EA
Electronic Arts
$209.70
▼ 0.1%Updated Aug 7, 11:30 AM ET
EA at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 36/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 33.9% over the last 12 months
Market Cap
$51.46B
P/E
59.29x
Forward P/E (est.)
71.73x
ROE
14.2%
Revenue Growth
0.9%
EPS Growth
-17.3%
Profit Margin
11.8%
FCF Yield
2.6%
Debt / Equity
0.22x
ROIC
14.0%
Interest Coverage
21.92x
Current Ratio
1.05x
Dividend Yield
0.4%
Implied Growth (rev. DCF)
—
Rating Score
36/100
Electronic Arts (EA) is a large-cap company in the Interactive Home Entertainment industry, part of the Communication Services sector of the S&P 500, with a market value around $51.46B.
In its latest reported year it generated about $7.53B in revenue and $887.00M in net profit.
Our model rates EA Weak (36/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
78.6% average over the last 3 years
±2.2 pts around 75.5% across 10 years
grew in 7 of the last 9 year-over-year periods
positive in 8 of 8 years
14.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what EA's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. EA trades near $209.70, above its 50-day average ($202.41) and 200-day average ($200.86). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. EA's is $0.95 (~0.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month EA found buyers near $201.80 (support) and sellers near $206.00 (resistance); its 52-week range is $146.97–$206.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
1.9%
Revenue moved from $4.84B in 2017 to $7.53B in 2026, a 5.0% compound annual growth rate. The most recent year was roughly flat (0.9%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
79.0%
Operating Margin
15.4%
Net Margin
11.8%
ROE
14.2%
Electronic Arts keeps about 11.8% of each sales dollar as net profit, with a 79.0% gross margin and 15.4% operating margin. Return on equity is 14.2% and return on invested capital about 14.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0.22x
Leverage: debt-to-equity is 0.2x, and operating profit covers interest about 21.9x, with a current ratio of 1.1x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$2.55B
Free Cash Flow
$2.55B
FCF Margin
33.9%
In the latest year Electronic Arts produced about $2.55B of operating cash flow and $2.55B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.4%
Per share (latest FY)
$0.76
Total paid (latest FY)
$191.00M
History on record
6 years
dividend uses 7% of free cash flow
22% of net income paid out
no current raise streak
no cuts in the last 6 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
59.29x
P/S
6.76x
P/B
7.79x
EV / EBITDA
—
EA trades at 59.3x trailing earnings (about 71.7x on estimated forward earnings), 6.8x sales, and 7.8x book value. That is a rich multiple that prices in a lot of future growth.
Where EA sits versus its Communication Services sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How EA stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (95 S&P 500 companies), EA ranks #33 of 95 by our overall rating. It trades at a premium versus the sector on earnings (59.3x P/E vs. 17.1x median) with a lower return on equity (14.2% vs. 14.9%) and slower revenue growth (0.9% vs. 5.3%).
P/E vs sector
59.3x
median 17.1x
ROE vs sector
14.2%
median 14.9%
Growth vs sector
0.9%
median 5.3%
Sector rank
#33
of 95 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 95 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $209.70 today · expected CAGR -7% – 4%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $7.76B | $7.99B | $8.23B | $8.48B | $8.73B |
| Net income | $930.83M | $958.76M | $987.52M | $1.02B | $1.05B |
| EPS | $3.79 | $3.91 | $4.02 | $4.15 | $4.27 |
| Share price (low) | $132.77 | $136.75 | $140.85 | $145.08 | $149.43 |
| Share price (high) | $223.81 | $230.52 | $237.44 | $244.56 | $251.90 |
| CAGR (low–high) | -37% / 7% | -19% / 5% | -12% / 4% | -9% / 4% | -7% / 4% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for EA:
- A conservative balance sheet (debt/equity 0.2x) lowers risk.
- As an established S&P 500 member in Communication Services, it brings scale and a long operating history.
The case against EA:
- Revenue growth is slow (0.9%), limiting the upside engine.
- A rich 59.3x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (36/100).
Valuation risk — at 59.3x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (0.9%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Electronic Arts is a large-cap communication services business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 59.3x earnings, which our model scores Weak (36/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 29 Wall Street analysts covering EA recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-3 pts of buy ratings).
Latest SEC Filings
EA's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
EA — frequently asked questions
Is EA a good stock to buy?
We don't give buy or sell advice. Our model rates Electronic Arts Weak (36/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is EA's rating on The Stocks School?
Electronic Arts currently scores 36/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does EA's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Electronic Arts's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for EA calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this EA analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell EA. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.