ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
BIT:1EA - Euronext Milan - US2855121099 - Common Stock - Currency: EUR
Taking everything into account, 1EA scores 6 out of 10 in our fundamental rating. 1EA was compared to 47 industry peers in the Entertainment industry. 1EA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1EA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1EA was profitable.
1EA had a positive operating cash flow in the past year.
Each year in the past 5 years 1EA has been profitable.
Each year in the past 5 years 1EA had a positive operating cash flow.
1.2 Ratios
1EA has a better Return On Assets (9.06%) than 85.71% of its industry peers.
1EA has a Return On Equity of 17.55%. This is in the better half of the industry: 1EA outperforms 73.47% of its industry peers.
With an excellent Return On Invested Capital value of 13.27%, 1EA belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1EA is above the industry average of 9.18%.
The 3 year average ROIC (12.06%) for 1EA is below the current ROIC(13.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 17.55% | ||
| ROIC | 13.27% |
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
1EA has a better Profit Margin (15.02%) than 83.67% of its industry peers.
In the last couple of years the Profit Margin of 1EA has declined.
1EA's Operating Margin of 21.13% is amongst the best of the industry. 1EA outperforms 91.84% of its industry peers.
1EA's Operating Margin has declined in the last couple of years.
1EA's Gross Margin of 79.32% is fine compared to the rest of the industry. 1EA outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of 1EA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 15.02% | ||
| GM | 79.32% |
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), 1EA is creating some value.
Compared to 1 year ago, 1EA has less shares outstanding
1EA has less shares outstanding than it did 5 years ago.
1EA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.57 indicates that 1EA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.57, 1EA belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
The Debt to FCF ratio of 1EA is 1.01, which is an excellent value as it means it would take 1EA, only 1.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1EA (1.01) is better than 87.76% of its industry peers.
1EA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.23, 1EA is doing good in the industry, outperforming 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.57 |
ROIC/WACC1.5
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 1EA may have some problems paying its short term obligations.
1EA has a Current ratio (0.95) which is comparable to the rest of the industry.
A Quick Ratio of 0.95 indicates that 1EA may have some problems paying its short term obligations.
1EA's Quick ratio of 0.95 is in line compared to the rest of the industry. 1EA outperforms 57.14% of its industry peers.
The current and quick ratio evaluation for 1EA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
1EA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
1EA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
1EA shows a decrease in Revenue. In the last year, the revenue decreased by -1.31%.
The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)-3.17%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-11.68%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%7.98%
3.2 Future
Based on estimates for the next years, 1EA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
1EA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.10% yearly.
EPS Next Y25.33%
EPS Next 2Y17.52%
EPS Next 3Y15.08%
EPS Next 5Y9.25%
Revenue Next Year9.69%
Revenue Next 2Y7.62%
Revenue Next 3Y6.56%
Revenue Next 5Y4.1%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.69 indicates a rather expensive valuation of 1EA.
Based on the Price/Earnings ratio, 1EA is valued a bit cheaper than 73.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. 1EA is around the same levels.
With a Price/Forward Earnings ratio of 18.11, 1EA is valued on the expensive side.
1EA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 67.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, 1EA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
1EA's Enterprise Value to EBITDA is on the same level as the industry average.
65.31% of the companies in the same industry are more expensive than 1EA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 19.52 |
4.3 Compensation for Growth
1EA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of 1EA may justify a higher PE ratio.
A more expensive valuation may be justified as 1EA's earnings are expected to grow with 15.08% in the coming years.
PEG (NY)0.9
PEG (5Y)3.32
EPS Next 2Y17.52%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
1EA has a yearly dividend return of 0.50%, which is pretty low.
1EA's Dividend Yield is a higher than the industry average which is at 1.79.
Compared to an average S&P500 Dividend Yield of 2.38, 1EA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1EA pays out 17.75% of its income as dividend. This is a sustainable payout ratio.
DP17.75%
EPS Next 2Y17.52%
EPS Next 3Y15.08%
BIT:1EA (5/12/2025, 7:00:00 PM)
134.8
+7.58 (+5.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners102.38%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap33.80B
Analysts74.74
Price Target136.01 (0.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.68
Dividend Growth(5Y)N/A
DP17.75%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-10.5%
Max EPS beat(2)7.97%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-10.5%
Max EPS beat(4)21.09%
EPS beat(8)5
Avg EPS beat(8)3.61%
EPS beat(12)8
Avg EPS beat(12)9.46%
EPS beat(16)10
Avg EPS beat(16)9.74%
Revenue beat(2)1
Avg Revenue beat(2)2.15%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)11.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)3
Avg Revenue beat(8)1.09%
Revenue beat(12)6
Avg Revenue beat(12)2.01%
Revenue beat(16)8
Avg Revenue beat(16)0.49%
PT rev (1m)-1.79%
PT rev (3m)-5.48%
EPS NQ rev (1m)-80.18%
EPS NQ rev (3m)-79.56%
EPS NY rev (1m)9.41%
EPS NY rev (3m)9.76%
Revenue NQ rev (1m)-2.36%
Revenue NQ rev (3m)-2.8%
Revenue NY rev (1m)3.09%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.11 | ||
| P/S | 5.12 | ||
| P/FCF | 20.56 | ||
| P/OCF | 18.38 | ||
| P/B | 5.98 | ||
| P/tB | 53.28 | ||
| EV/EBITDA | 19.52 |
EPS(TTM)5.94
EY4.41%
EPS(NY)7.44
Fwd EY5.52%
FCF(TTM)6.56
FCFY4.86%
OCF(TTM)7.34
OCFY5.44%
SpS26.33
BVpS22.53
TBVpS2.53
PEG (NY)0.9
PEG (5Y)3.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 17.55% | ||
| ROCE | 17.7% | ||
| ROIC | 13.27% | ||
| ROICexc | 17.75% | ||
| ROICexgc | 119.2% | ||
| OM | 21.13% | ||
| PM (TTM) | 15.02% | ||
| GM | 79.32% | ||
| FCFM | 24.9% |
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%
ROICexcg growth 3Y5.86%
ROICexcg 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 62.08% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 28.16 | ||
| Cash Conversion | 107.55% | ||
| Profit Quality | 165.75% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 5.57 |
F-Score7
WACC8.82%
ROIC/WACC1.5
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)-3.17%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-11.68%
EPS Next Y25.33%
EPS Next 2Y17.52%
EPS Next 3Y15.08%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%7.98%
Revenue Next Year9.69%
Revenue Next 2Y7.62%
Revenue Next 3Y6.56%
Revenue Next 5Y4.1%
EBIT growth 1Y-4.42%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.25%
EBIT Next 3Y14.95%
EBIT Next 5Y10.78%
FCF growth 1Y-12.19%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-10.19%
OCF growth 3Y3.06%
OCF growth 5Y2.96%