ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - BIT:1EA - US2855121099 - Common Stock
172.02 EUR
-0.96 (-0.55%)
We assign a fundamental rating of 5 out of 10 to 1EA. 1EA was compared to 46 industry peers in the Entertainment industry. 1EA scores excellent on profitability, but 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
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.
In the past 5 years 1EA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.91%, 1EA belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
With a decent Return On Equity value of 17.13%, 1EA is doing good in the industry, outperforming 79.17% of the companies in the same industry.
1EA's Return On Invested Capital of 12.83% is amongst the best of the industry. 1EA outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1EA is in line with the industry average of 10.28%.
The last Return On Invested Capital (12.83%) for 1EA is above the 3 year average (12.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.13% | ||
| ROIC | 12.83% |
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 13.94%, 1EA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of 1EA has declined.
1EA's Operating Margin of 19.83% is amongst the best of the industry. 1EA outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of 1EA has declined.
The Gross Margin of 1EA (79.14%) is better than 64.58% of its industry peers.
1EA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.83% | ||
| PM (TTM) | 13.94% | ||
| GM | 79.14% |
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.
Compared to 1 year ago, 1EA has less shares outstanding
The number of shares outstanding for 1EA has been reduced compared to 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 7.05. This indicates that 1EA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.05, 1EA belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
The Debt to FCF ratio of 1EA is 1.08, which is an excellent value as it means it would take 1EA, only 1.08 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.08, 1EA belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
1EA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
1EA's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. 1EA outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 7.05 |
ROIC/WACC1.52
WACC8.42%
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 of 0.84. This is comparable to the rest of the industry: 1EA outperforms 45.83% 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.
With a Quick ratio value of 0.84, 1EA perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
1EA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.06%.
1EA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
Looking at the last year, 1EA shows a small growth in Revenue. The Revenue has grown by 2.41% 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)2.06%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-51.92%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
3.2 Future
The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.24% on average over the next years.
EPS Next Y26.96%
EPS Next 2Y17.76%
EPS Next 3Y15.28%
EPS Next 5Y9.25%
Revenue Next Year10.74%
Revenue Next 2Y7.69%
Revenue Next 3Y6.98%
Revenue Next 5Y5.24%
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
A Price/Earnings ratio of 30.88 indicates a quite expensive valuation of 1EA.
Compared to the rest of the industry, the Price/Earnings ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 72.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, 1EA is valued at the same level.
With a Price/Forward Earnings ratio of 21.38, 1EA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 70.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. 1EA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1EA indicates a slightly more expensive valuation: 1EA is more expensive than 64.58% of the companies listed in the same industry.
1EA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.35 | ||
| EV/EBITDA | 27.09 |
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 15.28% in the coming years.
PEG (NY)1.15
PEG (5Y)4.51
EPS Next 2Y17.76%
EPS Next 3Y15.28%
5. Dividend
5.1 Amount
1EA has a yearly dividend return of 0.38%, which is pretty low.
1EA's Dividend Yield is a higher than the industry average which is at 2.25.
Compared to an average S&P500 Dividend Yield of 2.36, 1EA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1EA pays out 18.91% of its income as dividend. This is a sustainable payout ratio.
DP18.91%
EPS Next 2Y17.76%
EPS Next 3Y15.28%
BIT:1EA (9/30/2025, 7:00:00 PM)
172.02
-0.96 (-0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners103.56%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap42.89B
Revenue(TTM)7.47B
Net Income(TTM)1.04B
Analysts71.43
Price Target134.12 (-22.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.66
Dividend Growth(5Y)N/A
DP18.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.17%
Min EPS beat(2)7.97%
Max EPS beat(2)122.37%
EPS beat(4)3
Avg EPS beat(4)30.78%
Min EPS beat(4)-10.5%
Max EPS beat(4)122.37%
EPS beat(8)5
Avg EPS beat(8)17.91%
EPS beat(12)8
Avg EPS beat(12)14.56%
EPS beat(16)10
Avg EPS beat(16)16.44%
Revenue beat(2)1
Avg Revenue beat(2)4.92%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)11.74%
Revenue beat(4)1
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-1.19%
Revenue beat(16)7
Avg Revenue beat(16)-0.72%
PT rev (1m)-10.99%
PT rev (3m)-1.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36%
EPS NY rev (1m)2.01%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.65%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 21.38 | ||
| P/S | 6.64 | ||
| P/FCF | 28.35 | ||
| P/OCF | 25.11 | ||
| P/B | 8.16 | ||
| P/tB | 117.58 | ||
| EV/EBITDA | 27.09 |
EPS(TTM)5.57
EY3.24%
EPS(NY)8.04
Fwd EY4.68%
FCF(TTM)6.07
FCFY3.53%
OCF(TTM)6.85
OCFY3.98%
SpS25.91
BVpS21.09
TBVpS1.46
PEG (NY)1.15
PEG (5Y)4.51
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.13% | ||
| ROCE | 17.12% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.81% | ||
| ROICexgc | 81.17% | ||
| OM | 19.83% | ||
| PM (TTM) | 13.94% | ||
| GM | 79.14% | ||
| FCFM | 23.41% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 63.66% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.57% | ||
| Profit Quality | 167.95% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 7.05 |
F-Score7
WACC8.42%
ROIC/WACC1.52
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)2.06%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-51.92%
EPS Next Y26.96%
EPS Next 2Y17.76%
EPS Next 3Y15.28%
EPS Next 5Y9.25%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
Revenue Next Year10.74%
Revenue Next 2Y7.69%
Revenue Next 3Y6.98%
Revenue Next 5Y5.24%
EBIT growth 1Y0.61%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.3%
EBIT Next 3Y16.39%
EBIT Next 5Y12.34%
FCF growth 1Y-2.45%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-0.55%
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 5 / 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 7 / 10.
Can you provide the PE and PB ratios for 1EA stock?
The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (1EA.MI) is 30.88 and the Price/Book (PB) ratio is 8.16.
Can you provide the financial health for 1EA stock?
The financial health rating of ELECTRONIC ARTS INC (1EA.MI) is 6 / 10.