ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis

Europe • Euronext Milan • BIT:1EA • US2855121099

174.3 EUR
+2.28 (+1.33%)
Last: Dec 19, 2025, 07:00 PM
Fundamental Rating

5

Taking everything into account, 1EA scores 5 out of 10 in our fundamental rating. 1EA was compared to 48 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.


Dividend Valuation Growth Profitability Health

7

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.
  • Each year in the past 5 years 1EA has been profitable.
  • Each year in the past 5 years 1EA had a positive operating cash flow.
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

  • With an excellent Return On Assets value of 7.47%, 1EA belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
  • 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.
  • With an excellent Return On Invested Capital value of 10.85%, 1EA belongs to the best 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 9.36%.
Industry RankSector 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%
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

  • 1EA has a better Profit Margin (12.14%) 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.
  • Looking at the Gross Margin, with a value of 78.79%, 1EA is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
  • In the last couple of years the Gross Margin of 1EA has remained more or less at the same level.
Industry RankSector 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%
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. 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.
  • 1EA has a worse debt/assets ratio than last year.
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

  • 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.
  • The Debt to FCF ratio of 1EA is 1.14, which is an excellent value as it means it would take 1EA, only 1.14 years of fcf income to pay off all of its debts.
  • 1EA has a better Debt to FCF ratio (1.14) than 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.
  • Looking at the Debt to Equity ratio, with a value of 0.25, 1EA is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.14
Altman-Z 6.9
ROIC/WACC1.12
WACC9.67%
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 0.84 indicates that 1EA may have some problems paying its short term obligations.
  • 1EA has a Current ratio (0.84) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
  • 1EA has a Quick ratio of 0.84. This is comparable to the rest of the industry: 1EA outperforms 45.10% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
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

4

3. Growth

3.1 Past

  • The earnings per share for 1EA have decreased strongly by -21.43% in the last year.
  • The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
  • 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

  • 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.
  • The Revenue is expected to grow by 5.29% on average over the next years.
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.
1EA.MI Yearly Revenue VS Estimates1EA.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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 2 4 6 8 10

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • 1EA is valuated quite expensively with a Price/Earnings ratio of 37.32.
  • 72.55% of the companies in the same industry are more expensive than 1EA, based on the Price/Earnings ratio.
  • 1EA is valuated rather expensively when we compare the Price/Earnings ratio to 28.25, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.52 indicates a rather expensive valuation of 1EA.
  • 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.32
Fwd PE 21.52
1EA.MI Price Earnings VS Forward Price Earnings1EA.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 1EA's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1EA.
Industry RankSector Rank
P/FCF 31.09
EV/EBITDA 33.23
1EA.MI Per share data1EA.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • 1EA's 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%

More info and screens

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

3

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 1.06.
  • 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 0.37%

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%
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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ELECTRONIC ARTS INC

BIT:1EA (12/19/2025, 7:00:00 PM)

174.3

+2.28 (+1.33%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-28
Earnings (Next)02-02
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.