ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EA - US2855121099 - Common Stock
172.02 EUR
-0.96 (-0.55%)
Taking everything into account, 1EA scores 6 out of 10 in our fundamental rating. 1EA was compared to 44 industry peers in the Entertainment industry. 1EA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1EA is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years 1EA has been profitable.
In the past 5 years 1EA always reported a positive cash flow from operatings.
1.2 Ratios
1EA's Return On Assets of 8.91% is amongst the best of the industry. 1EA outperforms 89.58% of its industry peers.
The Return On Equity of 1EA (17.13%) is better than 79.17% of its industry peers.
With an excellent Return On Invested Capital value of 12.83%, 1EA belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1EA is above the industry average of 10.01%.
The 3 year average ROIC (12.06%) for 1EA is below the current ROIC(12.83%), indicating increased profibility in the last year.
| 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
1EA's Profit Margin of 13.94% is amongst the best of the industry. 1EA outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of 1EA has declined.
1EA has a better Operating Margin (19.83%) than 91.67% of its industry peers.
1EA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 79.14%, 1EA is in the better half of the industry, outperforming 64.58% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1EA is 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
1EA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.05 indicates that 1EA is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1EA (7.05) is better 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.
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.
A Debt/Equity ratio of 0.24 indicates that 1EA is not too dependend on debt financing.
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
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.
The Current ratio of 1EA (0.84) is comparable to the rest of the industry.
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.
The Quick ratio of 1EA (0.84) is comparable to the rest of the industry.
The current and quick ratio evaluation for 1EA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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%.
The Revenue has been growing slightly by 6.15% on average over the past years.
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
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.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.88, 1EA can be considered very expensive at the moment.
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 26.31, 1EA is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.38, the valuation of 1EA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than 70.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1EA to the average of the S&P500 Index (36.59), we can say 1EA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
64.58% of the companies in the same industry are cheaper than 1EA, based on the Enterprise Value to EBITDA ratio.
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.
The excellent 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 2.34, 1EA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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.