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

BIT:1EA • US2855121099

171.92 EUR
+11.1 (+6.9%)
Last: Mar 2, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

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

Fundamental Rating

5

Overall 1EA gets a fundamental rating of 5 out of 10. We evaluated 1EA against 49 industry peers in the Entertainment industry. Both the profitability and the financial health of 1EA get a neutral evaluation. Nothing too spectacular is happening here. 1EA is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. 1EA.MI Profitability Analysis

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.
  • 1EA had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 5.12%, 1EA is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
  • 1EA has a better Return On Equity (11.05%) than 75.51% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.44%, 1EA is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for 1EA is above the industry average of 8.28%.
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

  • Looking at the Profit Margin, with a value of 9.31%, 1EA is in the better half of 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.
  • 1EA's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 78.26%, 1EA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • 1EA has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, 1EA has less shares outstanding
  • 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

  • 1EA has an Altman-Z score of 5.61. This indicates that 1EA is financially healthy and has little risk of bankruptcy at the moment.
  • 1EA's Altman-Z score of 5.61 is amongst the best of the industry. 1EA outperforms 89.80% of its industry peers.
  • 1EA has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
  • 1EA's Debt to FCF ratio of 0.82 is amongst the best of the industry. 1EA outperforms 89.80% of its industry peers.
  • 1EA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • 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 5.61
ROIC/WACC0.85
WACC9.99%
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.
  • 1EA has a Current ratio (0.93) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.93 indicates that 1EA may have some problems paying its short term obligations.
  • The Quick ratio of 1EA (0.93) is comparable to the rest of the industry.
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

  • The Earnings Per Share has grown by an nice 9.02% over the past year.
  • Measured over the past 5 years, 1EA shows a small growth in Earnings Per Share. The EPS has been growing by 6.84% on average per year.
  • The Revenue has decreased by -0.56% in the past year.
  • The Revenue has been growing slightly by 6.15% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

  • A Price/Earnings ratio of 26.53 indicates a quite expensive valuation of 1EA.
  • 75.51% of the companies in the same industry are more expensive than 1EA, based on the Price/Earnings ratio.
  • 1EA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 21.03, the valuation of 1EA can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 69.39% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of 1EA to the average of the S&P500 Index (24.60), we can say 1EA is valued inline with the index average.
Industry RankSector Rank
PE 26.53
Fwd PE 21.03
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

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1EA is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, 1EA is valued a bit cheaper than 69.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.64
EV/EBITDA 36.97
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.
  • 1EA's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)3.88
EPS Next 2Y18.68%
EPS Next 3Y15.23%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. 1EA.MI Dividend Analysis

5.1 Amount

  • 1EA has a yearly dividend return of 0.38%, which is pretty low.
  • 1EA's Dividend Yield is a higher than the industry average which is at 0.92.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1EA's dividend is way lower than the S&P500 average.
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 Owners100.77%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap43.02B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts67.65
Price Target167.79 (-2.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
Yearly Dividend0.65
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 26.53
Fwd PE 21.03
P/S 6.81
P/FCF 21.64
P/OCF 19.72
P/B 8.08
P/tB 91.26
EV/EBITDA 36.97
EPS(TTM)6.48
EY3.77%
EPS(NY)8.17
Fwd EY4.75%
FCF(TTM)7.95
FCFY4.62%
OCF(TTM)8.72
OCFY5.07%
SpS25.25
BVpS21.26
TBVpS1.88
PEG (NY)0.89
PEG (5Y)3.88
Graham Number55.68
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 5.61
F-Score6
WACC9.99%
ROIC/WACC0.85
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 FAQ

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

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


What is the valuation status for 1EA stock?

ChartMill assigns a valuation rating of 5 / 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 6 / 10.


What is the financial health of ELECTRONIC ARTS INC (1EA.MI) stock?

The financial health rating of ELECTRONIC ARTS INC (1EA.MI) is 6 / 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 29.87% in the next year.