ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EA - US2855121099 - Common Stock
174.3 EUR
+2.28 (+1.33%)
1EA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. 1EA scores excellent on profitability, 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.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.47%, 1EA belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
- The Return On Equity of 1EA (14.75%) is better than 74.51% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for 1EA is above the industry average of 9.05%.
| 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
- Looking at the Profit Margin, with a value of 12.14%, 1EA is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1EA has declined.
- 1EA has a better Operating Margin (17.11%) than 90.20% of its industry peers.
- In the last couple of years the Operating Margin of 1EA has declined.
- 1EA has a Gross Margin of 78.79%. This is in the better half of the industry: 1EA outperforms 68.63% of its industry peers.
- In the last couple of years the Gross Margin of 1EA has remained more or less at the same level.
| 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.
- The number of shares outstanding for 1EA has been reduced compared to 1 year ago.
- 1EA has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1EA has a worse debt to assets ratio.
2.2 Solvency
- 1EA has an Altman-Z score of 6.90. This indicates that 1EA is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.90, 1EA belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
- 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.
- 1EA has a Debt to Equity ratio of 0.25. This is in the better half of the industry: 1EA outperforms 68.63% of its industry peers.
| 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 of 0.84. This is comparable to the rest of the industry: 1EA outperforms 43.14% of its industry peers.
- 1EA has a Quick 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 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.
- Looking at the last year, 1EA shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last 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)-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
- Based on estimates for the next years, 1EA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
- Based on estimates for the next years, 1EA will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
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
- 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.32, the valuation of 1EA can be described as expensive.
- Based on the Price/Earnings ratio, 1EA is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
- 1EA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 21.52, the valuation of 1EA can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
- 1EA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.32 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
- 1EA's Enterprise Value to EBITDA ratio is in line with 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.
- 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 15.83% in the coming years.
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 0.78, 1EA pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, 1EA's dividend is way lower than the S&P500 average.
| 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%
BIT:1EA (12/19/2025, 7:00:00 PM)
174.3
+2.28 (+1.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-02 2026-02-02/amc
Inst Owners100.93%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap43.59B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target169.1 (-2.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.65
Dividend Growth(5Y)N/A
DP21.92%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)56.28%
Min EPS beat(2)-9.82%
Max EPS beat(2)122.37%
EPS beat(4)2
Avg EPS beat(4)27.51%
Min EPS beat(4)-10.5%
Max EPS beat(4)122.37%
EPS beat(8)4
Avg EPS beat(8)15.01%
EPS beat(12)7
Avg EPS beat(12)13.5%
EPS beat(16)9
Avg EPS beat(16)13.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.73%
Revenue beat(12)4
Avg Revenue beat(12)-1.91%
Revenue beat(16)6
Avg Revenue beat(16)-1.16%
PT rev (1m)26.08%
PT rev (3m)11.64%
EPS NQ rev (1m)7.71%
EPS NQ rev (3m)8.24%
EPS NY rev (1m)3.13%
EPS NY rev (3m)5.2%
Revenue NQ rev (1m)7.04%
Revenue NQ rev (3m)7.43%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.32 | ||
| Fwd PE | 21.52 | ||
| P/S | 7.05 | ||
| P/FCF | 31.09 | ||
| P/OCF | 27.45 | ||
| P/B | 8.56 | ||
| P/tB | 140.01 | ||
| EV/EBITDA | 33.23 |
EPS(TTM)4.67
EY2.68%
EPS(NY)8.1
Fwd EY4.65%
FCF(TTM)5.61
FCFY3.22%
OCF(TTM)6.35
OCFY3.64%
SpS24.72
BVpS20.35
TBVpS1.24
PEG (NY)1.21
PEG (5Y)5.46
Graham Number46.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 14.75% | ||
| ROCE | 14.48% | ||
| ROIC | 10.85% | ||
| ROICexc | 12.71% | ||
| ROICexgc | 54.33% | ||
| OM | 17.11% | ||
| PM (TTM) | 12.14% | ||
| GM | 78.79% | ||
| FCFM | 22.68% |
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-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 69.52% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 22.27 | ||
| Cash Conversion | 119.85% | ||
| Profit Quality | 186.78% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.9 |
F-Score7
WACC9.67%
ROIC/WACC1.12
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)-21.43%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-43.72%
EPS Next Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
Revenue Next 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year41.75%
EBIT Next 3Y16.17%
EBIT Next 5Y10.74%
FCF growth 1Y-18.17%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-15.33%
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 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.