204.25 USD
+0.1 (+0.05%)
204.25 USD
0 (0%)
EA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. EA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- EA had positive earnings in the past year.
- EA had a positive operating cash flow in the past year.
- In the past 5 years EA has always been profitable.
- EA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of EA (7.47%) is better than 83.75% of its industry peers.
- With an excellent Return On Equity value of 14.75%, EA belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- The Return On Invested Capital of EA (10.85%) is better than 88.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EA is above the industry average of 8.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 14.75% | ||
| ROIC | 10.85% |
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
- EA has a better Profit Margin (12.14%) than 86.25% of its industry peers.
- EA's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 17.11%, EA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- EA's Operating Margin has declined in the last couple of years.
- EA has a Gross Margin of 78.79%. This is amongst the best in the industry. EA outperforms 88.75% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.11% | ||
| PM (TTM) | 12.14% | ||
| GM | 78.79% |
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 EA is still creating some value.
- The number of shares outstanding for EA has been reduced compared to 1 year ago.
- EA has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for EA is higher compared to a year ago.
2.2 Solvency
- EA has an Altman-Z score of 6.87. This indicates that EA is financially healthy and has little risk of bankruptcy at the moment.
- EA has a better Altman-Z score (6.87) than 91.25% of its industry peers.
- EA has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
- The Debt to FCF ratio of EA (1.14) is better than 83.75% of its industry peers.
- EA has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of EA (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.87 |
ROIC/WACC1.05
WACC10.29%
2.3 Liquidity
- EA has a Current Ratio of 0.84. 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 has a Current ratio of 0.84. This is in the lower half of the industry: EA underperforms 63.75% of its industry peers.
- A Quick Ratio of 0.84 indicates that EA may have some problems paying its short term obligations.
- EA's Quick ratio of 0.84 is on the low side compared to the rest of the industry. EA is outperformed by 63.75% of its industry peers.
- EA 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 | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- EA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
- 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 -1.63%.
- EA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.15% yearly.
EPS 1Y (TTM)-21.43%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-43.72%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
3.2 Future
- The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
Revenue Next 5Y5.29%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.14, the valuation of EA can be described as expensive.
- Based on the Price/Earnings ratio, EA is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, EA is valued a bit more expensive.
- A Price/Forward Earnings ratio of 21.40 indicates a rather expensive valuation of EA.
- Based on the Price/Forward Earnings ratio, EA is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. EA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.14 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
- EA's Enterprise Value to EBITDA is on the same level as the industry average.
- EA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EA is cheaper than 73.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.9 | ||
| EV/EBITDA | 33.02 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of EA may justify a higher PE ratio.
- A more expensive valuation may be justified as EA's earnings are expected to grow with 15.83% in the coming years.
PEG (NY)1.2
PEG (5Y)5.43
EPS Next 2Y19.27%
EPS Next 3Y15.83%
5. Dividend
5.1 Amount
- EA has a yearly dividend return of 0.37%, which is pretty low.
- Compared to an average industry Dividend Yield of 8.69, EA pays a better dividend. On top of this EA pays more dividend than 81.25% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, EA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
- EA has been paying a dividend for over 5 years, so it has already some track record.
- EA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- EA pays out 21.92% of its income as dividend. This is a sustainable payout ratio.
DP21.92%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
204.25
+0.1 (+0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-02 2026-02-02/amc
Inst Owners100.77%
Inst Owner Change-0.13%
Ins Owners0.15%
Ins Owner Change-5.76%
Market Cap51.08B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target197.97 (-3.07%)
Short Float %2.62%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.77
Dividend Growth(5Y)N/A
DP21.92%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)56.28%
Min EPS beat(2)-9.82%
Max EPS beat(2)122.37%
EPS beat(4)2
Avg EPS beat(4)27.51%
Min EPS beat(4)-10.5%
Max EPS beat(4)122.37%
EPS beat(8)4
Avg EPS beat(8)15.01%
EPS beat(12)7
Avg EPS beat(12)13.5%
EPS beat(16)9
Avg EPS beat(16)13.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.73%
Revenue beat(12)2
Avg Revenue beat(12)-3.77%
Revenue beat(16)4
Avg Revenue beat(16)-2.56%
PT rev (1m)0%
PT rev (3m)11.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.71%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.14 | ||
| Fwd PE | 21.4 | ||
| P/S | 7.01 | ||
| P/FCF | 30.9 | ||
| P/OCF | 27.29 | ||
| P/B | 8.51 | ||
| P/tB | 139.2 | ||
| EV/EBITDA | 33.02 |
EPS(TTM)5.5
EY2.69%
EPS(NY)9.55
Fwd EY4.67%
FCF(TTM)6.61
FCFY3.24%
OCF(TTM)7.48
OCFY3.66%
SpS29.14
BVpS23.99
TBVpS1.47
PEG (NY)1.2
PEG (5Y)5.43
Graham Number54.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 14.75% | ||
| ROCE | 14.48% | ||
| ROIC | 10.85% | ||
| ROICexc | 12.71% | ||
| ROICexgc | 54.33% | ||
| OM | 17.11% | ||
| PM (TTM) | 12.14% | ||
| GM | 78.79% | ||
| FCFM | 22.68% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 69.52% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 22.27 | ||
| Cash Conversion | 119.85% | ||
| Profit Quality | 186.78% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.87 |
F-Score7
WACC10.29%
ROIC/WACC1.05
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)-21.43%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-43.72%
EPS Next Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
Revenue Next 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year41.75%
EBIT Next 3Y16.17%
EBIT Next 5Y10.74%
FCF growth 1Y-18.17%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-15.33%
OCF growth 3Y3.06%
OCF growth 5Y2.96%
ELECTRONIC ARTS INC / EA 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.
What is the profitability of EA stock?
ELECTRONIC ARTS INC (EA) has a profitability rating of 8 / 10.
What is the valuation of ELECTRONIC ARTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (EA) is 37.14 and the Price/Book (PB) ratio is 8.51.
How financially healthy is ELECTRONIC ARTS INC?
The financial health rating of ELECTRONIC ARTS INC (EA) is 7 / 10.