ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
BIT:1EA - US2855121099 - Common Stock
148.4 EUR
+16.14 (+12.2%)
We assign a fundamental rating of 6 out of 10 to 1EA. 1EA was compared to 42 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making 1EA a very profitable company, without any liquidiy or solvency issues. 1EA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1EA had positive earnings in the past year.
In the past year 1EA had a positive cash flow from operations.
In the past 5 years 1EA has always been profitable.
Each year in the past 5 years 1EA had a positive operating cash flow.
1.2 Ratios
1EA's Return On Assets of 9.06% is amongst the best of the industry. 1EA outperforms 92.86% of its industry peers.
The Return On Equity of 1EA (17.55%) is better than 80.95% of its industry peers.
1EA has a better Return On Invested Capital (13.27%) than 88.10% of its industry peers.
1EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is in line with the industry average of 10.22%.
The last Return On Invested Capital (13.27%) for 1EA is above the 3 year average (12.06%), which is a sign of increasing profitability.
| 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 Profit Margin of 15.02%. This is amongst the best in the industry. 1EA outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of 1EA has declined.
1EA has a better Operating Margin (21.13%) than 92.86% of its industry peers.
In the last couple of years the Operating Margin of 1EA has declined.
1EA's Gross Margin of 79.32% is fine compared to the rest of the industry. 1EA outperforms 69.05% 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
Compared to 5 years ago, 1EA has less shares outstanding
Compared to 1 year ago, 1EA has a worse debt to assets ratio.
2.2 Solvency
1EA has an Altman-Z score of 6.12. This indicates that 1EA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.12, 1EA belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
1EA has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
1EA's Debt to FCF ratio of 1.01 is amongst the best of the industry. 1EA outperforms 90.48% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that 1EA is not too dependend on debt financing.
The Debt to Equity ratio of 1EA (0.23) is better than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 6.12 |
ROIC/WACC1.55
WACC8.55%
2.3 Liquidity
1EA has a Current Ratio of 0.95. This is a bad value and indicates that 1EA is not financially healthy enough and could expect problems in meeting its short term obligations.
1EA's Current ratio of 0.95 is fine compared to the rest of the industry. 1EA outperforms 61.90% of its industry peers.
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 fine compared to the rest of the industry. 1EA outperforms 61.90% 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
The Earnings Per Share has been growing slightly by 0.79% over the past year.
The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
1EA shows a decrease in Revenue. In the last year, the revenue decreased by -1.31%.
Measured over the past years, 1EA shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
EPS 1Y (TTM)0.79%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-67.31%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
3.2 Future
1EA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
The Revenue is expected to grow by 4.10% on average over the next years.
EPS Next Y23.39%
EPS Next 2Y16.81%
EPS Next 3Y14.28%
EPS Next 5Y9.25%
Revenue Next Year9.22%
Revenue Next 2Y7.5%
Revenue Next 3Y6.35%
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 27.33 indicates a quite expensive valuation of 1EA.
Compared to the rest of the industry, the Price/Earnings ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 71.43% of the companies listed in the same industry.
1EA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.99, 1EA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, 1EA is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, 1EA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1EA.
Based on the Price/Free Cash Flow ratio, 1EA is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.51 | ||
| EV/EBITDA | 22.35 |
4.3 Compensation for Growth
1EA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1EA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1EA's earnings are expected to grow with 14.28% in the coming years.
PEG (NY)1.17
PEG (5Y)4
EPS Next 2Y16.81%
EPS Next 3Y14.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, 1EA is not a good candidate for dividend investing.
1EA's Dividend Yield is a higher than the industry average which is at 2.05.
With a Dividend Yield of 0.50, 1EA pays less dividend than the S&P500 average, which is at 2.32.
| 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 2Y16.81%
EPS Next 3Y14.28%
BIT:1EA (8/27/2025, 7:00:00 PM)
148.4
+16.14 (+12.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners102.66%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap37.29B
Analysts75.79
Price Target148.19 (-0.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.67
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)8.96%
PT rev (3m)16.53%
EPS NQ rev (1m)3.67%
EPS NQ rev (3m)-79.45%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)7.71%
Revenue NQ rev (1m)3.04%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 18.99 | ||
| P/S | 5.85 | ||
| P/FCF | 23.51 | ||
| P/OCF | 21.01 | ||
| P/B | 6.84 | ||
| P/tB | 60.93 | ||
| EV/EBITDA | 22.35 |
EPS(TTM)5.43
EY3.66%
EPS(NY)7.81
Fwd EY5.27%
FCF(TTM)6.31
FCFY4.25%
OCF(TTM)7.06
OCFY4.76%
SpS25.35
BVpS21.69
TBVpS2.44
PEG (NY)1.17
PEG (5Y)4
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 | 6.12 |
F-Score7
WACC8.55%
ROIC/WACC1.55
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)0.79%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-67.31%
EPS Next Y23.39%
EPS Next 2Y16.81%
EPS Next 3Y14.28%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
Revenue Next Year9.22%
Revenue Next 2Y7.5%
Revenue Next 3Y6.35%
Revenue Next 5Y4.1%
EBIT growth 1Y-4.42%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.25%
EBIT Next 3Y14.8%
EBIT Next 5Y11.53%
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%