ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EA - US2855121099 - Common Stock
174.3 EUR
+2.28 (+1.33%)
Overall 1EA gets a fundamental rating of 5 out of 10. We evaluated 1EA against 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 correct valuation and a medium growth rate.
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
1EA has a better Return On Assets (7.47%) than 84.31% of its industry peers.
The Return On Equity of 1EA (14.75%) is better than 74.51% of its industry peers.
1EA's Return On Invested Capital of 10.85% is amongst the best of the industry. 1EA outperforms 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 9.36%.
| 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
1EA's Profit Margin of 12.14% is fine compared to the rest of the industry. 1EA outperforms 78.43% of its industry peers.
1EA's Profit Margin has declined in the last couple of years.
The Operating Margin of 1EA (17.11%) is better than 90.20% of its industry peers.
1EA's Operating Margin has declined in the last couple of years.
The Gross Margin of 1EA (78.79%) is better than 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
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.
Compared to 5 years ago, 1EA has less shares outstanding
The debt/assets ratio for 1EA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.90 indicates that 1EA is not in any danger for 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.
1EA has a Debt to FCF ratio of 1.14. This is amongst the best in 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.
1EA has a better Debt to Equity ratio (0.25) than 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 (0.84) which is in line with its industry peers.
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%.
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.
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
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.
1EA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
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.
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 72.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, 1EA is valued a bit more expensive.
1EA is valuated rather expensively with a Price/Forward Earnings ratio of 21.52.
62.75% of the companies in the same industry are more expensive than 1EA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, 1EA is valued at the same level.
| 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 is on the same level as the industry average.
| 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
1EA has a yearly dividend return of 0.37%, which is pretty low.
Compared to an average industry Dividend Yield of 0.93, 1EA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, 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)
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 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.