ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - BIT:1EA - US2855121099 - Common Stock
172.02 EUR
-0.96 (-0.55%)
Overall 1EA gets a fundamental rating of 5 out of 10. We evaluated 1EA against 43 industry peers in the Entertainment industry. 1EA scores excellent on profitability, but there are some minor concerns on its financial health. 1EA has a decent growth rate and is not valued too expensively.
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.
In the past 5 years 1EA has always 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.
1EA has a better Return On Equity (17.13%) than 79.17% of its industry peers.
1EA's Return On Invested Capital of 12.83% is amongst the best of the industry. 1EA outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1EA is in line with the industry average of 10.60%.
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.
1EA's Profit Margin has declined in the last couple of years.
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.
With a decent Gross Margin value of 79.14%, 1EA is doing good in 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
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.
The debt/assets ratio for 1EA is higher compared to a year ago.
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.
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.
1EA has a Debt to FCF ratio of 1.08. This is amongst the best in the industry. 1EA outperforms 85.42% of its industry peers.
1EA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, 1EA is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 7.05 |
ROIC/WACC1.52
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
With a Current ratio value of 0.84, 1EA perfoms like the industry average, outperforming 45.83% of the companies in the same 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.
1EA has a Quick ratio (0.84) which 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.
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
The Price/Earnings ratio is 30.88, which means the current valuation is very expensive for 1EA.
1EA's Price/Earnings ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 72.92% of the companies in the same industry.
1EA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.38 indicates a rather expensive valuation of 1EA.
Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
1EA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1EA is on the same level as its industry peers.
| 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.
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 15.28% 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.
1EA's Dividend Yield is a higher than the industry average which is at 2.32.
With a Dividend Yield of 0.38, 1EA pays less dividend than the S&P500 average, which is at 2.39.
| 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
18.91% of the earnings are spent on dividend by 1EA. This is a low number and 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.