Logo image of EA

ELECTRONIC ARTS INC (EA) Stock Fundamental Analysis

NASDAQ:EA - Nasdaq - US2855121099 - Common Stock - Currency: USD

157.845  -1.22 (-0.76%)

Fundamental Rating

6

EA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 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 valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

With an excellent Return On Assets value of 9.06%, EA belongs to the best of the industry, outperforming 90.28% of the companies in the same industry.
EA's Return On Equity of 17.55% is amongst the best of the industry. EA outperforms 86.11% of its industry peers.
EA has a Return On Invested Capital of 13.27%. This is amongst the best in the industry. EA outperforms 91.67% of its industry peers.
EA had an Average Return On Invested Capital over the past 3 years of 12.06%. This is significantly below the industry average of 22.90%.
The last Return On Invested Capital (13.27%) for EA is above the 3 year average (12.06%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.06%
ROE 17.55%
ROIC 13.27%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

EA has a Profit Margin of 15.02%. This is amongst the best in the industry. EA outperforms 90.28% of its industry peers.
In the last couple of years the Profit Margin of EA has declined.
Looking at the Operating Margin, with a value of 21.13%, EA belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
EA's Operating Margin has declined in the last couple of years.
EA has a better Gross Margin (79.32%) than 91.67% of its industry peers.
EA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.13%
PM (TTM) 15.02%
GM 79.32%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EA is still creating some value.
Compared to 1 year ago, EA has less shares outstanding
EA has less shares outstanding than it did 5 years ago.
EA has a worse debt/assets ratio than last year.
EA Yearly Shares OutstandingEA Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 5.74 indicates that EA is not in any danger for bankruptcy at the moment.
EA has a Altman-Z score of 5.74. This is amongst the best in the industry. EA outperforms 84.72% of its industry peers.
The Debt to FCF ratio of EA is 1.01, which is an excellent value as it means it would take EA, only 1.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.01, EA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
EA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
EA has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.01
Altman-Z 5.74
ROIC/WACC1.54
WACC8.63%
EA Yearly LT Debt VS Equity VS FCFEA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

EA has a Current Ratio of 0.95. 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's Current ratio of 0.95 is in line compared to the rest of the industry. EA outperforms 50.00% of its industry peers.
EA has a Quick Ratio of 0.95. 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 Quick ratio, with a value of 0.95, EA is in line with its industry, outperforming 52.78% of the companies in the same industry.
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 0.95
Quick Ratio 0.95
EA Yearly Current Assets VS Current LiabilitesEA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

3

3. Growth

3.1 Past

The earnings per share for EA have decreased by -3.17% in the last year.
EA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
EA shows a decrease in Revenue. In the last year, the revenue decreased by -1.31%.
EA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.15% yearly.
EPS 1Y (TTM)-3.17%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-11.68%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%7.98%

3.2 Future

The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.10% on average over the next years.
EPS Next Y25.31%
EPS Next 2Y17.6%
EPS Next 3Y14.98%
EPS Next 5Y9.25%
Revenue Next Year9.67%
Revenue Next 2Y7.61%
Revenue Next 3Y6.52%
Revenue Next 5Y4.1%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
EA Yearly Revenue VS EstimatesEA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
EA Yearly EPS VS EstimatesEA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.52, which indicates a rather expensive current valuation of EA.
Based on the Price/Earnings ratio, EA is valued cheaper than 81.94% of the companies in the same industry.
EA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
EA is valuated rather expensively with a Price/Forward Earnings ratio of 18.77.
83.33% of the companies in the same industry are more expensive than EA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.70. EA is around the same levels.
Industry RankSector Rank
PE 23.52
Fwd PE 18.77
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EA indicates a somewhat cheap valuation: EA is cheaper than 63.89% of the companies listed in the same industry.
EA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EA is cheaper than 76.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.3
EV/EBITDA 20.39
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.
The excellent profitability rating of EA may justify a higher PE ratio.
A more expensive valuation may be justified as EA's earnings are expected to grow with 14.98% in the coming years.
PEG (NY)0.93
PEG (5Y)3.44
EPS Next 2Y17.6%
EPS Next 3Y14.98%

4

5. Dividend

5.1 Amount

EA has a yearly dividend return of 0.48%, which is pretty low.
EA's Dividend Yield is rather good when compared to the industry average which is at 6.63. EA pays more dividend than 80.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, EA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.48%

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 17.75% of its income as dividend. This is a sustainable payout ratio.
DP17.75%
EPS Next 2Y17.6%
EPS Next 3Y14.98%
EA Yearly Income VS Free CF VS DividendEA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

ELECTRONIC ARTS INC

NASDAQ:EA (7/2/2025, 9:35:01 AM)

157.845

-1.22 (-0.76%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners102.66%
Inst Owner Change-1.97%
Ins Owners0.2%
Ins Owner Change1.53%
Market Cap39.58B
Analysts75.26
Price Target171.48 (8.64%)
Short Float %4.19%
Short Ratio3.36
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
Yearly Dividend0.77
Dividend Growth(5Y)N/A
DP17.75%
Div Incr Years0
Div Non Decr Years4
Ex-Date05-28 2025-05-28 (0.19)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-10.5%
Max EPS beat(2)7.97%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-10.5%
Max EPS beat(4)21.09%
EPS beat(8)5
Avg EPS beat(8)3.61%
EPS beat(12)8
Avg EPS beat(12)9.46%
EPS beat(16)10
Avg EPS beat(16)9.74%
Revenue beat(2)1
Avg Revenue beat(2)2.15%
Min Revenue beat(2)-7.44%
Max Revenue beat(2)11.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.19%
Revenue beat(12)4
Avg Revenue beat(12)0.15%
Revenue beat(16)6
Avg Revenue beat(16)-0.9%
PT rev (1m)10.91%
PT rev (3m)16.5%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)-82.13%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)9.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)3.8%
Valuation
Industry RankSector Rank
PE 23.52
Fwd PE 18.77
P/S 5.3
P/FCF 21.3
P/OCF 19.04
P/B 6.2
P/tB 55.21
EV/EBITDA 20.39
EPS(TTM)6.71
EY4.25%
EPS(NY)8.41
Fwd EY5.33%
FCF(TTM)7.41
FCFY4.69%
OCF(TTM)8.29
OCFY5.25%
SpS29.76
BVpS25.47
TBVpS2.86
PEG (NY)0.93
PEG (5Y)3.44
Profitability
Industry RankSector Rank
ROA 9.06%
ROE 17.55%
ROCE 17.7%
ROIC 13.27%
ROICexc 17.75%
ROICexgc 119.2%
OM 21.13%
PM (TTM) 15.02%
GM 79.32%
FCFM 24.9%
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%
ROICexcg growth 3Y5.86%
ROICexcg 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 Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.01
Debt/EBITDA 0.77
Cap/Depr 62.08%
Cap/Sales 2.96%
Interest Coverage 28.16
Cash Conversion 107.55%
Profit Quality 165.75%
Current Ratio 0.95
Quick Ratio 0.95
Altman-Z 5.74
F-Score7
WACC8.63%
ROIC/WACC1.54
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)-3.17%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-11.68%
EPS Next Y25.31%
EPS Next 2Y17.6%
EPS Next 3Y14.98%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%7.98%
Revenue Next Year9.67%
Revenue Next 2Y7.61%
Revenue Next 3Y6.52%
Revenue Next 5Y4.1%
EBIT growth 1Y-4.42%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.25%
EBIT Next 3Y14.8%
EBIT Next 5Y11.53%
FCF growth 1Y-12.19%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-10.19%
OCF growth 3Y3.06%
OCF growth 5Y2.96%