ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EA - US2855121099 - Common Stock
172.02 EUR
-0.96 (-0.55%)
Overall 1EA gets a fundamental rating of 6 out of 10. We evaluated 1EA against 44 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1EA was profitable.
In the past year 1EA had a positive cash flow from operations.
1EA had positive earnings in each of the past 5 years.
Each year in the past 5 years 1EA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.91%, 1EA belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
1EA's Return On Equity of 17.13% is fine compared to the rest of the industry. 1EA outperforms 79.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.83%, 1EA belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
1EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is above the industry average of 10.01%.
The last Return On Invested Capital (12.83%) for 1EA is above the 3 year average (12.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.13% | ||
| ROIC | 12.83% |
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
With an excellent Profit Margin value of 13.94%, 1EA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
1EA's Profit Margin has declined in the last couple of years.
1EA's Operating Margin of 19.83% is amongst the best of the industry. 1EA outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of 1EA has declined.
The Gross Margin of 1EA (79.14%) is better than 64.58% of its industry peers.
1EA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.83% | ||
| PM (TTM) | 13.94% | ||
| GM | 79.14% |
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
1EA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1EA has been reduced compared to 1 year ago.
The number of shares outstanding for 1EA has been reduced compared to 5 years ago.
The debt/assets ratio for 1EA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.05 indicates that 1EA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.05, 1EA belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
The Debt to FCF ratio of 1EA is 1.08, which is an excellent value as it means it would take 1EA, only 1.08 years of fcf income to pay off all of its debts.
1EA has a better Debt to FCF ratio (1.08) than 85.42% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that 1EA is not too dependend on debt financing.
The Debt to Equity ratio of 1EA (0.24) is better than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 7.05 |
ROIC/WACC1.52
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.84 indicates that 1EA may have some problems paying its short term obligations.
With a Current ratio value of 0.84, 1EA perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
1EA has a Quick Ratio of 0.84. 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 has a Quick ratio of 0.84. This is comparable to the rest of the industry: 1EA outperforms 47.92% 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 | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.06% over the past year.
The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
The Revenue has been growing slightly by 2.41% in the past year.
The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)2.06%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-51.92%
Revenue 1Y (TTM)2.41%
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.
Based on estimates for the next years, 1EA will show a small growth in Revenue. The Revenue will grow by 5.24% on average per year.
EPS Next Y26.96%
EPS Next 2Y17.76%
EPS Next 3Y15.28%
EPS Next 5Y9.25%
Revenue Next Year10.74%
Revenue Next 2Y7.69%
Revenue Next 3Y6.98%
Revenue Next 5Y5.24%
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.
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
With a Price/Earnings ratio of 30.88, 1EA can be considered very expensive at the moment.
72.92% of the companies in the same industry are more expensive than 1EA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.98. 1EA is around the same levels.
The Price/Forward Earnings ratio is 21.38, which indicates a rather expensive current valuation of 1EA.
1EA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1EA is cheaper than 70.83% of the companies in the same industry.
1EA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
1EA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1EA is more expensive than 64.58% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1EA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.35 | ||
| EV/EBITDA | 27.09 |
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.
1EA's earnings are expected to grow with 15.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)4.51
EPS Next 2Y17.76%
EPS Next 3Y15.28%
5. Dividend
5.1 Amount
1EA has a yearly dividend return of 0.38%, which is pretty low.
1EA's Dividend Yield is a higher than the industry average which is at 2.34.
With a Dividend Yield of 0.38, 1EA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1EA pays out 18.91% of its income as dividend. This is a sustainable payout ratio.
DP18.91%
EPS Next 2Y17.76%
EPS Next 3Y15.28%
BIT:1EA (9/30/2025, 7:00:00 PM)
172.02
-0.96 (-0.55%)
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 Cap42.89B
Revenue(TTM)7.47B
Net Income(TTM)1.04B
Analysts71.43
Price Target134.12 (-22.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.66
Dividend Growth(5Y)N/A
DP18.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.17%
Min EPS beat(2)7.97%
Max EPS beat(2)122.37%
EPS beat(4)3
Avg EPS beat(4)30.78%
Min EPS beat(4)-10.5%
Max EPS beat(4)122.37%
EPS beat(8)5
Avg EPS beat(8)17.91%
EPS beat(12)8
Avg EPS beat(12)14.56%
EPS beat(16)10
Avg EPS beat(16)16.44%
Revenue beat(2)1
Avg Revenue beat(2)4.92%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)11.74%
Revenue beat(4)1
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-1.19%
Revenue beat(16)7
Avg Revenue beat(16)-0.72%
PT rev (1m)-10.99%
PT rev (3m)-1.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36%
EPS NY rev (1m)2.01%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.65%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 21.38 | ||
| P/S | 6.64 | ||
| P/FCF | 28.35 | ||
| P/OCF | 25.11 | ||
| P/B | 8.16 | ||
| P/tB | 117.58 | ||
| EV/EBITDA | 27.09 |
EPS(TTM)5.57
EY3.24%
EPS(NY)8.04
Fwd EY4.68%
FCF(TTM)6.07
FCFY3.53%
OCF(TTM)6.85
OCFY3.98%
SpS25.91
BVpS21.09
TBVpS1.46
PEG (NY)1.15
PEG (5Y)4.51
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.13% | ||
| ROCE | 17.12% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.81% | ||
| ROICexgc | 81.17% | ||
| OM | 19.83% | ||
| PM (TTM) | 13.94% | ||
| GM | 79.14% | ||
| FCFM | 23.41% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 63.66% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.57% | ||
| Profit Quality | 167.95% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 7.05 |
F-Score7
WACC8.42%
ROIC/WACC1.52
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)2.06%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-51.92%
EPS Next Y26.96%
EPS Next 2Y17.76%
EPS Next 3Y15.28%
EPS Next 5Y9.25%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
Revenue Next Year10.74%
Revenue Next 2Y7.69%
Revenue Next 3Y6.98%
Revenue Next 5Y5.24%
EBIT growth 1Y0.61%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.3%
EBIT Next 3Y16.39%
EBIT Next 5Y12.34%
FCF growth 1Y-2.45%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-0.55%
OCF growth 3Y3.06%
OCF growth 5Y2.96%
ELECTRONIC ARTS INC / 1EA.MI FAQ
Can you provide the ChartMill fundamental rating for ELECTRONIC ARTS INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1EA.MI.
What is the valuation status of ELECTRONIC ARTS INC (1EA.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to ELECTRONIC ARTS INC (1EA.MI). This can be considered as Fairly Valued.
What is the profitability of 1EA stock?
ELECTRONIC ARTS INC (1EA.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1EA stock?
The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (1EA.MI) is 30.88 and the Price/Book (PB) ratio is 8.16.
Can you provide the financial health for 1EA stock?
The financial health rating of ELECTRONIC ARTS INC (1EA.MI) is 6 / 10.