ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe - FRA:ERT - US2855121099 - Common Stock
173.94 EUR
+0.5 (+0.29%)
Overall ERT gets a fundamental rating of 5 out of 10. We evaluated ERT against 45 industry peers in the Entertainment industry. ERT scores excellent on profitability, but there are some minor concerns on its financial health. ERT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ERT had positive earnings in the past year.
ERT had a positive operating cash flow in the past year.
In the past 5 years ERT has always been profitable.
In the past 5 years ERT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.47%, ERT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With a decent Return On Equity value of 14.75%, ERT is doing good in the industry, outperforming 77.78% of the companies in the same industry.
ERT has a Return On Invested Capital of 10.85%. This is amongst the best in the industry. ERT outperforms 84.44% of its industry peers.
ERT had an Average Return On Invested Capital over the past 3 years of 12.06%. This is above the industry average of 9.82%.
| 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
ERT has a Profit Margin of 12.14%. This is in the better half of the industry: ERT outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of ERT has declined.
With an excellent Operating Margin value of 17.11%, ERT belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
ERT's Operating Margin has declined in the last couple of years.
The Gross Margin of ERT (78.79%) is better than 64.44% of its industry peers.
In the last couple of years the Gross Margin of ERT 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERT is creating some value.
ERT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ERT has been reduced compared to 5 years ago.
The debt/assets ratio for ERT is higher compared to a year ago.
2.2 Solvency
ERT has an Altman-Z score of 6.79. This indicates that ERT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ERT (6.79) is better than 95.56% of its industry peers.
ERT has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
ERT has a better Debt to FCF ratio (1.14) than 86.67% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ERT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, ERT is doing good in the industry, outperforming 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.79 |
ROIC/WACC1.28
WACC8.5%
2.3 Liquidity
ERT has a Current Ratio of 0.84. This is a bad value and indicates that ERT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.84, ERT perfoms like the industry average, outperforming 48.89% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that ERT may have some problems paying its short term obligations.
The Quick ratio of ERT (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
The earnings per share for ERT have decreased strongly by -21.43% in the last year.
Measured over the past 5 years, ERT shows a small growth in Earnings Per Share. The EPS has been growing by 6.84% on average per year.
The Revenue has decreased by -1.63% in the past year.
Measured over the past years, ERT shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
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, ERT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
ERT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y27.84%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
EPS Next 5Y9.25%
Revenue Next Year11.64%
Revenue Next 2Y7.51%
Revenue Next 3Y6.57%
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 36.62 indicates a quite expensive valuation of ERT.
Based on the Price/Earnings ratio, ERT is valued a bit cheaper than 68.89% of the companies in the same industry.
ERT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 21.60, which indicates a rather expensive current valuation of ERT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERT indicates a somewhat cheap valuation: ERT is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, ERT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.62 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
ERT's Enterprise Value to EBITDA ratio is in line with the industry average.
ERT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.41 | ||
| EV/EBITDA | 32.51 |
4.3 Compensation for Growth
ERT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ERT may justify a higher PE ratio.
ERT's earnings are expected to grow with 15.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)5.35
EPS Next 2Y17.94%
EPS Next 3Y15.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, ERT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.20, ERT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ERT'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 Years0
Div Non Decr Years4
5.3 Sustainability
21.92% of the earnings are spent on dividend by ERT. This is a low number and sustainable payout ratio.
DP21.92%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
FRA:ERT (11/18/2025, 7:00:00 PM)
173.94
+0.5 (+0.29%)
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 Cap43.37B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target169.66 (-2.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.66
Dividend Growth(5Y)N/A
DP21.92%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)56.28%
Min EPS beat(2)-9.82%
Max EPS beat(2)122.37%
EPS beat(4)2
Avg EPS beat(4)27.51%
Min EPS beat(4)-10.5%
Max EPS beat(4)122.37%
EPS beat(8)4
Avg EPS beat(8)15.01%
EPS beat(12)7
Avg EPS beat(12)13.5%
EPS beat(16)9
Avg EPS beat(16)13.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.73%
Revenue beat(12)2
Avg Revenue beat(12)-4.1%
Revenue beat(16)4
Avg Revenue beat(16)-2.8%
PT rev (1m)26.57%
PT rev (3m)13.29%
EPS NQ rev (1m)7.95%
EPS NQ rev (3m)13.52%
EPS NY rev (1m)0.69%
EPS NY rev (3m)3.61%
Revenue NQ rev (1m)6.67%
Revenue NQ rev (3m)6.51%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.62 | ||
| Fwd PE | 21.6 | ||
| P/S | 6.9 | ||
| P/FCF | 30.41 | ||
| P/OCF | 26.85 | ||
| P/B | 8.38 | ||
| P/tB | 136.96 | ||
| EV/EBITDA | 32.51 |
EPS(TTM)4.75
EY2.73%
EPS(NY)8.05
Fwd EY4.63%
FCF(TTM)5.72
FCFY3.29%
OCF(TTM)6.48
OCFY3.72%
SpS25.22
BVpS20.76
TBVpS1.27
PEG (NY)1.32
PEG (5Y)5.35
Graham Number47.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 14.75% | ||
| ROCE | 14.48% | ||
| ROIC | 10.85% | ||
| ROICexc | 12.71% | ||
| ROICexgc | 54.33% | ||
| OM | 17.11% | ||
| PM (TTM) | 12.14% | ||
| GM | 78.79% | ||
| FCFM | 22.68% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 69.52% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 22.27 | ||
| Cash Conversion | 119.85% | ||
| Profit Quality | 186.78% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.79 |
F-Score7
WACC8.5%
ROIC/WACC1.28
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)-21.43%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-43.72%
EPS Next Y27.84%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year11.64%
Revenue Next 2Y7.51%
Revenue Next 3Y6.57%
Revenue Next 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.3%
EBIT Next 3Y16.17%
EBIT Next 5Y10.74%
FCF growth 1Y-18.17%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-15.33%
OCF growth 3Y3.06%
OCF growth 5Y2.96%
ELECTRONIC ARTS INC / ERT.DE FAQ
What is the ChartMill fundamental rating of ELECTRONIC ARTS INC (ERT.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERT.DE.
What is the valuation status of ELECTRONIC ARTS INC (ERT.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ELECTRONIC ARTS INC (ERT.DE). This can be considered as Fairly Valued.
What is the profitability of ERT stock?
ELECTRONIC ARTS INC (ERT.DE) has a profitability rating of 7 / 10.
How financially healthy is ELECTRONIC ARTS INC?
The financial health rating of ELECTRONIC ARTS INC (ERT.DE) is 6 / 10.
Can you provide the expected EPS growth for ERT stock?
The Earnings per Share (EPS) of ELECTRONIC ARTS INC (ERT.DE) is expected to grow by 27.84% in the next year.