Electronic Arts Inc. (EA)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Electronic Arts is a leading interactive entertainment publisher, with sports franchises and live services that can generate repeat spending. In the latest reported quarter, 2026-Q2, revenue was $2.0B and net income was $397.0M, a 19.99% margin—solid evidence the business converts sales into profits. Trailing free cash flow is $2.1B, a 4.1% FCF yield, which is respectable but not compelling at a $49.9B market cap. The balance sheet looks conservative: D/E 0.26 and Altman Z-Score 6.56. Returns are mixed: ROE 16.46% but ROCE 7.23%, suggesting capital intensity or goodwill may mute true returns. The supplied data show revenue growth of 18.85% and profit growth of 97.51% (period not specified), while PEG 0.61 suggests the price may be reasonable relative to growth if it persists. However, at the 2026-08-10 close of $209.70, FairStock’s P/E is 59.74, P/B 7.77, and EV/EBITDA 27.32. Its Graham Number is only $47.10, a -345.22% margin of safety, so on asset- and earnings-based value this is expensive. Piotroski F-Score is 3/9, indicating weak recent fundamental signals, and FairStock Score is 50/100. The Lynch category is none because only 0 years of filed results are available; 3 are needed. The moat rests on hit sports titles and live services, but gaming is hit-driven and competitive. I would want a wider margin of safety, stronger ROCE, and consistent cash returns before calling this a classic value opportunity.

In plain English: Electronic Arts makes video games and related services for consoles, computers, and phones. The business is profitable and produces cash, with the latest quarter showing $2.0B in revenue and $397M in net income. The stock price looks high compared with the company's current earnings and accounting value, so much of the price depends on future growth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-08-10 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer