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 46 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 is valued correctly, 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.
1EA had positive earnings in each of the past 5 years.
In the past 5 years 1EA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1EA (9.06%) is better than 85.71% of its industry peers.
1EA's Return On Equity of 17.55% is fine compared to the rest of the industry. 1EA outperforms 73.47% of its industry peers.
1EA has a Return On Invested Capital of 13.27%. This is amongst the best in the industry. 1EA outperforms 83.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1EA is above the industry average of 9.33%.
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
With an excellent Profit Margin value of 15.02%, 1EA belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
1EA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 21.13%, 1EA belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Operating Margin of 1EA has declined.
1EA has a Gross Margin of 79.32%. This is in the better half of the industry: 1EA outperforms 71.43% of its industry peers.
1EA's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1EA is still creating some value.
The number of shares outstanding for 1EA has been reduced compared to 1 year ago.
Compared to 5 years ago, 1EA has less shares outstanding
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.
The Altman-Z score of 1EA (5.57) is better than 89.80% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.01, 1EA belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
1EA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
1EA's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. 1EA outperforms 67.35% of its industry peers.
| 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.
With a Current ratio value of 0.95, 1EA perfoms like the industry average, outperforming 57.14% of the companies in the same 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.
1EA does not score too well on the current and quick ratio evaluation. However, as it has 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 for 1EA have decreased by -3.17% in the last 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%.
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
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 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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.69, 1EA is valued on the expensive side.
73.47% of the companies in the same industry are more expensive than 1EA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, 1EA is valued at the same level.
With a Price/Forward Earnings ratio of 18.11, 1EA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EA indicates a somewhat cheap valuation: 1EA is cheaper than 67.35% of the companies listed in the same industry.
1EA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1EA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1EA is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.56 | ||
| EV/EBITDA | 19.52 |
4.3 Compensation for Growth
The 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
With a yearly dividend of 0.50%, 1EA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, 1EA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.50, 1EA pays less dividend than the S&P500 average, which is at 2.40.
| 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%