ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1EA • US2855121099
174.3 EUR
+2.28 (+1.33%)
Last: Dec 19, 2025, 07:00 PM
Taking everything into account, 1EA scores 5 out of 10 in our fundamental rating. 1EA was compared to 48 industry peers in the Entertainment industry. 1EA has an excellent profitability rating, but there are some minor concerns on its financial health. 1EA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1EA was profitable.
- In the past year 1EA had a positive cash flow from operations.
- 1EA had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1EA had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 7.47%, 1EA belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
- With a decent Return On Equity value of 14.75%, 1EA is doing good in the industry, outperforming 74.51% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.85%, 1EA belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
- 1EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is above the industry average of 9.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 14.75% | ||
| ROIC | 10.85% |
ROA(3y)8.17%
ROA(5y)7.3%
ROE(3y)15.16%
ROE(5y)13.3%
ROIC(3y)12.06%
ROIC(5y)10.47%
1.3 Margins
- With a decent Profit Margin value of 12.14%, 1EA is doing good in the industry, outperforming 78.43% of the companies in the same industry.
- 1EA's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 17.11%, 1EA belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
- 1EA's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 78.79%, 1EA is doing good in the industry, outperforming 68.63% of the companies in the same industry.
- 1EA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.11% | ||
| PM (TTM) | 12.14% | ||
| GM | 78.79% |
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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1EA is creating some value.
- 1EA has less shares outstanding than it did 1 year ago.
- 1EA has less shares outstanding than it did 5 years ago.
- 1EA has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.90 indicates that 1EA is not in any danger for bankruptcy at the moment.
- 1EA's Altman-Z score of 6.90 is amongst the best of the industry. 1EA outperforms 90.20% of its industry peers.
- 1EA has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.14, 1EA belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
- 1EA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.25, 1EA is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.9 |
ROIC/WACC1.12
WACC9.67%
2.3 Liquidity
- 1EA has a Current Ratio of 0.84. This is a bad value and indicates that 1EA is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1EA has a Current ratio (0.84) which is comparable to the rest of the industry.
- A Quick Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
- 1EA has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- 1EA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
- The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
- 1EA shows a decrease in Revenue. In the last year, the revenue decreased by -1.63%.
- The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)-21.43%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-43.72%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
3.2 Future
- 1EA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
- The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
Revenue Next 5Y5.29%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 37.32, which means the current valuation is very expensive for 1EA.
- Based on the Price/Earnings ratio, 1EA is valued a bit cheaper than 72.55% of the companies in the same industry.
- 1EA is valuated rather expensively when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 21.52 indicates a rather expensive valuation of 1EA.
- 62.75% of the companies in the same industry are more expensive than 1EA, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. 1EA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.32 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
- 1EA's Enterprise Value to EBITDA is on the same level as the industry average.
- 1EA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 33.23 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1EA may justify a higher PE ratio.
- 1EA's earnings are expected to grow with 15.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)5.46
EPS Next 2Y19.27%
EPS Next 3Y15.83%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.37%, 1EA is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.06, 1EA pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.37, 1EA pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 21.92% of the earnings are spent on dividend by 1EA. This is a low number and sustainable payout ratio.
DP21.92%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
ELECTRONIC ARTS INC / 1EA.MI FAQ
Can you provide the ChartMill fundamental rating for ELECTRONIC ARTS INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1EA.MI.
What is the valuation status for 1EA stock?
ChartMill assigns a valuation rating of 4 / 10 to ELECTRONIC ARTS INC (1EA.MI). This can be considered as Fairly Valued.
What is the profitability of 1EA stock?
ELECTRONIC ARTS INC (1EA.MI) has a profitability rating of 8 / 10.
What is the financial health of ELECTRONIC ARTS INC (1EA.MI) stock?
The financial health rating of ELECTRONIC ARTS INC (1EA.MI) is 7 / 10.
What is the expected EPS growth for ELECTRONIC ARTS INC (1EA.MI) stock?
The Earnings per Share (EPS) of ELECTRONIC ARTS INC (1EA.MI) is expected to grow by 30.93% in the next year.