ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ERT - US2855121099 - Common Stock
173.58 EUR
-0.36 (-0.21%)
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. While ERT has a great profitability rating, 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
- In the past year ERT was profitable.
- In the past year ERT had a positive cash flow from operations.
- Each year in the past 5 years ERT has been profitable.
- In the past 5 years ERT always reported a positive cash flow from operatings.
1.2 Ratios
- ERT has a Return On Assets of 7.47%. This is amongst the best in the industry. ERT outperforms 84.09% of its industry peers.
- ERT has a Return On Equity of 14.75%. This is in the better half of the industry: ERT outperforms 72.73% of its industry peers.
- ERT has a Return On Invested Capital of 10.85%. This is amongst the best in the industry. ERT outperforms 81.82% 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 9.05%.
| 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.
- ERT's Profit Margin has declined in the last couple of years.
- ERT's Operating Margin of 17.11% is amongst the best of the industry. ERT outperforms 93.18% of its industry peers.
- ERT's Operating Margin has declined in the last couple of years.
- 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERT is creating some value.
- Compared to 1 year ago, ERT has less shares outstanding
- ERT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ERT has a worse debt to assets ratio.
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.
- Looking at the Debt to FCF ratio, with a value of 1.14, ERT belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
- A Debt/Equity ratio of 0.25 indicates that ERT is not too dependend on debt financing.
- ERT has a Debt to Equity ratio of 0.25. This is in the better half of the industry: ERT outperforms 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's Current ratio of 0.84 is in line compared 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'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.
- The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
- Looking at the last year, ERT shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last year.
- ERT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.15% yearly.
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
- The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
- 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
- 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
- Based on the Price/Earnings ratio of 37.09, the valuation of ERT can be described as expensive.
- 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.
- When comparing the Price/Earnings ratio of ERT to the average of the S&P500 Index (27.38), we can say ERT is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 21.37, the valuation of ERT can be described as rather expensive.
- 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.
- ERT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.09 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
- ERT's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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
- The 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.
- 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.
- ERT's Dividend Yield is a higher than the industry average which is at 0.78.
- With a Dividend Yield of 0.37, ERT pays less dividend than the S&P500 average, which is at 1.85.
| 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.