ELECTRONIC ARTS INC.

EA
About the company

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; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield.

Country: United StatesPrice: $209.70Market Cap: $52.9B

Investment snapshot

31%positive consensus
Scored 37d ago

Positive

5

BUY / PASS

Neutral / negative

2 / 8

NEUTRAL / FAIL

Median fair value

$50.20

-76.1% vs price

Models with upside

0 / 16

Positive margin of safety

Strongest signal

7 of 11 pass — Lynch, Schloss, Dreman +1 more object

Key risk

All 12 investors flag EA's valuation

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K37d ago
MetricO'Shaughnessy

Systematic Factor Composite

Lynch

GARP

Buffett

Quality Compounder

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Marks

Risk-Aware Value

Munger

Quality Focus

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Greenblatt

Magic Formula

Graham

Defensive Value

VerdictNEUTRALFAILPASSFAILFAILFAILFAILFAILPASSFAILPASSPASSPASSNEUTRALNot rankedFAIL
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/A-1354.2%N/A-439.9%-64.3%N/AN/AN/A-286.6%-241.0%N/AN/A-237.1%N/A-375.4%-354.3%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Debt & Leverage64% pass✓ 10✗ 4▾

    7 of 11 pass — Lynch, Schloss, Dreman +1 more object

    Total Debt / Equity0.22
    ✓Lynch< 0.33
    Cash - Long-term Debt
    ✗LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 0.22, IC: 21.9x
    ✓BuffettD/E < 0.5 AND Interest Coverage > 5x
    Debt Levels0.22
    ✓AkreDebt/Equity < 0.3✓MungerDebt/Equity < 0.5
    Total Debt / Shareholders' Equity0.22x
    ✓SchlossD/E < 1.00x✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓Dreman< 0.8
    Current Assets / Current Liabilities1.05x
    ✗SchlossCurrent ratio >= 1.50x (app cutoff)✗Dreman> 1.5
    Interest Coverage & Debt/EBITDAIC=21.9x, D/EBITDA=1.0x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity0.22
    ✓Ackman<= 1.0
    LT Debt / Total Assets Change0.00% -> 0.00%
    ✓PiotroskiDecreased YoY
    LT Debt vs Net Current Assets
    ✗GrahamLT Debt <= Net Current Assets

Where It Falls Short

  • Valuation0% pass✗ 26▾

    All 12 investors flag EA's valuation

    Revenue / market capitalization+0.1423; #3963/5203 (top 76.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+1.68%; #2641/6251 (top 42.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date+2.86%; #2721/6203 (top 43.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)14.54
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=59.7x
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Price / Book Value per Share7.77x
    ✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
    Price / Tangible Book Value per Share44.52x
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change-1.5%
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS59.7x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E0.07
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / EPS59.7x
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
    Price vs. Trailing Low171% of trailing low ($122.91)
    ✗Templeton<= 120% of trailing low (certified split-adjusted live window)
    P/B or P/E vs. Historical AverageP/E=59.7x, P/B=7.8x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-237.1% (IV=$62.20 vs Price=$209.70)
    ✗Marks>= 20% below intrinsic value
    Valuation ReasonablenessP/E=59.7x, OE Yield=2.3%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share
    ✗Ackman<= 25
    Price / (CFO / Shares)20.6x
    ✗Dreman< 8x
    EBIT / Enterprise Value2.3%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=2.3%, ROC=N/A (invested capital <= 0)
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / 3-yr avg EPS50.6x
    ✗Graham<= 15x
    Price-to-Book Ratio7.8x
    ✗Graham<= 1.5x
    P/E x P/B393.10
    ✗Graham<= 22.5
  • Valuation models0% pass✗ 8▾

    EA overvalued: all 8 models price fair value below $209.70 (median $50.20)

    Lynch fair value$14.42
    ✗Lynch-1354.2% margin vs $209.70
    Pabrai fair value$38.84
    ✗Pabrai-439.9% margin vs $209.70
    Akre fair value$127.66
    ✗Akre-64.3% margin vs $209.70
    Templeton fair value$54.24
    ✗Templeton-286.6% margin vs $209.70
    Marks fair value$61.50
    ✗Marks-241.0% margin vs $209.70
    Dreman fair value$62.20
    ✗Dreman-237.1% margin vs $209.70
    Greenblatt fair value$44.11
    ✗Greenblatt-375.4% margin vs $209.70
    Graham fair value$46.16
    ✗Graham-354.3% margin vs $209.70
  • Profitability13% pass✓ 10✗ 21▾

