ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
BIT:1EA - Euronext Milan - US2855121099 - Common Stock - Currency: EUR
Taking everything into account, 1EA scores 6 out of 10 in our fundamental rating. 1EA was compared to 45 industry peers in the Entertainment industry. 1EA gets an excellent profitability rating and is at the same time showing great financial health properties. 1EA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1EA had positive earnings in the past year.
1EA had a positive operating cash flow in the past year.
1EA had positive earnings in each of the past 5 years.
In the past 5 years 1EA always reported a positive cash flow from operatings.
1.2 Ratios
1EA's Return On Assets of 9.06% is amongst the best of the industry. 1EA outperforms 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 17.55%, 1EA is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.27%, 1EA belongs to the best of the industry, outperforming 83.67% 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 9.32%.
The last Return On Invested Capital (13.27%) for 1EA is above the 3 year average (12.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 17.55% | ||
| ROIC | 13.27% |
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 an excellent Profit Margin value of 15.02%, 1EA belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
In the last couple of years the Profit Margin of 1EA has declined.
The Operating Margin of 1EA (21.13%) is better than 91.84% of its industry peers.
In the last couple of years the Operating Margin of 1EA has declined.
The Gross Margin of 1EA (79.32%) is better than 71.43% 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 | 21.13% | ||
| PM (TTM) | 15.02% | ||
| GM | 79.32% |
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.
Compared to 1 year ago, 1EA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.57 indicates that 1EA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.57, 1EA belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
The Debt to FCF ratio of 1EA is 1.01, which is an excellent value as it means it would take 1EA, only 1.01 years of fcf income to pay off all of its debts.
1EA has a better Debt to FCF ratio (1.01) than 87.76% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that 1EA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.23, 1EA is doing good in the industry, outperforming 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.57 |
ROIC/WACC1.5
WACC8.82%
2.3 Liquidity
1EA has a Current Ratio of 0.95. 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 (0.95) which is in line with its industry peers.
1EA has a Quick Ratio of 0.95. This is a bad value and indicates that 1EA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1EA (0.95) is comparable to the rest of the industry.
1EA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
1EA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
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 -1.31% in the past year.
The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)-3.17%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-11.68%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%7.98%
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 4.10% on average per year.
EPS Next Y25.33%
EPS Next 2Y17.52%
EPS Next 3Y15.08%
EPS Next 5Y9.25%
Revenue Next Year9.69%
Revenue Next 2Y7.62%
Revenue Next 3Y6.56%
Revenue Next 5Y4.1%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.69, which indicates a rather expensive current valuation of 1EA.
73.47% of the companies in the same industry are more expensive than 1EA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. 1EA is around the same levels.
Based on the Price/Forward Earnings ratio of 18.11, the valuation of 1EA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than 67.35% of the companies in the same industry.
1EA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EA.
Based on the Price/Free Cash Flow ratio, 1EA is valued a bit cheaper than 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 19.52 |
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.
The excellent profitability rating of 1EA may justify a higher PE ratio.
1EA's earnings are expected to grow with 15.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)3.32
EPS Next 2Y17.52%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, 1EA is not a good candidate for dividend investing.
1EA's Dividend Yield is a higher than the industry average which is at 1.86.
Compared to an average S&P500 Dividend Yield of 2.42, 1EA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
17.75% of the earnings are spent on dividend by 1EA. This is a low number and sustainable payout ratio.
DP17.75%
EPS Next 2Y17.52%
EPS Next 3Y15.08%
BIT:1EA (5/12/2025, 7:00:00 PM)
134.8
+7.58 (+5.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners102.38%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap33.80B
Analysts74.74
Price Target136.01 (0.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.68
Dividend Growth(5Y)N/A
DP17.75%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-10.5%
Max EPS beat(2)7.97%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-10.5%
Max EPS beat(4)21.09%
EPS beat(8)5
Avg EPS beat(8)3.61%
EPS beat(12)8
Avg EPS beat(12)9.46%
EPS beat(16)10
Avg EPS beat(16)9.74%
Revenue beat(2)1
Avg Revenue beat(2)2.15%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)11.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)3
Avg Revenue beat(8)1.09%
Revenue beat(12)6
Avg Revenue beat(12)2.01%
Revenue beat(16)8
Avg Revenue beat(16)0.49%
PT rev (1m)-1.79%
PT rev (3m)-5.48%
EPS NQ rev (1m)-80.18%
EPS NQ rev (3m)-79.56%
EPS NY rev (1m)9.41%
EPS NY rev (3m)9.76%
Revenue NQ rev (1m)-2.36%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)3.09%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.11 | ||
| P/S | 5.12 | ||
| P/FCF | 20.56 | ||
| P/OCF | 18.38 | ||
| P/B | 5.98 | ||
| P/tB | 53.28 | ||
| EV/EBITDA | 19.52 |
EPS(TTM)5.94
EY4.41%
EPS(NY)7.44
Fwd EY5.52%
FCF(TTM)6.56
FCFY4.86%
OCF(TTM)7.34
OCFY5.44%
SpS26.33
BVpS22.53
TBVpS2.53
PEG (NY)0.9
PEG (5Y)3.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 17.55% | ||
| ROCE | 17.7% | ||
| ROIC | 13.27% | ||
| ROICexc | 17.75% | ||
| ROICexgc | 119.2% | ||
| OM | 21.13% | ||
| PM (TTM) | 15.02% | ||
| GM | 79.32% | ||
| FCFM | 24.9% |
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%
ROICexcg growth 3Y5.86%
ROICexcg 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 62.08% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 28.16 | ||
| Cash Conversion | 107.55% | ||
| Profit Quality | 165.75% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 5.57 |
F-Score7
WACC8.82%
ROIC/WACC1.5
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)-3.17%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-11.68%
EPS Next Y25.33%
EPS Next 2Y17.52%
EPS Next 3Y15.08%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%7.98%
Revenue Next Year9.69%
Revenue Next 2Y7.62%
Revenue Next 3Y6.56%
Revenue Next 5Y4.1%
EBIT growth 1Y-4.42%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.25%
EBIT Next 3Y14.95%
EBIT Next 5Y10.78%
FCF growth 1Y-12.19%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-10.19%
OCF growth 3Y3.06%
OCF growth 5Y2.96%