Electronic Arts EA
Electronic Arts is a video game developer and publisher generating revenue mainly from AAA titles and subscriptions/microtransactions in franchises like FIFA, Madden, and Apex Legends. EA shows solid fundamentals with a 23.39% ROIC, 79.88% gross margin, and 97.5% earnings growth, though its valuation is demanding (P/E 59.74) and rising rates pressure its multiple.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Electronic Arts is a video game developer and publisher generating revenue mainly from AAA titles and subscriptions/microtransactions in franchises like FIFA, Madden, and Apex Legends. EA shows solid fundamentals with a 23.39% ROIC, 79.88% gross margin, and 97.5% earnings growth, though its valuation is demanding (P/E 59.74) and rising rates pressure its multiple.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.4 |
| Quality / Moat | 8.5 |
| Valuation | 4.5 |
| Growth | 9.0 |
| Dividend | 3.8 |
| Risk & Context | 7.4 |
OVERALL SCORE: 7.1/10
Context and risks
The rise in 10-year rates (5.17%) and geopolitical risk premium affect EA as a long-duration company (P/E 59.7), but its net cash balance and 99th percentile 52-week position mitigate the impact. Regulatory risk on loot boxes and microtransactions in the US and Europe is a structural factor, though no material active litigation exists.
News considered in the analysis
- Will EA’s €250 Million Bundesliga Rights Deal Reshape Its Live-Services Football Narrative (EA)? — Refuerza la estrategia de live-services en fútbol, pero el impacto financiero es moderado y ya parcialmente descontado.
- Is Electronic Arts (EA) Pricey Following The Madden NFL 27 Launch? — Análisis de valoración sin información nueva; el lanzamiento ya está en el precio.
- Will the future of gaming be powered by upstart indie developers? — Artículo de opinión sobre tendencias de la industria, sin impacto directo en EA.
- Why indie games are the next big tech investment: Gaming CEO — Opinión de un CEO sobre el sector indie, sin relevancia material para EA.
- Akamai beats quarterly estimates on cloud infrastructure demand — Noticia sobre otra empresa (Akamai), sin impacto directo en EA.
Verdict: Hold; quality and growth justify the premium, but valuation limits near-term upside.
Main risk: The demanding valuation (P/E 59.74) and reliance on key franchises like FIFA and Madden for live-services growth, which could be affected by regulatory changes on microtransactions.
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