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
We assign a fundamental rating of 5 out of 10 to 1EA. 1EA was compared to 46 industry peers in the Entertainment industry. While 1EA has a great profitability rating, 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
- 1EA had positive earnings in the past year.
- 1EA had a positive operating cash flow in the past year.
- 1EA had positive earnings in each of the past 5 years.
- 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 7.47%, 1EA belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.75%, 1EA is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
- 1EA has a Return On Invested Capital of 10.85%. This is amongst the best in the industry. 1EA outperforms 82.35% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1EA is above the industry average of 9.28%.
| Industry Rank | Sector 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%
1.3 Margins
- 1EA's Profit Margin of 12.14% is fine compared to the rest of the industry. 1EA outperforms 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.
- The Gross Margin of 1EA (78.79%) is better than 68.63% 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 | 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%
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 6.90. This indicates that 1EA is financially healthy and has little risk of bankruptcy at the moment.
- 1EA has a Altman-Z score of 6.90. This is amongst the best in the industry. 1EA outperforms 90.20% of its industry peers.
- 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's Debt to FCF ratio of 1.14 is amongst the best of the industry. 1EA outperforms 82.35% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that 1EA is not too dependend on debt financing.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.9 |
ROIC/WACC1.12
WACC9.67%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
- The Current ratio of 1EA (0.84) 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.
- With a Quick ratio value of 0.84, 1EA perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
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.
- Looking at the last year, 1EA shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last year.
- The Revenue has been growing slightly by 6.15% on average over the past years.
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.
- Based on estimates for the next years, 1EA will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 37.32 indicates a quite expensive valuation of 1EA.
- 1EA's Price/Earnings ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 72.55% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, 1EA is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 21.52, the valuation of 1EA can be described as rather expensive.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1EA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.32 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EA.
- 1EA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 33.23 |
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 15.83% in the coming years.
PEG (NY)1.21
PEG (5Y)5.46
EPS Next 2Y19.27%
EPS Next 3Y15.83%
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 0.84.
- With a Dividend Yield of 0.37, 1EA pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector 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
- 21.92% of the earnings are spent on dividend by 1EA. This is a low number and sustainable payout ratio.
DP21.92%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
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.