ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - BIT:1EA - US2855121099 - Common Stock
143.84 EUR
-4.56 (-3.07%)
Taking everything into account, 1EA scores 5 out of 10 in our fundamental rating. 1EA was compared to 46 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 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.
In the past 5 years 1EA has always been profitable.
Each year in the past 5 years 1EA had a positive operating cash flow.
1.2 Ratios
1EA has a better Return On Assets (8.91%) than 91.30% of its industry peers.
Looking at the Return On Equity, with a value of 17.13%, 1EA is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.83%, 1EA belongs to the best of the industry, outperforming 84.78% 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 in line with the industry average of 10.51%.
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 82.61% of the companies in the same industry.
1EA's Profit Margin has declined in the last couple of years.
1EA has a better Operating Margin (19.83%) than 93.48% 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 79.14%, 1EA is in the better half of the industry, outperforming 71.74% 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1EA is still creating some value.
The number of shares outstanding for 1EA has been reduced compared to 1 year ago.
The number of shares outstanding for 1EA has been reduced compared to 5 years ago.
1EA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.28 indicates that 1EA is not in any danger for bankruptcy at the moment.
1EA has a Altman-Z score of 6.28. This is amongst the best in the industry. 1EA outperforms 89.13% of its industry peers.
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.
1EA has a better Debt to FCF ratio (1.08) than 91.30% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that 1EA is not too dependend on debt financing.
1EA has a Debt to Equity ratio of 0.24. This is in the better half of the industry: 1EA outperforms 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 6.28 |
ROIC/WACC1.53
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
1EA's Current ratio of 0.84 is in line compared to the rest of the industry. 1EA outperforms 50.00% 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.
1EA has a Quick ratio of 0.84. This is comparable to the rest of the industry: 1EA outperforms 52.17% of its industry peers.
| 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%.
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.
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 4.40% on average over the next years.
EPS Next Y24.46%
EPS Next 2Y17.69%
EPS Next 3Y15.43%
EPS Next 5Y9.25%
Revenue Next Year10.29%
Revenue Next 2Y7.6%
Revenue Next 3Y6.85%
Revenue Next 5Y4.4%
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
Based on the Price/Earnings ratio of 26.30, the valuation of 1EA can be described as expensive.
76.09% of the companies in the same industry are more expensive than 1EA, based on the Price/Earnings ratio.
1EA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
1EA is valuated rather expensively with a Price/Forward Earnings ratio of 18.21.
Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.71. 1EA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
1EA's Enterprise Value to EBITDA is on the same level as the industry average.
1EA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.2 | ||
| EV/EBITDA | 23.13 |
4.3 Compensation for Growth
The 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 15.43% in the coming years.
PEG (NY)1.07
PEG (5Y)3.84
EPS Next 2Y17.69%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, 1EA is not a good candidate for dividend investing.
1EA's Dividend Yield is a higher than the industry average which is at 1.96.
Compared to an average S&P500 Dividend Yield of 2.38, 1EA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 2Y17.69%
EPS Next 3Y15.43%
BIT:1EA (9/10/2025, 7:00:00 PM)
143.84
-4.56 (-3.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners105.5%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap35.99B
Analysts76
Price Target150.67 (4.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)1.67%
PT rev (3m)10.78%
EPS NQ rev (1m)-32.63%
EPS NQ rev (3m)-36%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)-3%
Revenue NQ rev (3m)-9.65%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 18.21 | ||
| P/S | 5.67 | ||
| P/FCF | 24.2 | ||
| P/OCF | 21.43 | ||
| P/B | 6.96 | ||
| P/tB | 100.35 | ||
| EV/EBITDA | 23.13 |
EPS(TTM)5.47
EY3.8%
EPS(NY)7.9
Fwd EY5.49%
FCF(TTM)5.94
FCFY4.13%
OCF(TTM)6.71
OCFY4.67%
SpS25.39
BVpS20.66
TBVpS1.43
PEG (NY)1.07
PEG (5Y)3.84
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%
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 Turnover0.64
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 | 6.28 |
F-Score7
WACC8.37%
ROIC/WACC1.53
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 Y24.46%
EPS Next 2Y17.69%
EPS Next 3Y15.43%
EPS Next 5Y9.25%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
Revenue Next Year10.29%
Revenue Next 2Y7.6%
Revenue Next 3Y6.85%
Revenue Next 5Y4.4%
EBIT growth 1Y0.61%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year35.92%
EBIT Next 3Y16.06%
EBIT Next 5Y11.34%
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%