ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ERT - US2855121099 - Common Stock
174.12 EUR
-0.08 (-0.05%)
Taking everything into account, ERT scores 5 out of 10 in our fundamental rating. ERT was compared to 44 industry peers in the Entertainment industry. While ERT has a great profitability rating, there are some minor concerns on its financial health. ERT is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years ERT has always been profitable.
ERT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERT's Return On Assets of 7.47% is amongst the best of the industry. ERT outperforms 86.36% of its industry peers.
The Return On Equity of ERT (14.75%) is better than 75.00% of its industry peers.
ERT's Return On Invested Capital of 10.85% is amongst the best of the industry. ERT outperforms 84.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERT is in line with the industry average of 10.17%.
| 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
Looking at the Profit Margin, with a value of 12.14%, ERT is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
ERT's Profit Margin has declined in the last couple of years.
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.
ERT's Operating Margin has declined in the last couple of years.
ERT has a Gross Margin of 78.79%. This is in the better half of the industry: ERT outperforms 65.91% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERT is still creating some value.
Compared to 1 year ago, ERT has less shares outstanding
The number of shares outstanding for ERT has been reduced compared to 5 years ago.
Compared to 1 year ago, ERT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.82 indicates that ERT is not in any danger for bankruptcy at the moment.
ERT has a Altman-Z score of 6.82. This is amongst the best in the industry. ERT outperforms 90.91% of its industry peers.
The Debt to FCF ratio of ERT is 1.14, which is an excellent value as it means it would take ERT, only 1.14 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.14, ERT belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
ERT has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ERT (0.25) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.82 |
ROIC/WACC1.28
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.84 indicates that ERT may have some problems paying 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.
ERT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
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
ERT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
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
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
With a Price/Earnings ratio of 36.73, ERT can be considered very expensive at the moment.
72.73% of the companies in the same industry are more expensive than ERT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.37, ERT is valued a bit more expensive.
The Price/Forward Earnings ratio is 21.67, 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 68.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ERT to the average of the S&P500 Index (36.20), we can say ERT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.73 | ||
| Fwd PE | 21.67 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ERT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.6 | ||
| EV/EBITDA | 32.72 |
4.3 Compensation for Growth
The 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.
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)5.37
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 2.36, ERT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.38, ERT pays less dividend than the S&P500 average, which is at 2.32.
| 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
ERT pays out 21.92% of its income as dividend. This is a sustainable payout ratio.
DP21.92%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
FRA:ERT (12/3/2025, 7:00:00 PM)
174.12
-0.08 (-0.05%)
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 Cap43.55B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target170.67 (-1.98%)
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)27.33%
PT rev (3m)13.57%
EPS NQ rev (1m)6.76%
EPS NQ rev (3m)9.21%
EPS NY rev (1m)0.96%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)6.13%
Revenue NQ rev (3m)7.37%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.73 | ||
| Fwd PE | 21.67 | ||
| P/S | 6.94 | ||
| P/FCF | 30.6 | ||
| P/OCF | 27.02 | ||
| P/B | 8.43 | ||
| P/tB | 137.81 | ||
| EV/EBITDA | 32.72 |
EPS(TTM)4.74
EY2.72%
EPS(NY)8.04
Fwd EY4.62%
FCF(TTM)5.69
FCFY3.27%
OCF(TTM)6.44
OCFY3.7%
SpS25.09
BVpS20.66
TBVpS1.26
PEG (NY)1.32
PEG (5Y)5.37
Graham Number46.94
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 | 6.82 |
F-Score7
WACC8.45%
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.