ELECTRONIC ARTS INC (EA) Fundamental Analysis & Valuation

NASDAQ:EA • US2855121099

Current stock price

202.57 USD
+0.56 (+0.28%)
At close:
202.34 USD
-0.23 (-0.11%)
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.
  • In the past year EA had a positive cash flow from operations.
  • 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

  • The Return On Assets of EA (5.12%) is better than 83.54% of its industry peers.
  • EA has a better Return On Equity (11.05%) than 83.54% of its industry peers.
  • With an excellent Return On Invested Capital value of 8.44%, EA belongs to the best of the industry, outperforming 86.08% 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 7.48%.
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 has a Profit Margin of 9.31%. This is in the better half of the industry: EA outperforms 79.75% of its industry peers.
  • In the last couple of years the Profit Margin of EA has declined.
  • The Operating Margin of EA (13.63%) is better than 83.54% of its industry peers.
  • EA's Operating Margin has declined in the last couple of years.
  • EA's Gross Margin of 78.26% is amongst the best of the industry. EA outperforms 87.34% 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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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.
  • 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.
  • 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

  • EA has an Altman-Z score of 5.68. This indicates that EA is financially healthy and has little risk of bankruptcy at the moment.
  • EA has a Altman-Z score of 5.68. This is amongst the best in the industry. EA outperforms 93.67% 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 86.08% of its industry peers.
  • EA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.24, EA perfoms like the industry average, outperforming 56.96% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 0.82
Altman-Z 5.68
ROIC/WACC0.9
WACC9.36%
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.
  • With a Current ratio value of 0.93, EA perfoms like the industry average, outperforming 40.51% of the companies in the same 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 has a Quick ratio (0.93) which is in line with 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

  • 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.
  • Looking at the last year, EA shows a decrease in Revenue. The Revenue has decreased by -0.56% in the last year.
  • Measured over the past years, EA shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
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 Y33.84%
EPS Next 2Y19.1%
EPS Next 3Y15.35%
EPS Next 5Y11.31%
Revenue Next Year13.05%
Revenue Next 2Y8.46%
Revenue Next 3Y6.61%
Revenue Next 5Y7.91%

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

  • A Price/Earnings ratio of 27.05 indicates a quite expensive valuation of EA.
  • 83.54% of the companies in the same industry are more expensive than EA, based on the Price/Earnings ratio.
  • EA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.75, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.28 indicates a rather expensive valuation of EA.
  • Based on the Price/Forward Earnings ratio, EA is valued a bit cheaper than the industry average as 79.75% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.10. EA is around the same levels.
Industry RankSector Rank
PE 27.05
Fwd PE 21.28
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 is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EA indicates a rather cheap valuation: EA is cheaper than 81.01% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 22.05
EV/EBITDA 37.58
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.
  • The decent profitability rating of EA may justify a higher PE ratio.
  • EA's earnings are expected to grow with 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)3.95
EPS Next 2Y19.1%
EPS Next 3Y15.35%

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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 6.06. EA pays more dividend than 83.54% of the companies 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 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

  • 28.09% of the earnings are spent on dividend by EA. This is a low number and sustainable payout ratio.
DP28.09%
EPS Next 2Y19.1%
EPS Next 3Y15.35%
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 (3/30/2026, 7:12:43 PM)

After market: 202.34 -0.23 (-0.11%)

202.57

+0.56 (+0.28%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners95.54%
Inst Owner Change-3.48%
Ins Owners0.15%
Ins Owner Change-5.98%
Market Cap50.69B
Revenue(TTM)7.31B
Net Income(TTM)680.00M
Analysts69.09
Price Target202.93 (0.18%)
Short Float %4.89%
Short Ratio4.66
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)0.8%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)3.06%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 27.05
Fwd PE 21.28
P/S 6.94
P/FCF 22.05
P/OCF 20.1
P/B 8.24
P/tB 93.02
EV/EBITDA 37.58
EPS(TTM)7.49
EY3.7%
EPS(NY)9.52
Fwd EY4.7%
FCF(TTM)9.19
FCFY4.54%
OCF(TTM)10.08
OCFY4.98%
SpS29.19
BVpS24.58
TBVpS2.18
PEG (NY)0.8
PEG (5Y)3.95
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 5.68
F-Score6
WACC9.36%
ROIC/WACC0.9
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 Y33.84%
EPS Next 2Y19.1%
EPS Next 3Y15.35%
EPS Next 5Y11.31%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%
Revenue Next Year13.05%
Revenue Next 2Y8.46%
Revenue Next 3Y6.61%
Revenue Next 5Y7.91%
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 27.05 and the Price/Book (PB) ratio is 8.24.


How financially healthy is ELECTRONIC ARTS INC?

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