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ELECTRONIC ARTS INC (1EA.MI) Stock Fundamental Analysis

BIT:1EA - Euronext Milan - US2855121099 - Common Stock - Currency: EUR

134.8  +7.58 (+5.96%)

Fundamental Rating

6

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.


Dividend Valuation Growth Profitability Health

8

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.
1EA.MI Yearly Net Income VS EBIT VS OCF VS FCF1EA.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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 RankSector 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%
1EA.MI Yearly ROA, ROE, ROIC1EA.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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 RankSector 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%
1EA.MI Yearly Profit, Operating, Gross Margins1EA.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

7

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.
1EA.MI Yearly Shares Outstanding1EA.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
1EA.MI Yearly Total Debt VS Total Assets1EA.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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 RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.01
Altman-Z 5.57
ROIC/WACC1.5
WACC8.82%
1EA.MI Yearly LT Debt VS Equity VS FCF1EA.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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 RankSector Rank
Current Ratio 0.95
Quick Ratio 0.95
1EA.MI Yearly Current Assets VS Current Liabilites1EA.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

3

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.
1EA.MI Yearly Revenue VS Estimates1EA.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
1EA.MI Yearly EPS VS Estimates1EA.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

5

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 RankSector Rank
PE 22.69
Fwd PE 18.11
1EA.MI Price Earnings VS Forward Price Earnings1EA.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 20.56
EV/EBITDA 19.52
1EA.MI Per share data1EA.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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%

3

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 RankSector 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%
1EA.MI Yearly Income VS Free CF VS Dividend1EA.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
1EA.MI Dividend Payout.1EA.MI Dividend Payout, showing the Payout Ratio.1EA.MI Dividend Payout.PayoutRetained Earnings

ELECTRONIC ARTS INC

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)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%