ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:ERT • US2855121099
173.58 EUR
-0.36 (-0.21%)
Last: Dec 22, 2025, 07:00 PM
Taking everything into account, ERT scores 5 out of 10 in our fundamental rating. ERT was compared to 48 industry peers in the Entertainment industry. ERT has an excellent profitability rating, but there are some minor concerns on its financial health. ERT has a correct valuation and a medium growth rate.
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.
- Each year in the past 5 years ERT has been profitable.
- Each year in the past 5 years ERT had a positive operating cash flow.
1.2 Ratios
- ERT's Return On Assets of 7.47% is amongst the best of the industry. ERT outperforms 84.09% of its industry peers.
- Looking at the Return On Equity, with a value of 14.75%, ERT is in the better half of 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ERT is above the industry average of 9.48%.
| 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 better Profit Margin (12.14%) than 81.82% of its industry peers.
- ERT's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 17.11%, ERT belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
- ERT's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 78.79%, ERT is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- 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. Health
2.1 Basic Checks
- ERT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ERT has less shares outstanding than it did 1 year ago.
- ERT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ERT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.86 indicates that ERT is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.86, ERT belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
- 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.
- ERT has a better Debt to Equity ratio (0.25) than 72.73% of its industry peers.
| 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 (0.84) which is comparable to the rest of the industry.
- 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's Quick ratio of 0.84 is in line compared to the rest of the industry. ERT outperforms 45.45% of its industry peers.
| 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 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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.09, the valuation of ERT can be described as expensive.
- 79.55% of the companies in the same industry are more expensive than ERT, based on the Price/Earnings ratio.
- ERT is valuated rather expensively when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 21.37, the valuation of ERT can be described as rather expensive.
- 65.91% of the companies in the same industry are more expensive than ERT, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 27.77. ERT is valued slightly cheaper when compared to this.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERT is on the same level as its industry peers.
| 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. Dividend
5.1 Amount
- ERT has a yearly dividend return of 0.37%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.87, ERT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.37, ERT pays less dividend than the S&P500 average, which is at 1.81.
| 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%
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 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.
What is the profitability of ERT stock?
ELECTRONIC ARTS INC (ERT.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ELECTRONIC ARTS INC (ERT.DE) stock?
The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (ERT.DE) is 37.09 and the Price/Book (PB) ratio is 8.5.
What is the expected EPS growth for ELECTRONIC ARTS INC (ERT.DE) stock?
The Earnings per Share (EPS) of ELECTRONIC ARTS INC (ERT.DE) is expected to grow by 30.93% in the next year.