ELECTRONIC ARTS INC (EA) Fundamental Analysis & Valuation

NASDAQ:EA • US2855121099

Current stock price

202.91 USD
+0.24 (+0.12%)
Last:

This EA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. EA Profitability Analysis

1.1 Basic Checks

  • In the past year EA was profitable.
  • In the past year EA had a positive cash flow from operations.
  • In the past 5 years EA has always been profitable.
  • EA had a positive operating cash flow in each of the past 5 years.
EA Yearly Net Income VS EBIT VS OCF VS FCFEA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • The Return On Assets of EA (5.12%) is better than 84.81% of its industry peers.
  • Looking at the Return On Equity, with a value of 11.05%, EA belongs to the top of the industry, outperforming 86.08% of the companies in the same industry.
  • EA's Return On Invested Capital of 8.44% is amongst the best of the industry. EA outperforms 86.08% of its industry peers.
  • EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is significantly below the industry average of 159.06%.
Industry RankSector Rank
ROA 5.12%
ROE 11.05%
ROIC 8.44%
ROA(3y)8.17%
ROA(5y)7.3%
ROE(3y)15.16%
ROE(5y)13.3%
ROIC(3y)12.06%
ROIC(5y)10.47%
EA Yearly ROA, ROE, ROICEA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 9.31%, EA belongs to the top of the industry, outperforming 81.01% of the companies in the same industry.
  • EA's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 13.63%, EA belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
  • EA's Operating Margin has declined in the last couple of years.
  • EA has a better Gross Margin (78.26%) than 88.61% of its industry peers.
  • In the last couple of years the Gross Margin of EA has remained more or less at the same level.
Industry RankSector Rank
OM 13.63%
PM (TTM) 9.31%
GM 78.26%
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%
EA Yearly Profit, Operating, Gross MarginsEA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. EA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EA is creating some value.
  • Compared to 1 year ago, EA has less shares outstanding
  • Compared to 5 years ago, EA has less shares outstanding
  • EA has a worse debt/assets ratio than last year.
EA Yearly Shares OutstandingEA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
EA Yearly Total Debt VS Total AssetsEA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • EA has an Altman-Z score of 5.69. This indicates that EA is financially healthy and has little risk of bankruptcy at the moment.
  • EA has a better Altman-Z score (5.69) than 89.87% of its industry peers.
  • The Debt to FCF ratio of EA is 0.82, which is an excellent value as it means it would take EA, only 0.82 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.82, EA belongs to the top of the industry, outperforming 83.54% of the companies in the same industry.
  • EA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • EA has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Altman-Z 5.69
ROIC/WACC0.96
WACC8.77%
EA Yearly LT Debt VS Equity VS FCFEA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.93 indicates that EA may have some problems paying its short term obligations.
  • EA has a Current ratio (0.93) which is comparable to the rest of the industry.
  • EA has a Quick Ratio of 0.93. This is a bad value and indicates that EA is not financially healthy enough and could expect problems in meeting its short term obligations.
  • EA's Quick ratio of 0.93 is in line compared to the rest of the industry. EA outperforms 40.51% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.93
EA Yearly Current Assets VS Current LiabilitesEA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. EA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.02% over the past year.
  • The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
  • EA shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
  • The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)9.02%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%70.32%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
  • EA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.91% yearly.
EPS Next Y30.76%
EPS Next 2Y19.48%
EPS Next 3Y15.75%
EPS Next 5Y11.31%
Revenue Next Year12.32%
Revenue Next 2Y8.02%
Revenue Next 3Y6.3%
Revenue Next 5Y7.91%

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 accelerating.
EA Yearly Revenue VS EstimatesEA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
EA Yearly EPS VS EstimatesEA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

More info and screens

Find the best growth stocksShow best growing peers

5

4. EA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.09, the valuation of EA can be described as expensive.
  • 83.54% of the companies in the same industry are more expensive than EA, based on the Price/Earnings ratio.
  • EA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 21.18 indicates a rather expensive valuation of EA.
  • 84.81% of the companies in the same industry are more expensive than EA, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of EA to the average of the S&P500 Index (22.29), we can say EA is valued inline with the index average.
Industry RankSector Rank
PE 27.09
Fwd PE 21.18
EA Price Earnings VS Forward Price EarningsEA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EA is on the same level as its industry peers.
  • 79.75% of the companies in the same industry are more expensive than EA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.09
EV/EBITDA 37.71
EA Per share dataEA 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.
  • EA has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as EA's earnings are expected to grow with 15.75% in the coming years.
PEG (NY)0.88
PEG (5Y)3.96
EPS Next 2Y19.48%
EPS Next 3Y15.75%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.38%, EA is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 10.57, EA pays a better dividend. On top of this EA pays more dividend than 83.54% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, EA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.38%

