ELECTRONIC ARTS INC (EA) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:EA • US2855121099

199.985 USD
+2.06 (+1.04%)
Last: Feb 6, 2026, 03:31 PM
Fundamental Rating

6

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 has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year EA was profitable.
  • In the past year EA had a positive cash flow from operations.
  • EA had positive earnings in each of the past 5 years.
  • 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's Return On Assets of 7.47% is amongst the best of the industry. EA outperforms 83.75% of its industry peers.
  • EA has a Return On Equity of 14.75%. This is amongst the best in the industry. EA outperforms 85.00% of its industry peers.
  • EA has a Return On Invested Capital of 10.85%. This is amongst the best in the industry. EA outperforms 88.75% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for EA is above the industry average of 8.74%.
Industry RankSector 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%
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 better Profit Margin (12.14%) than 86.25% of its industry peers.
  • In the last couple of years the Profit Margin of EA has declined.
  • The Operating Margin of EA (17.11%) is better than 90.00% of its industry peers.
  • EA's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 78.79%, EA belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
  • EA's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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.
  • The number of shares outstanding for EA has been reduced compared to 1 year ago.
  • Compared to 5 years ago, EA has less shares outstanding
  • 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 6.71 indicates that EA is not in any danger for bankruptcy at the moment.
  • EA has a Altman-Z score of 6.71. This is amongst the best in the industry. EA outperforms 93.75% of its industry peers.
  • The Debt to FCF ratio of EA is 1.14, which is an excellent value as it means it would take EA, only 1.14 years of fcf income to pay off 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.
  • A Debt/Equity ratio of 0.25 indicates that EA is not too dependend on debt financing.
  • EA has a Debt to Equity ratio of 0.25. This is comparable to the rest of the industry: EA outperforms 56.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.14
Altman-Z 6.71
ROIC/WACC1.12
WACC9.65%
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 0.84. This is a bad value and indicates that EA is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of EA (0.84) is worse than 63.75% of its industry peers.
  • A Quick Ratio of 0.84 indicates that EA may have some problems paying its short term obligations.
  • With a Quick 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.
  • The current and quick ratio evaluation for EA is rather negative, while it does have 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 0.84
Quick Ratio 0.84
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

4

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.
  • The Revenue has decreased by -1.31% in the past 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)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%37.52%

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 Y29.87%
EPS Next 2Y18.68%
EPS Next 3Y15.23%
EPS Next 5Y9.25%
Revenue Next Year12.36%
Revenue Next 2Y7.89%
Revenue Next 3Y6.91%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same 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 2 4 6 8 10

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 26.70, EA can be considered very expensive at the moment.
  • 78.75% 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 27.67, which is the current average of the S&P500 Index.
  • EA is valuated rather expensively with a Price/Forward Earnings ratio of 21.16.
  • EA's Price/Forward Earnings ratio is rather cheap when compared to the industry. EA is cheaper than 81.25% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. EA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 26.7
Fwd PE 21.16
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 is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, EA is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 30.26
EV/EBITDA 32.02
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.
  • A more expensive valuation may be justified as EA's earnings are expected to grow with 15.23% in the coming years.
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.
  • EA's Dividend Yield is rather good when compared to the industry average which is at 7.60. EA pays more dividend than 81.25% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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

  • 21.92% of the earnings are spent on dividend by EA. This is a low number and sustainable payout ratio.
DP21.92%
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

More info and screens

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ELECTRONIC ARTS INC

NASDAQ:EA (2/6/2026, 3:31:04 PM)

199.985

+2.06 (+1.04%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners100.77%
Inst Owner Change-0.39%
Ins Owners0.15%
Ins Owner Change-5.93%
Market Cap50.02B
Revenue(TTM)7.46B
Net Income(TTM)885.00M
Analysts67.65
Price Target197.97 (-1.01%)
Short Float %3.76%
Short Ratio4.78
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
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)0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.23%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.58%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)1.7%
Valuation
Industry RankSector Rank
PE 26.7
Fwd PE 21.16
P/S 6.86
P/FCF 30.26
P/OCF 26.72
P/B 8.34
P/tB 136.29
EV/EBITDA 32.02
EPS(TTM)7.49
EY3.75%
EPS(NY)9.45
Fwd EY4.73%
FCF(TTM)6.61
FCFY3.3%
OCF(TTM)7.48
OCFY3.74%
SpS29.14
BVpS23.99
TBVpS1.47
PEG (NY)0.89
PEG (5Y)3.9
Graham Number63.58
Profitability
Industry RankSector 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 RankSector 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 6.71
F-Score7
WACC9.65%
ROIC/WACC1.12
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 5Y9.25%
Revenue 1Y (TTM)-1.31%
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 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year40.9%
EBIT Next 3Y15.68%
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 26.7 and the Price/Book (PB) ratio is 8.34.


How financially healthy is ELECTRONIC ARTS INC?

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