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 44 industry peers in the Entertainment industry. While 1EA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1EA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1EA had positive earnings in the past year.
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.
1.2 Ratios
1EA's Return On Assets of 7.47% is amongst the best of the industry. 1EA outperforms 84.31% of its industry peers.
1EA's Return On Equity of 14.75% is fine compared to the rest of the industry. 1EA outperforms 74.51% of its industry peers.
The Return On Invested Capital of 1EA (10.85%) is better than 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1EA is above the industry average of 9.87%.
| 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
The Profit Margin of 1EA (12.14%) is better than 78.43% of its industry peers.
In the last couple of years the Profit Margin of 1EA has declined.
1EA has a Operating Margin of 17.11%. This is amongst the best in the industry. 1EA outperforms 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.
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
1EA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
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.
The Altman-Z score of 1EA (6.90) is better than 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.
1EA's Debt to FCF ratio of 1.14 is amongst the best of the industry. 1EA outperforms 82.35% of its industry peers.
1EA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.25, 1EA is doing good in 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
A Current Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
With a Current ratio value of 0.84, 1EA perfoms like the industry average, outperforming 43.14% of the companies in the same 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 comparable to the rest of the industry.
| 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%.
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 -1.63% in the past year.
Measured over the past years, 1EA shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
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.
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
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.32, 1EA can be considered very expensive at the moment.
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.
When comparing the Price/Earnings ratio of 1EA to the average of the S&P500 Index (26.92), we can say 1EA is valued slightly more expensively.
The Price/Forward Earnings ratio is 21.52, which indicates a rather expensive current valuation of 1EA.
Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than 62.75% of the companies in the same industry.
1EA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 33.23 |
4.3 Compensation for Growth
1EA's 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.
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.
1EA's Dividend Yield is a higher than the industry average which is at 0.98.
With a Dividend Yield of 0.37, 1EA pays less dividend than the S&P500 average, which is at 2.00.
| 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
1EA pays out 21.92% of its income as dividend. This is a 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)
Earnings (Next)
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 of ELECTRONIC ARTS INC (1EA.MI) 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.
Can you provide the PE and PB ratios for 1EA stock?
The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (1EA.MI) is 37.32 and the Price/Book (PB) ratio is 8.56.
Can you provide the financial health for 1EA stock?
The financial health rating of ELECTRONIC ARTS INC (1EA.MI) is 7 / 10.