281

6,175

^[1]

Commitments and contingencies (See Note 11)

^[1]

STOCKHOLDERS' EQUITY:

Common stock, $0.01 par value. 1,000 shares authorized; 288 and 288 shares issued and outstanding, respectively

^[1]

Additional paid-in capital

^[1]

Retained earnings

7,658

7,607

^[1]

Accumulated other comprehensive loss

137

^[1]

Total stockholders' equity

7,798

7,625

^[1]

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

13,079

13,800

^[1]

Deferred Income Tax Liabilities, Net

^[1]

Deferred Income Tax Assets, Net

2,395

2,243

^[1]

Intangible Assets, Net (Excluding Goodwill)

$ 811

$ 962

^[1]

[1]	Derived from audited Consolidated Financial Statements.