ELECTRONIC ARTS INC (EA) Stock Fundamental Analysis

NASDAQ:EA • US2855121099

199.88 USD
-0.35 (-0.17%)
At close: Feb 19, 2026
199.88 USD
0 (0%)
After Hours: 2/19/2026, 4:30:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, EA scores 7 out of 10 in our fundamental rating. EA was compared to 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. These ratings would make EA suitable for quality investing!


Dividend Valuation Growth Profitability Health

8

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.
  • Each year in the past 5 years EA has been profitable.
  • Each year in the past 5 years EA had a positive operating cash flow.
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

  • EA has a Return On Assets of 5.12%. This is amongst the best in the industry. EA outperforms 83.75% of its industry peers.
  • The Return On Equity of EA (11.05%) is better than 81.25% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.44%, EA belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for EA is above the industry average of 7.77%.
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 83.75% of the companies in the same industry.
  • EA's Profit Margin has declined in the last couple of years.
  • EA has a better Operating Margin (13.63%) than 82.50% of its industry peers.
  • EA's Operating Margin has declined in the last couple of years.
  • The Gross Margin of EA (78.26%) is better than 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 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • EA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, EA has less shares outstanding
  • The number of shares outstanding for EA has been reduced compared to 5 years ago.
  • Compared to 1 year ago, EA has a worse debt to assets ratio.
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

  • An Altman-Z score of 5.64 indicates that EA is not in any danger for bankruptcy at the moment.
  • EA's Altman-Z score of 5.64 is amongst the best of the industry. EA outperforms 90.00% of its industry peers.
  • EA has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
  • EA's Debt to FCF ratio of 0.82 is amongst the best of the industry. EA outperforms 85.00% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that EA is not too dependend on debt financing.
  • The Debt to Equity ratio of EA (0.24) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Altman-Z 5.64
ROIC/WACC0.91
WACC9.31%
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

  • EA has a Current 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.
  • Looking at the Current ratio, with a value of 0.93, EA is doing worse than 60.00% of the companies in the same industry.
  • A Quick Ratio of 0.93 indicates that EA may have some problems paying its short term obligations.
  • EA's Quick ratio of 0.93 is on the low side compared to the rest of the industry. EA is outperformed by 60.00% 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 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

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

5

3. Growth

3.1 Past

  • EA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.02%, which is quite good.
  • The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
  • Looking at the last year, EA shows a decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
  • 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

  • EA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
  • EA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y11.31%
Revenue Next Year12.36%
Revenue Next 2Y7.89%
Revenue Next 3Y6.91%
Revenue Next 5Y9%

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

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 26.69, the valuation of EA can be described as expensive.
  • 81.25% 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 27.27.
  • EA is valuated rather expensively with a Price/Forward Earnings ratio of 21.15.
  • Based on the Price/Forward Earnings ratio, EA is valued cheaper than 81.25% of the companies in the same industry.
  • EA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.16.
Industry RankSector Rank
PE 26.69
Fwd PE 21.15
EA Price Earnings VS Forward Price EarningsEA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • EA's Enterprise Value to EBITDA ratio is in line with the industry average.
  • EA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EA is cheaper than 83.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.76
EV/EBITDA 37.25
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

  • EA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • EA has an outstanding profitability rating, which may justify a higher PE ratio.
  • EA's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)3.9
EPS Next 2Y18.68%
EPS Next 3Y15.23%

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

4

5. Dividend

5.1 Amount

  • EA has a yearly dividend return of 0.38%, which is pretty low.
  • Compared to an average industry Dividend Yield of 7.46, 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 1.85, 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.
  • EA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
EA Yearly Dividends per shareEA Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 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 2Y18.68%
EPS Next 3Y15.23%
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

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Find the best dividend stocksShow peers with best dividend

ELECTRONIC ARTS INC

NASDAQ:EA (2/19/2026, 4:30:02 PM)

After market: 199.88 0 (0%)

199.88

-0.35 (-0.17%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners100.77%
Inst Owner Change-7.09%
Ins Owners0.15%
Ins Owner Change-6.54%
Market Cap50.02B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts67.65
Price Target197.97 (-0.96%)
Short Float %3.79%
Short Ratio3.95
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
Yearly Dividend0.77
Dividend Growth(5Y)N/A
DP28.09%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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%
PT rev (3m)0.71%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)-3.59%
EPS NY rev (1m)0%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-1.83%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 26.69
Fwd PE 21.15
P/S 6.85
P/FCF 21.76
P/OCF 19.83
P/B 8.13
P/tB 91.78
EV/EBITDA 37.25
EPS(TTM)7.49
EY3.75%
EPS(NY)9.45
Fwd EY4.73%
FCF(TTM)9.19
FCFY4.6%
OCF(TTM)10.08
OCFY5.04%
SpS29.19
BVpS24.58
TBVpS2.18
PEG (NY)0.89
PEG (5Y)3.9
Graham Number64.37
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 5.64
F-Score6
WACC9.31%
ROIC/WACC0.91
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 Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y11.31%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%
Revenue Next Year12.36%
Revenue Next 2Y7.89%
Revenue Next 3Y6.91%
Revenue Next 5Y9%
EBIT growth 1Y-35.41%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year40.9%
EBIT Next 3Y15.68%
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 FAQ

What is the fundamental rating for EA stock?

ChartMill assigns a fundamental rating of 7 / 10 to EA.


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

ChartMill assigns a valuation rating of 6 / 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 26.69 and the Price/Book (PB) ratio is 8.13.


How financially healthy is ELECTRONIC ARTS INC?

The financial health rating of ELECTRONIC ARTS INC (EA) is 7 / 10.