ELECTRONIC ARTS INC (ERT.DE) Fundamental Analysis & Valuation
FRA:ERT • US2855121099
Current stock price
173.58 EUR
-0.36 (-0.21%)
Last:
This ERT.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ERT.DE Profitability Analysis
1.1 Basic Checks
- In the past year ERT was profitable.
- ERT had a positive operating cash flow in the past year.
- ERT had positive earnings in each of the past 5 years.
- Each year in the past 5 years ERT had a positive operating cash flow.
1.2 Ratios
- ERT has a better Return On Assets (7.47%) than 84.09% of its industry peers.
- With a decent Return On Equity value of 14.75%, ERT is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- The Return On Invested Capital of ERT (10.85%) is better than 81.82% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ERT is above the industry average of 9.94%.
| 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's Profit Margin of 12.14% is amongst the best of the industry. ERT outperforms 81.82% 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 93.18% of the companies in the same industry.
- In the last couple of years the Operating Margin of ERT has declined.
- ERT's Gross Margin of 78.79% is fine compared to the rest of the industry. ERT outperforms 68.18% of its industry peers.
- ERT's Gross Margin has been stable in the last couple of years.
| 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. ERT.DE Health Analysis
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.
- ERT has a worse debt/assets ratio than last year.
2.2 Solvency
- ERT has an Altman-Z score of 6.86. This indicates that ERT is financially healthy and has little risk of bankruptcy at the moment.
- ERT's Altman-Z score of 6.86 is amongst the best of the industry. ERT outperforms 88.64% 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.
- The Debt to FCF ratio of ERT (1.14) is better than 86.36% of its industry peers.
- ERT has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.25, ERT is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.86 |
ROIC/WACC1.04
WACC10.44%
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.
- ERT has a Current ratio of 0.84. This is comparable to the rest of the industry: ERT outperforms 43.18% of its industry peers.
- ERT has a Quick 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.
- ERT has a Quick ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. ERT.DE Growth Analysis
3.1 Past
- ERT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
- 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.
- 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, ERT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
- The Revenue is expected to grow by 5.29% on average over the next years.
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
- 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. ERT.DE Valuation Analysis
4.1 Price/Earnings Ratio
- ERT is valuated quite expensively with a Price/Earnings ratio of 37.09.
- ERT's Price/Earnings ratio is a bit cheaper when compared to the industry. ERT is cheaper than 79.55% 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 26.91.
- ERT is valuated rather expensively with a Price/Forward Earnings ratio of 21.37.
- Based on the Price/Forward Earnings ratio, ERT is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.69. ERT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERT is on the same level as its industry peers.
- ERT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.86 | ||
| EV/EBITDA | 32.99 |
4.3 Compensation for Growth
- ERT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ERT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ERT's earnings are expected to grow with 15.83% in the coming years.
PEG (NY)1.2
PEG (5Y)5.42
EPS Next 2Y19.27%
EPS Next 3Y15.83%
5. ERT.DE Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.37%, ERT is not a good candidate for dividend investing.
- ERT's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.37, ERT pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- ERT pays out 21.92% of its income as dividend. This is a sustainable payout ratio.
DP21.92%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
ERT.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:ERT (12/22/2025, 7:00:00 PM)
173.58
-0.36 (-0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-02 2026-02-02/amc
Inst Owners100.77%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap43.41B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target169.75 (-2.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.65
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)-0.54%
PT rev (3m)26.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.71%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 21.37 | ||
| P/S | 7 | ||
| P/FCF | 30.86 | ||
| P/OCF | 27.25 | ||
| P/B | 8.5 | ||
| P/tB | 139 | ||
| EV/EBITDA | 32.99 |
EPS(TTM)4.68
EY2.7%
EPS(NY)8.12
Fwd EY4.68%
FCF(TTM)5.62
FCFY3.24%
OCF(TTM)6.37
OCFY3.67%
SpS24.8
BVpS20.42
TBVpS1.25
PEG (NY)1.2
PEG (5Y)5.42
Graham Number46.37
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 | 6.86 |
F-Score7
WACC10.44%
ROIC/WACC1.04
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 Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
Revenue Next 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year41.75%
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 Fundamental Analysis 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 for ERT stock?
ChartMill assigns a valuation rating of 4 / 10 to ELECTRONIC ARTS INC (ERT.DE). This can be considered as Fairly Valued.
How profitable is ELECTRONIC ARTS INC (ERT.DE) 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.
Is the dividend of ELECTRONIC ARTS INC sustainable?
The dividend rating of ELECTRONIC ARTS INC (ERT.DE) is 3 / 10 and the dividend payout ratio is 21.92%.