ELECTRONIC ARTS INC (EA) Fundamental Analysis & Valuation

NASDAQ:EA • US2855121099

Current stock price

199.24 USD
+0.16 (+0.08%)
At close:
199.23 USD
-0.01 (-0.01%)
After Hours:

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

  • 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.
  • 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

  • Looking at the Return On Assets, with a value of 5.12%, EA belongs to the top of the industry, outperforming 83.75% of the companies in the same industry.
  • EA has a Return On Equity of 11.05%. This is amongst the best in the industry. EA outperforms 83.75% of its industry peers.
  • EA has a better Return On Invested Capital (8.44%) than 87.50% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for EA is above the industry average of 7.34%.
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

  • EA's Profit Margin of 9.31% is fine compared to the rest of the industry. EA outperforms 80.00% of its industry peers.
  • EA's Profit Margin has declined in the last couple of years.
  • The Operating Margin of EA (13.63%) is better than 83.75% of its industry peers.
  • EA's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 78.26%, EA belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
  • 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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5

2. EA Health Analysis

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.
  • EA has less shares outstanding than it did 1 year ago.
  • 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.
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 5.61 indicates that EA is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.61, EA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • 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 86.25% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that EA is not too dependend on debt financing.
  • 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 5.61
ROIC/WACC0.83
WACC10.14%
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's Current ratio of 0.93 is on the low side compared to the rest of the industry. EA is outperformed by 61.25% of its industry peers.
  • 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 has a Quick ratio of 0.93. This is in the lower half of the industry: EA underperforms 61.25% 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

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5

3. EA Growth Analysis

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.
  • EA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.15% yearly.
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

  • Based on estimates for the next years, EA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
  • 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 Year12.98%
Revenue Next 2Y8.21%
Revenue Next 3Y6.13%
Revenue Next 5Y9%

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 accelerating: in the next years the growth will be better than in the last years.
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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6

4. EA Valuation Analysis

4.1 Price/Earnings Ratio

  • EA is valuated quite expensively with a Price/Earnings ratio of 26.60.
  • Based on the Price/Earnings ratio, EA is valued cheaper than 85.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, EA is valued at the same level.
  • EA is valuated rather expensively with a Price/Forward Earnings ratio of 21.08.
  • 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 23.84.
Industry RankSector Rank
PE 26.6
Fwd PE 21.08
EA Price Earnings VS Forward Price EarningsEA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 cheaper than 81.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.69
EV/EBITDA 37.03
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.
  • 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)3.89
EPS Next 2Y18.68%
EPS Next 3Y15.23%

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4

5. EA Dividend Analysis

5.1 Amount

  • EA has a yearly dividend return of 0.38%, which is pretty low.
  • EA's Dividend Yield is rather good when compared to the industry average which is at 7.43. EA pays more dividend than 82.50% of the companies in the same industry.
  • With a Dividend Yield of 0.38, EA pays less dividend than the S&P500 average, which is at 1.82.
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 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 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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EA Fundamentals: All Metrics, Ratios and Statistics

ELECTRONIC ARTS INC

NASDAQ:EA (3/13/2026, 8:22:14 PM)

After market: 199.23 -0.01 (-0.01%)

199.24

+0.16 (+0.08%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners100.77%
Inst Owner Change-3.48%
Ins Owners0.15%
Ins Owner Change-6.54%
Market Cap49.86B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts67.65
Price Target201.41 (1.09%)
Short Float %5.39%
Short Ratio5.53
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-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)1.74%
PT rev (3m)1.74%
EPS NQ rev (1m)-3.65%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 26.6
Fwd PE 21.08
P/S 6.82
P/FCF 21.69
P/OCF 19.77
P/B 8.1
P/tB 91.49
EV/EBITDA 37.03
EPS(TTM)7.49
EY3.76%
EPS(NY)9.45
Fwd EY4.74%
FCF(TTM)9.19
FCFY4.61%
OCF(TTM)10.08
OCFY5.06%
SpS29.19
BVpS24.58
TBVpS2.18
PEG (NY)0.89
PEG (5Y)3.89
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 5.61
F-Score6
WACC10.14%
ROIC/WACC0.83
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 Year12.98%
Revenue Next 2Y8.21%
Revenue Next 3Y6.13%
Revenue Next 5Y9%
EBIT growth 1Y-35.41%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year43.3%
EBIT Next 3Y16.63%
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 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 7 / 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 26.6 and the Price/Book (PB) ratio is 8.1.


How financially healthy is ELECTRONIC ARTS INC?

The financial health rating of ELECTRONIC ARTS INC (EA) is 5 / 10.