Electronic Arts Inc.
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing, and simulation;…
What to know about EA
Electronic Arts Inc. is a large Communication Services company with a mixed financial profile. It scores well on risk and health, but sentiment is worth keeping an eye on.
Should you consider EA?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Electronic Arts Inc. is a large-cap Communication Services company with a mixed overall financial profile — it ranks near the bottom of Communication Services stocks (19 of 24).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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Risk is relatively low — the stock tends to be less volatile than the broader market, which typically means a smoother ride during uncertain periods.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Communication Services sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how EA compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 57.59 | Below avg |
| Forward P/E | 21.05 | Average |
| PEG Ratio | 1.26 | Above avg |
| Price to Sales | 6.73 | Below avg |
| Price to Book | 7.49 | Average |
| EV/EBITDA | 33.52 | Below avg |
| Earnings Yield | 1.74% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 78.97% | Top 25% |
| Operating Margin | 24.01% | Above avg |
| Net Profit Margin | 11.78% | Average |
| Return on Equity | 13.49% | Average |
| Return on Invested Capital | 5.70% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 11.90% | Above avg |
| Revenue Growth (3Y CAGR) | 0.47% | Below avg |
| EPS Growth (YoY) | 85.30% | Top 25% |
| Free Cash Flow Growth | 25.03% | Above avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.05 | Average |
| Debt to Equity | 0.27 | Top 25% |
| Interest Coverage | 23.26 | Top 25% |
| Altman Z-Score | 6.38 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | -10.99% | Average |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 4.58% | Above avg |
| OCF to Sales | 33.90% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.65 | Above avg |
| Volatility (30-Day) | 3.52% | Top 25% |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 4.38% | Average |
| Avg. Analyst Rating | 2.89 | Below avg |
| Target Upside % | 0.32% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 50.69B | Above avg |
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