ELECTRONIC ARTS INC (1EA.MI) Fundamental Analysis & Valuation

BIT:1EA • US2855121099

Current stock price

171.92 EUR
+11.1 (+6.9%)
Last:

This 1EA.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. 1EA.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1EA was profitable.
  • 1EA had a positive operating cash flow in the past year.
  • In the past 5 years 1EA has always been profitable.
  • In the past 5 years 1EA always reported a positive cash flow from operatings.
1EA.MI Yearly Net Income VS EBIT VS OCF VS FCF1EA.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • The Return On Assets of 1EA (5.12%) is better than 79.59% of its industry peers.
  • Looking at the Return On Equity, with a value of 11.05%, 1EA is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
  • 1EA's Return On Invested Capital of 8.44% is fine compared to the rest of the industry. 1EA outperforms 77.55% of its industry peers.
  • 1EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is in line with the industry average of 10.16%.
Industry RankSector Rank
ROA 5.12%
ROE 11.05%
ROIC 8.44%
ROA(3y)8.17%
ROA(5y)7.3%
ROE(3y)15.16%
ROE(5y)13.3%
ROIC(3y)12.06%
ROIC(5y)10.47%
1EA.MI Yearly ROA, ROE, ROIC1EA.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With a decent Profit Margin value of 9.31%, 1EA is doing good in the industry, outperforming 75.51% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1EA has declined.
  • With an excellent Operating Margin value of 13.63%, 1EA belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1EA has declined.
  • 1EA has a better Gross Margin (78.26%) than 71.43% of its industry peers.
  • 1EA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.63%
PM (TTM) 9.31%
GM 78.26%
OM growth 3Y7.96%
OM growth 5Y-4.32%
PM growth 3Y10%
PM growth 5Y-22.83%
GM growth 3Y2.54%
GM growth 5Y1.05%
1EA.MI Yearly Profit, Operating, Gross Margins1EA.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. 1EA.MI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1EA is creating some value.
  • Compared to 1 year ago, 1EA has less shares outstanding
  • The number of shares outstanding for 1EA has been reduced compared to 5 years ago.
  • The debt/assets ratio for 1EA is higher compared to a year ago.
1EA.MI Yearly Shares Outstanding1EA.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
1EA.MI Yearly Total Debt VS Total Assets1EA.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 5.60 indicates that 1EA is not in any danger for bankruptcy at the moment.
  • 1EA's Altman-Z score of 5.60 is amongst the best of the industry. 1EA outperforms 89.80% of its industry peers.
  • The Debt to FCF ratio of 1EA is 0.82, which is an excellent value as it means it would take 1EA, only 0.82 years of fcf income to pay off all of its debts.
  • 1EA has a better Debt to FCF ratio (0.82) than 89.80% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that 1EA is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.24, 1EA is doing good in the industry, outperforming 77.55% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Altman-Z 5.6
ROIC/WACC0.83
WACC10.12%
1EA.MI Yearly LT Debt VS Equity VS FCF1EA.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.93 indicates that 1EA may have some problems paying its short term obligations.
  • With a Current ratio value of 0.93, 1EA perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
  • A Quick Ratio of 0.93 indicates that 1EA may have some problems paying its short term obligations.
  • 1EA's Quick ratio of 0.93 is in line compared to the rest of the industry. 1EA outperforms 55.10% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.93
1EA.MI Yearly Current Assets VS Current Liabilites1EA.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. 1EA.MI Growth Analysis

3.1 Past

  • 1EA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
  • 1EA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
  • The Revenue has decreased by -0.56% in the past year.
  • 1EA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.15% yearly.
EPS 1Y (TTM)9.02%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%70.32%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%

3.2 Future

  • Based on estimates for the next years, 1EA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
  • Based on estimates for the next years, 1EA will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
EPS Next Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y11.31%
Revenue Next Year12.98%
Revenue Next 2Y8.21%
Revenue Next 3Y6.13%
Revenue Next 5Y9%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
1EA.MI Yearly Revenue VS Estimates1EA.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
1EA.MI Yearly EPS VS Estimates1EA.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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5

4. 1EA.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • 1EA is valuated quite expensively with a Price/Earnings ratio of 26.49.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 75.51% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of 1EA to the average of the S&P500 Index (27.35), we can say 1EA is valued inline with the index average.
  • A Price/Forward Earnings ratio of 21.01 indicates a rather expensive valuation of 1EA.
  • Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than 69.39% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.23, 1EA is valued at the same level.
Industry RankSector Rank
PE 26.49
Fwd PE 21.01
1EA.MI Price Earnings VS Forward Price Earnings1EA.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 1EA's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 69.39% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.61
EV/EBITDA 36.92
1EA.MI Per share data1EA.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • 1EA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • 1EA has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as 1EA's earnings are expected to grow with 15.23% in the coming years.
PEG (NY)0.89
PEG (5Y)3.87
EPS Next 2Y18.68%
EPS Next 3Y15.23%

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3

5. 1EA.MI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.38%, 1EA is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.13, 1EA pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.38, 1EA pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.38%