    13 of 15 flag EA's profitability — Oshaughnessy, Lynch, Buffett +10 more

    Net income / market capitalization+1.68%; #2641/6251 (top 42.2%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)14.54
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR4.1%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE13.1%
    ✗Lynch> 15%
    Net Income Positive (10+ years)15/17 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)13.8%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)15.4% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)1.01
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Margin of SafetyP/E=59.7x, P/B=7.8x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity15.9% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Positive Diluted-EPS Years10/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR4.1% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 77.4% -> 79.0%, operating margin 20.1% -> 15.4%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR4.1% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend20.1% (2023) -> 15.4% (2025)
    ✗TempletonNon-negative operating-margin trend over 3 years
    Discount to Intrinsic Value-237.1% (IV=$62.20 vs Price=$209.70)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency15/17 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue15.4%
    ✓Ackman>= 15%
    Net Income / Shareholders Equity13.1%
    ✗Ackman>= 15%
    Pre-Tax Income / Revenue15.7%
    ✓Dreman>= 8%
    Net Income / Shareholders' Equity13.1%
    ✓Dreman> 12%
    Net Income / Total Assets6.76%
    ✓PiotroskiROA > 0
    ROA Change YoY9.06% -> 6.76% (delta: -2.31%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=19.44%, ROA=6.76%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY79.3% -> 79.0%
    ✗PiotroskiImproved YoY
    EBIT / Enterprise Value2.3%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=2.3%, ROC=N/A (invested capital <= 0)
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Positive EPS (10 years)15/17 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)
    ✗Graham>= 33% growth
  • Efficiency13% pass✓ 3✗ 8▾

    7 of 8 flag EA's efficiency — Akre, Sleep, Munger +4 more

    ROIC (3-5 yr avg)16.8%
    ✓Buffett> 10%
    ROIC - WACC+6.8%
    ✓BuffettPositive (WACC = 10%)
    ROIC (high and growing)FY2023: ROIC=12.8%; FY2024: ROIC=14.5%; FY2025: ROIC=11.1%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC8.7% (RR=78% x ROIC=11.1%)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)2/5 years above 12% (latest 11.1%)
    ✗SleepROIC > 12% in a majority of years
    Return on Invested Capital11.1%
    ✗Munger> 15%
    Current Assets / Current Liabilities1.05
    ✗Dreman> 1.5
    Current Ratio Change YoY0.95 -> 1.05
    ✓PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.60x -> 0.57x
    ✗PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)
    ✗Greenblatt> 25%
    Current Ratio1.05
    ✗Graham>= 2.0
  • Cash Flow20% pass✓ 3✗ 9▾

    8 of 10 flag EA's cash flow — Oshaughnessy, Lynch, Buffett +5 more

    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive and Growing
    ✗LynchPositive and growing
    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    P/E or FCF YieldP/E=59.7x
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Operating Cash Flow - Capital Expenditures
    ✗Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency16/17 years positive
    ✓SleepPositive OCF in >= 70% of available years
    FCF Positive
    ✗MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap
    ✗Ackman>= 4%
    Price / FCF per Share
    ✗Ackman<= 25
    Price / (CFO / Shares)20.6x
    ✗Dreman< 8x
    Operating Cash Flow$2.6B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=19.44%, ROA=6.76%
    ✓PiotroskiCFO/Assets > ROA
  • Growth38% pass✓ 6✗ 7▾

    5 of 8 flag EA's growth — Lynch, Neff, Sleep +2 more

    Basic earnings-growth PEG (dividends excluded)14.54
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR4.1%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    3-5 Year Diluted EPS CAGR4.1% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 77.4% -> 79.0%, operating margin 20.1% -> 15.4%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR6.0%
    ✗SleepCAGR > 7%
    5-Year EPS CAGR4.1% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Positive Net Income Frequency15/17 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth0.9%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency2/5 years with positive EPS growth
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction$-2.08 (2009) -> $3.51 (2025)
    ✓DremanPositive over recent years
    EPS CAGR21.5% CAGR over 14 years
    ✓Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)
    ✗Graham>= 33% growth
  • Verdicts38% pass✓ 5✗ 8▾

    Split decision: 8 FAIL · 5 PASS · 2 NEUTRAL

    Overall verdict
    •OshaughnessyNEUTRAL (Not ranked)✗LynchFAIL (3/7)✓BuffettPASS (4/9)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗SchlossFAIL (3/7)✗NeffFAIL (2/6)✗SleepFAIL (2/6)✓TempletonPASS (4/8)✗MarksFAIL (2/5)✓MungerPASS (2/4)✓AckmanPASS (4/9)✓DremanPASS (6/11)•PiotroskiNEUTRAL (F-Score 6)•GreenblattNot ranked✗GrahamFAIL (1/9)

Business & financials

Company Profile

Industry: Business Services
Size: Large Cap($52.9B)
Revenue: $7.5B+0.9% YoY
Net Income: $887.0M-20.9% YoY

Financial Snapshot

Operating Margin15.4%
Return on Equity13.1%
Debt / Equity0.22
Current Ratio1.05
EPS (Diluted)$3.51−17.4% 1y
Buybacks (1y)$769.0M
Buybacks (2y)$3.3B
Shares Retired0.0% / 5.9% 2y

Similar Companies

MAMastercard Inc
$514.8B
ADPAUTOMATIC DATA PROCESSING INC
$103.7B
PAYXPAYCHEX INC
$35.4B
RBRKRubrik, Inc.
$23.4B

Shareholder Return

Fiscal 2025

Retired 0.0% of shares last year, 5.9% over two.

Buybacks
$769.0M
Dividends
$191.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
4.3% = 1.6% + 2.7%
FY23
62.5% = 58.7% + 2.4%
FY24
−9.2% = −11.9% + 3.1%
FY25
−17.4% = −20.9% + 4.4%
Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$52.9B$30.6Best.$36.3Best.$34.5Best.$36.3Best.
Revenue$7.5B↑1%$7.5B↓1%$7.6B↑2%$7.4B↑6%$7.0B
Operating Income$1.2B↓24%$1.5B$1.5B↑14%$1.3B↑18%$1.1B
Net Income$887.0M↓21%$1.1B↓12%$1.3B↑59%$802.0M↑2%$789.0M
EPS (Diluted)$3.51↓17%$4.25↓9%$4.68↑63%$2.88↑4%$2.76
Gross Margin79.0%79.3%↑3%77.4%↑2%75.9%↑3%73.4%
Operating Margin15.4%↓24%20.4%↑1%20.1%↑12%17.9%↑11%16.1%
ROE13.1%↓25%17.6%↑4%16.9%↑54%11.0%↑6%10.3%
Total Debt$1.5B↓21%$1.9B$1.9B$1.9B$1.9B
Shareholders' Equity$6.8B↑6%$6.4B↓15%$7.5B↑3%$7.3B↓4%$7.6B
Current Ratio1.05↑10%0.95↓31%1.37↑14%1.21↑2%1.18
Debt / Equity0.22↓26%0.30↑18%0.25↓3%0.26↑5%0.25
Operating Cash Flow$2.6B↑23%$2.1B↓10%$2.3B↑49%$1.6B↓18%$1.9B
Free Cash Flow----------

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Business Services

EA vs Peers — Financial Grading

Revenue$7.5BTop 25%
Net Income$887.0MMedian
ROE13.1%Bottom 25%
D/E0.22Top 25%
Op. Margin15.4%Median
Curr. Ratio1.05Bottom 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
Mastercard IncMA$514.8B$568.26$32.8B$15.0B193.5%2.4657.6%1.032/95/94/70/3F-Score 83/11
AUTOMATIC DATA PROCESSING INCADP$103.7B$261.80$21.9B$4.4B73.2%0.8224.2%1.054/95/93/70/3F-Score 65/11
PAYCHEX INCPAYX$35.4B$99.31$6.5B$1.8B47.1%1.2238.6%1.264/96/94/71/3F-Score 76/11
Rubrik, Inc.RBRK$23.4B$113.80$1.3B$348.8M67.1%—-26.2%1.691/90/90/70/3F-Score 42/11
Grab Holdings LtdGRAB$12.7B$3.10$3.4B$268.0M4.0%0.311.9%1.752/92/92/70/3F-Score 44/11
COMMVAULT SYSTEMS INCCVLT$6.1B$148.08$1.2B$70.7M942.8%—6.3%1.951/92/94/70/3F-Score 65/11
ROBERT HALF INC.RHI$3.8B$36.88$5.4B$133.0M10.4%—1.4%1.534/95/91/70/3F-Score 54/11
CSG SYSTEMS INTERNATIONAL INCCSGS$2.3B$80.04$1.2B$55.9M19.7%1.909.7%1.441/93/94/71/3F-Score 64/11