ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - BIT:1EA - US2855121099 - Common Stock
172.02 EUR
-0.96 (-0.55%)
1EA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 45 industry peers in the Entertainment industry. While 1EA has a great profitability rating, 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.
1EA had a positive operating cash flow in the past year.
In the past 5 years 1EA has always been profitable.
1EA had a positive operating cash flow in each of the past 5 years.
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 has a Return On Invested Capital of 12.83%. This is amongst the best in the industry. 1EA outperforms 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1EA is in line with the industry average of 10.27%.
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.
With an excellent Operating Margin value of 19.83%, 1EA belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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.
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.
Compared to 5 years ago, 1EA has less shares outstanding
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.
1EA has a better Altman-Z score (7.05) than 89.58% 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.
The Debt to FCF ratio of 1EA (1.08) is better than 85.42% 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 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
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.
Looking at the Current ratio, with a value of 0.84, 1EA is in line with its industry, outperforming 45.83% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
The Quick ratio of 1EA (0.84) 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 2.06%.
The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
1EA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.41%.
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
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.
1EA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.24% yearly.
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
With a Price/Earnings ratio of 30.88, 1EA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1EA is valued a bit cheaper than 72.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1EA to the average of the S&P500 Index (27.57), we can say 1EA is valued inline with the index average.
A Price/Forward Earnings ratio of 21.38 indicates a rather expensive valuation of 1EA.
1EA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 70.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. 1EA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1EA is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
1EA's Price/Free Cash Flow ratio is in line with 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.
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 15.28% 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.
Compared to an average industry Dividend Yield of 2.84, 1EA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 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%