204.1 USD
-0.12 (-0.06%)
204 USD
-0.1 (-0.05%)
Taking everything into account, EA scores 6 out of 10 in our fundamental rating. EA was compared to 80 industry peers in the Entertainment industry. EA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EA had positive earnings in the past year.
In the past year EA had a positive cash flow from operations.
Each year in the past 5 years EA has been profitable.
EA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EA has a Return On Assets of 7.47%. This is amongst the best in the industry. EA outperforms 83.75% of its industry peers.
Looking at the Return On Equity, with a value of 14.75%, EA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.85%, EA belongs to the best of the industry, outperforming 88.75% 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 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.
EA has a better Operating Margin (17.11%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of EA has declined.
EA has a better Gross Margin (78.79%) than 88.75% of its industry peers.
EA's Gross Margin has been stable in the last couple of years.
| 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
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
The number of shares outstanding for EA has been reduced compared to 5 years ago.
EA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.87 indicates that EA is not in any danger for bankruptcy at the moment.
EA's Altman-Z score of 6.87 is amongst the best of the industry. EA outperforms 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.
EA has a Debt to FCF ratio of 1.14. This is amongst the best in the industry. EA outperforms 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.
With a Debt to Equity ratio value of 0.25, EA perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.87 |
ROIC/WACC1.06
WACC10.23%
2.3 Liquidity
A Current Ratio of 0.84 indicates that EA may have some problems paying its short term obligations.
With a Current ratio value of 0.84, EA is not doing good in the industry: 63.75% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that EA may have some problems paying its short term obligations.
The Quick ratio of EA (0.84) is worse than 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%.
Measured over the past 5 years, EA shows a small growth in Earnings Per Share. The EPS has been growing by 6.84% on average per year.
The Revenue has decreased by -1.63% in the past year.
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.
Based on estimates for the next years, EA will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
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
With a Price/Earnings ratio of 37.11, EA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EA is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, EA is valued a bit more expensive.
With a Price/Forward Earnings ratio of 21.38, EA is valued on the expensive side.
81.25% of the companies in the same industry are more expensive than EA, based on the Price/Forward Earnings ratio.
EA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.11 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
EA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, EA is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.88 | ||
| EV/EBITDA | 33.01 |
4.3 Compensation for Growth
EA's 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.
EA's earnings are expected to grow with 15.83% in the coming years. This may justify a more expensive valuation.
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.
With a Dividend Yield of 0.37, EA pays less dividend than the S&P500 average, which is at 1.92.
| 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%
204.1
-0.12 (-0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners100.77%
Inst Owner Change-0.13%
Ins Owners0.15%
Ins Owner Change-5.76%
Market Cap51.05B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target197.97 (-3%)
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 | 37.11 | ||
| Fwd PE | 21.38 | ||
| P/S | 7 | ||
| P/FCF | 30.88 | ||
| P/OCF | 27.27 | ||
| P/B | 8.51 | ||
| P/tB | 139.09 | ||
| EV/EBITDA | 33.01 |
EPS(TTM)5.5
EY2.69%
EPS(NY)9.55
Fwd EY4.68%
FCF(TTM)6.61
FCFY3.24%
OCF(TTM)7.48
OCFY3.67%
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
WACC10.23%
ROIC/WACC1.06
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 37.11 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.