ELECTRONIC ARTS INC (1EA.MI) Fundamental Analysis & Valuation

BIT:1EA • US2855121099

Current stock price

171.92 EUR
+11.1 (+6.9%)
Last:

This 1EA.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. 1EA.MI Profitability Analysis

1.1 Basic Checks

  • 1EA had positive earnings in the past year.
  • 1EA had a positive operating cash flow in the past year.
  • Each year in the past 5 years 1EA has been profitable.
  • 1EA had a positive operating cash flow in each of the past 5 years.
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 a decent Return On Assets value of 5.12%, 1EA is doing good in the industry, outperforming 79.59% of the companies in the same industry.
  • 1EA has a Return On Equity of 11.05%. This is in the better half of the industry: 1EA outperforms 75.51% of its industry peers.
  • 1EA has a Return On Invested Capital of 8.44%. This is in the better half of the industry: 1EA outperforms 77.55% of its industry peers.
  • 1EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is above the industry average of 9.50%.
Industry RankSector Rank
ROA 5.12%
ROE 11.05%
ROIC 8.44%
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

  • The Profit Margin of 1EA (9.31%) is better than 75.51% of its industry peers.
  • In the last couple of years the Profit Margin of 1EA has declined.
  • 1EA's Operating Margin of 13.63% is amongst the best of the industry. 1EA outperforms 81.63% of its industry peers.
  • 1EA's Operating Margin has declined in the last couple of years.
  • 1EA's Gross Margin of 78.26% is fine compared to the rest of the industry. 1EA outperforms 71.43% 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 RankSector Rank
OM 13.63%
PM (TTM) 9.31%
GM 78.26%
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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6

2. 1EA.MI Health Analysis

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.
  • 1EA has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, 1EA has less shares outstanding
  • 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

  • 1EA has an Altman-Z score of 5.60. This indicates that 1EA is financially healthy and has little risk of bankruptcy at the moment.
  • 1EA's Altman-Z score of 5.60 is amongst the best of the industry. 1EA outperforms 89.80% of its industry peers.
  • 1EA has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
  • The Debt to FCF ratio of 1EA (0.82) is better than 89.80% 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 77.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Altman-Z 5.6
ROIC/WACC0.83
WACC10.12%
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 0.93 indicates that 1EA may have some problems paying its short term obligations.
  • 1EA's Current ratio of 0.93 is in line compared to the rest of the industry. 1EA outperforms 55.10% of its industry peers.
  • A Quick Ratio of 0.93 indicates that 1EA may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.93, 1EA is in line with its industry, outperforming 55.10% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.93
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

5

3. 1EA.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.02% over the past year.
  • 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 decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
  • The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)9.02%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%70.32%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
  • 1EA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y11.31%
Revenue Next Year12.98%
Revenue Next 2Y8.21%
Revenue Next 3Y6.13%
Revenue Next 5Y9%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
1EA.MI Yearly Revenue VS Estimates1EA.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 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 2030 2 4 6 8 10

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5

4. 1EA.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.49 indicates a quite expensive valuation of 1EA.
  • Based on the Price/Earnings ratio, 1EA is valued a bit cheaper than the industry average as 75.51% of the companies are valued more expensively.
  • 1EA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.71.
  • The Price/Forward Earnings ratio is 21.01, which indicates a rather expensive current valuation of 1EA.
  • 1EA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 69.39% of the companies in the same industry.
  • 1EA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.83.
Industry RankSector Rank
PE 26.49
Fwd PE 21.01
1EA.MI Price Earnings VS Forward Price Earnings1EA.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EA.
  • Based on the Price/Free Cash Flow ratio, 1EA is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.61
EV/EBITDA 36.92
1EA.MI Per share data1EA.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • 1EA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • 1EA has a very decent profitability rating, which may justify a higher PE ratio.
  • 1EA's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)3.87
EPS Next 2Y18.68%
EPS Next 3Y15.23%

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3

5. 1EA.MI Dividend Analysis

5.1 Amount

  • 1EA has a yearly dividend return of 0.38%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.01, 1EA pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.38, 1EA pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector 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

  • 28.09% of the earnings are spent on dividend by 1EA. This is a low number and sustainable payout ratio.
DP28.09%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
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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1EA.MI Fundamentals: All Metrics, Ratios and Statistics

ELECTRONIC ARTS INC

BIT:1EA (3/2/2026, 7:00:00 PM)

171.92

+11.1 (+6.9%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners95.54%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap43.02B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts69.09
Price Target168.63 (-1.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
Yearly Dividend0.67
Dividend Growth(5Y)N/A
DP28.09%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.35%
Min EPS beat(2)-9.82%
Max EPS beat(2)-0.89%
EPS beat(4)2
Avg EPS beat(4)29.91%
Min EPS beat(4)-9.82%
Max EPS beat(4)122.37%
EPS beat(8)4
Avg EPS beat(8)15.15%
EPS beat(12)7
Avg EPS beat(12)14.34%
EPS beat(16)9
Avg EPS beat(16)14.02%
Revenue beat(2)1
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)3.25%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)11.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.84%
Revenue beat(12)5
Avg Revenue beat(12)0.62%
Revenue beat(16)7
Avg Revenue beat(16)1.22%
PT rev (1m)-0.77%
PT rev (3m)25.11%
EPS NQ rev (1m)-3.65%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.03%
Valuation
Industry RankSector Rank
PE 26.49
Fwd PE 21.01
P/S 6.8
P/FCF 21.61
P/OCF 19.7
P/B 8.08
P/tB 91.15
EV/EBITDA 36.92
EPS(TTM)6.49
EY3.78%
EPS(NY)8.18
Fwd EY4.76%
FCF(TTM)7.96
FCFY4.63%
OCF(TTM)8.73
OCFY5.08%
SpS25.28
BVpS21.29
TBVpS1.89
PEG (NY)0.89
PEG (5Y)3.87
Graham Number55.76
Profitability
Industry RankSector Rank
ROA 5.12%
ROE 11.05%
ROCE 11.26%
ROIC 8.44%
ROICexc 12.56%
ROICexgc 220.94%
OM 13.63%
PM (TTM) 9.31%
GM 78.26%
FCFM 31.47%
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-Score6
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Debt/EBITDA 1.13
Cap/Depr 69.91%
Cap/Sales 3.05%
Interest Coverage 17.79
Cash Conversion 191.79%
Profit Quality 338.09%
Current Ratio 0.93
Quick Ratio 0.93
Altman-Z 5.6
F-Score6
WACC10.12%
ROIC/WACC0.83
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)9.02%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%70.32%
EPS Next Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y11.31%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%
Revenue Next Year12.98%
Revenue Next 2Y8.21%
Revenue Next 3Y6.13%
Revenue Next 5Y9%
EBIT growth 1Y-35.41%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year40.9%
EBIT Next 3Y15.68%
EBIT Next 5Y11.28%
FCF growth 1Y6.58%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y7.23%
OCF growth 3Y3.06%
OCF growth 5Y2.96%

ELECTRONIC ARTS INC / 1EA.MI Fundamental Analysis 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 for 1EA stock?

ChartMill assigns a valuation rating of 5 / 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 6 / 10.


What is the financial health of ELECTRONIC ARTS INC (1EA.MI) stock?

The financial health rating of ELECTRONIC ARTS INC (1EA.MI) is 6 / 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 29.87% in the next year.