5.2 History

Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A

5.3 Sustainability

  • 28.09% of the earnings are spent on dividend by 1EA. This is a low number and sustainable payout ratio.
DP28.09%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
1EA.MI Yearly Income VS Free CF VS Dividend1EA.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
1EA.MI Dividend Payout.1EA.MI Dividend Payout, showing the Payout Ratio.1EA.MI Dividend Payout.PayoutRetained Earnings

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1EA.MI Fundamentals: All Metrics, Ratios and Statistics

ELECTRONIC ARTS INC

BIT:1EA (3/2/2026, 7:00:00 PM)

171.92

+11.1 (+6.9%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners95.54%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap43.02B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts69.09
Price Target168.63 (-1.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
Yearly Dividend0.67
Dividend Growth(5Y)N/A
DP28.09%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.35%
Min EPS beat(2)-9.82%
Max EPS beat(2)-0.89%
EPS beat(4)2
Avg EPS beat(4)29.91%
Min EPS beat(4)-9.82%
Max EPS beat(4)122.37%
EPS beat(8)4
Avg EPS beat(8)15.15%
EPS beat(12)7
Avg EPS beat(12)14.34%
EPS beat(16)9
Avg EPS beat(16)14.02%
Revenue beat(2)1
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)3.25%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)11.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.84%
Revenue beat(12)5
Avg Revenue beat(12)0.62%
Revenue beat(16)7
Avg Revenue beat(16)1.22%
PT rev (1m)-0.77%
PT rev (3m)25.11%
EPS NQ rev (1m)-3.65%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.03%
Valuation
Industry RankSector Rank
PE 26.49
Fwd PE 21.01
P/S 6.8
P/FCF 21.61
P/OCF 19.7
P/B 8.08
P/tB 91.15
EV/EBITDA 36.92
EPS(TTM)6.49
EY3.78%
EPS(NY)8.18
Fwd EY4.76%
FCF(TTM)7.96
FCFY4.63%
OCF(TTM)8.73
OCFY5.08%
SpS25.28
BVpS21.29
TBVpS1.89
PEG (NY)0.89
PEG (5Y)3.87
Graham Number55.7571 (-67.57%)
Profitability
Industry RankSector Rank
ROA 5.12%
ROE 11.05%
ROCE 11.26%
ROIC 8.44%
ROICexc 12.56%
ROICexgc 220.94%
OM 13.63%
PM (TTM) 9.31%
GM 78.26%
FCFM 31.47%
ROA(3y)8.17%
ROA(5y)7.3%
ROE(3y)15.16%
ROE(5y)13.3%
ROIC(3y)12.06%
ROIC(5y)10.47%
ROICexc(3y)16.76%
ROICexc(5y)16.45%
ROICexgc(3y)98.03%
ROICexgc(5y)99%
ROCE(3y)16.08%
ROCE(5y)13.96%
ROICexgc growth 3Y5.86%
ROICexgc growth 5Y-3.33%
ROICexc growth 3Y13.37%
ROICexc growth 5Y-15.13%
OM growth 3Y7.96%
OM growth 5Y-4.32%
PM growth 3Y10%
PM growth 5Y-22.83%
GM growth 3Y2.54%
GM growth 5Y1.05%
F-Score6
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Debt/EBITDA 1.13
Cap/Depr 69.91%
Cap/Sales 3.05%
Interest Coverage 17.79
Cash Conversion 191.79%
Profit Quality 338.09%
Current Ratio 0.93
Quick Ratio 0.93
Altman-Z 5.6
F-Score6
WACC10.12%
ROIC/WACC0.83
Cap/Depr(3y)49.99%
Cap/Depr(5y)51.43%
Cap/Sales(3y)2.79%
Cap/Sales(5y)2.65%
Profit Quality(3y)166.47%
Profit Quality(5y)186.51%
High Growth Momentum
Growth
EPS 1Y (TTM)9.02%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%70.32%
EPS Next Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y11.31%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%
Revenue Next Year12.98%
Revenue Next 2Y8.21%
Revenue Next 3Y6.13%
Revenue Next 5Y9%
EBIT growth 1Y-35.41%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year40.9%
EBIT Next 3Y15.68%
EBIT Next 5Y11.28%
FCF growth 1Y6.58%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y7.23%
OCF growth 3Y3.06%
OCF growth 5Y2.96%

ELECTRONIC ARTS INC / 1EA.MI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ELECTRONIC ARTS INC?

ChartMill assigns a fundamental rating of 5 / 10 to 1EA.MI.


Can you provide the valuation status for ELECTRONIC ARTS INC?

ChartMill assigns a valuation rating of 5 / 10 to ELECTRONIC ARTS INC (1EA.MI). This can be considered as Fairly Valued.


How profitable is ELECTRONIC ARTS INC (1EA.MI) stock?

ELECTRONIC ARTS INC (1EA.MI) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for 1EA stock?

The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (1EA.MI) is 26.49 and the Price/Book (PB) ratio is 8.08.


What is the earnings growth outlook for ELECTRONIC ARTS INC?

The Earnings per Share (EPS) of ELECTRONIC ARTS INC (1EA.MI) is expected to grow by 29.87% in the next year.