5.2 History

  • EA has been paying a dividend for over 5 years, so it has already some track record.
  • As EA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
EA Yearly Dividends per shareEA Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • EA pays out 28.09% of its income as dividend. This is a sustainable payout ratio.
DP28.09%
EPS Next 2Y19.48%
EPS Next 3Y15.75%
EA Yearly Income VS Free CF VS DividendEA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
EA Dividend Payout.EA Dividend Payout, showing the Payout Ratio.EA Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

EA Fundamentals: All Metrics, Ratios and Statistics

ELECTRONIC ARTS INC

NASDAQ:EA (4/27/2026, 11:25:26 AM)

202.91

+0.24 (+0.12%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners95.13%
Inst Owner Change0.22%
Ins Owners0.15%
Ins Owner Change-5.91%
Market Cap50.78B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts70
Price Target199.44 (-1.71%)
Short Float %4.36%
Short Ratio3.99
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
Yearly Dividend0.77
Dividend Growth(5Y)N/A
DP28.09%
Div Incr Years0
Div Non Decr Years5
Ex-Date02-25
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.35%
Min EPS beat(2)-9.82%
Max EPS beat(2)-0.89%
EPS beat(4)2
Avg EPS beat(4)29.91%
Min EPS beat(4)-9.82%
Max EPS beat(4)122.37%
EPS beat(8)4
Avg EPS beat(8)15.15%
EPS beat(12)7
Avg EPS beat(12)14.34%
EPS beat(16)9
Avg EPS beat(16)14.02%
Revenue beat(2)1
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)3.25%
Revenue beat(4)2
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)11.74%
Revenue beat(8)2
Avg Revenue beat(8)-1.84%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.98%
PT rev (3m)0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)-2.3%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 27.09
Fwd PE 21.18
P/S 6.95
P/FCF 22.09
P/OCF 20.13
P/B 8.25
P/tB 93.17
EV/EBITDA 37.71
EPS(TTM)7.49
EY3.69%
EPS(NY)9.58
Fwd EY4.72%
FCF(TTM)9.19
FCFY4.53%
OCF(TTM)10.08
OCFY4.97%
SpS29.19
BVpS24.58
TBVpS2.18
PEG (NY)0.88
PEG (5Y)3.96
Graham Number64.3655 (-68.28%)
Profitability
Industry RankSector Rank
ROA 5.12%
ROE 11.05%
ROCE 11.26%
ROIC 8.44%
ROICexc 12.56%
ROICexgc 220.94%
OM 13.63%
PM (TTM) 9.31%
GM 78.26%
FCFM 31.47%
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-Score6
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Debt/EBITDA 1.13
Cap/Depr 69.91%
Cap/Sales 3.05%
Interest Coverage 17.79
Cash Conversion 191.79%
Profit Quality 338.09%
Current Ratio 0.93
Quick Ratio 0.93
Altman-Z 5.69
F-Score6
WACC8.77%
ROIC/WACC0.96
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)9.02%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%70.32%
EPS Next Y30.76%
EPS Next 2Y19.48%
EPS Next 3Y15.75%
EPS Next 5Y11.31%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%
Revenue Next Year12.32%
Revenue Next 2Y8.02%
Revenue Next 3Y6.3%
Revenue Next 5Y7.91%
EBIT growth 1Y-35.41%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year42.31%
EBIT Next 3Y16.57%
EBIT Next 5Y11.28%
FCF growth 1Y6.58%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y7.23%
OCF growth 3Y3.06%
OCF growth 5Y2.96%

ELECTRONIC ARTS INC / EA Fundamental Analysis FAQ

What is the fundamental rating for EA stock?

ChartMill assigns a fundamental rating of 6 / 10 to EA.


What is the valuation status of ELECTRONIC ARTS INC (EA) stock?

ChartMill assigns a valuation rating of 5 / 10 to ELECTRONIC ARTS INC (EA). This can be considered as Fairly Valued.


How profitable is ELECTRONIC ARTS INC (EA) stock?

ELECTRONIC ARTS INC (EA) has a profitability rating of 7 / 10.


Can you provide the financial health for EA stock?

The financial health rating of ELECTRONIC ARTS INC (EA) is 6 / 10.


Can you provide the dividend sustainability for EA stock?

The dividend rating of ELECTRONIC ARTS INC (EA) is 4 / 10 and the dividend payout ratio is 28.09%.