ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe - FRA:ERT - US2855121099 - Common Stock
173.56 EUR
+0.36 (+0.21%)
Overall ERT gets a fundamental rating of 5 out of 10. We evaluated ERT against 43 industry peers in the Entertainment industry. ERT scores excellent on profitability, but there are some minor concerns on its financial health. ERT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ERT had positive earnings in the past year.
In the past year ERT had a positive cash flow from operations.
Each year in the past 5 years ERT has been profitable.
ERT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERT has a Return On Assets of 8.91%. This is amongst the best in the industry. ERT outperforms 90.70% of its industry peers.
With a decent Return On Equity value of 17.13%, ERT is doing good in the industry, outperforming 79.07% of the companies in the same industry.
ERT has a better Return On Invested Capital (12.83%) than 88.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERT is in line with the industry average of 10.60%.
The 3 year average ROIC (12.06%) for ERT is below the current ROIC(12.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.13% | ||
| ROIC | 12.83% |
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
The Profit Margin of ERT (13.94%) is better than 86.05% of its industry peers.
In the last couple of years the Profit Margin of ERT has declined.
With an excellent Operating Margin value of 19.83%, ERT belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
In the last couple of years the Operating Margin of ERT has declined.
Looking at the Gross Margin, with a value of 79.14%, ERT is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
ERT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.83% | ||
| PM (TTM) | 13.94% | ||
| GM | 79.14% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERT is still creating some value.
ERT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ERT has been reduced compared to 5 years ago.
Compared to 1 year ago, ERT has a worse debt to assets ratio.
2.2 Solvency
ERT has an Altman-Z score of 7.09. This indicates that ERT is financially healthy and has little risk of bankruptcy at the moment.
ERT has a Altman-Z score of 7.09. This is amongst the best in the industry. ERT outperforms 90.70% of its industry peers.
ERT has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
ERT's Debt to FCF ratio of 1.08 is amongst the best of the industry. ERT outperforms 88.37% of its industry peers.
ERT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.24, ERT is doing good in the industry, outperforming 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 7.09 |
ROIC/WACC1.51
WACC8.48%
2.3 Liquidity
ERT has a Current Ratio of 0.84. This is a bad value and indicates that ERT is not financially healthy enough and could expect problems in meeting its short term obligations.
ERT has a Current ratio (0.84) which is in line with its industry peers.
ERT has a Quick Ratio of 0.84. This is a bad value and indicates that ERT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ERT (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
ERT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
Looking at the last year, ERT shows a decrease in Revenue. The Revenue has decreased by -1.31% in the last year.
Measured over the past years, ERT shows a small growth in Revenue. The Revenue has been growing by 6.15% on average per year.
EPS 1Y (TTM)-21.43%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-43.72%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
3.2 Future
Based on estimates for the next years, ERT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
Based on estimates for the next years, ERT will show a small growth in Revenue. The Revenue will grow by 5.24% on average per year.
EPS Next Y26.63%
EPS Next 2Y17.82%
EPS Next 3Y15.12%
EPS Next 5Y9.25%
Revenue Next Year10.48%
Revenue Next 2Y7.42%
Revenue Next 3Y6.28%
Revenue Next 5Y5.24%
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
Based on the Price/Earnings ratio of 36.46, the valuation of ERT can be described as expensive.
ERT's Price/Earnings ratio is a bit cheaper when compared to the industry. ERT is cheaper than 74.42% of the companies in the same industry.
ERT is valuated rather expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.53, which indicates a rather expensive current valuation of ERT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERT indicates a somewhat cheap valuation: ERT is cheaper than 69.77% of the companies listed in the same industry.
ERT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERT is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, ERT is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.57 | ||
| EV/EBITDA | 27.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ERT may justify a higher PE ratio.
A more expensive valuation may be justified as ERT's earnings are expected to grow with 15.12% in the coming years.
PEG (NY)1.37
PEG (5Y)5.33
EPS Next 2Y17.82%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, ERT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.32, ERT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, ERT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
18.91% of the earnings are spent on dividend by ERT. This is a low number and sustainable payout ratio.
DP18.91%
EPS Next 2Y17.82%
EPS Next 3Y15.12%
FRA:ERT (10/31/2025, 7:00:00 PM)
173.56
+0.36 (+0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners103.56%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap43.28B
Revenue(TTM)7.46B
Net Income(TTM)1.04B
Analysts71.43
Price Target168.73 (-2.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.66
Dividend Growth(5Y)N/A
DP18.91%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.17%
Min EPS beat(2)7.97%
Max EPS beat(2)122.37%
EPS beat(4)3
Avg EPS beat(4)30.78%
Min EPS beat(4)-10.5%
Max EPS beat(4)122.37%
EPS beat(8)5
Avg EPS beat(8)17.91%
EPS beat(12)8
Avg EPS beat(12)14.56%
EPS beat(16)10
Avg EPS beat(16)16.44%
Revenue beat(2)1
Avg Revenue beat(2)4.92%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)11.74%
Revenue beat(4)1
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-7.44%
Max Revenue beat(4)11.74%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)3
Avg Revenue beat(12)-3.38%
Revenue beat(16)5
Avg Revenue beat(16)-2.36%
PT rev (1m)10.74%
PT rev (3m)14.49%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-33.02%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 21.53 | ||
| P/S | 6.69 | ||
| P/FCF | 28.57 | ||
| P/OCF | 25.3 | ||
| P/B | 8.22 | ||
| P/tB | 118.48 | ||
| EV/EBITDA | 27.3 |
EPS(TTM)4.76
EY2.74%
EPS(NY)8.06
Fwd EY4.64%
FCF(TTM)6.07
FCFY3.5%
OCF(TTM)6.86
OCFY3.95%
SpS25.94
BVpS21.11
TBVpS1.46
PEG (NY)1.37
PEG (5Y)5.33
Graham Number47.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 17.13% | ||
| ROCE | 17.12% | ||
| ROIC | 12.83% | ||
| ROICexc | 15.81% | ||
| ROICexgc | 81.17% | ||
| OM | 19.83% | ||
| PM (TTM) | 13.94% | ||
| GM | 79.14% | ||
| FCFM | 23.41% |
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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 63.66% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.57% | ||
| Profit Quality | 167.95% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 7.09 |
F-Score7
WACC8.48%
ROIC/WACC1.51
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 Y26.63%
EPS Next 2Y17.82%
EPS Next 3Y15.12%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year10.48%
Revenue Next 2Y7.42%
Revenue Next 3Y6.28%
Revenue Next 5Y5.24%
EBIT growth 1Y0.61%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.3%
EBIT Next 3Y16.39%
EBIT Next 5Y12.34%
FCF growth 1Y-2.45%
FCF growth 3Y2.79%
FCF growth 5Y2.32%
OCF growth 1Y-0.55%
OCF growth 3Y3.06%
OCF growth 5Y2.96%
ELECTRONIC ARTS INC / ERT.DE FAQ
What is the ChartMill fundamental rating of ELECTRONIC ARTS INC (ERT.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ERT.DE.
What is the valuation status of ELECTRONIC ARTS INC (ERT.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to ELECTRONIC ARTS INC (ERT.DE). This can be considered as Overvalued.
What is the profitability of ERT stock?
ELECTRONIC ARTS INC (ERT.DE) has a profitability rating of 7 / 10.
How financially healthy is ELECTRONIC ARTS INC?
The financial health rating of ELECTRONIC ARTS INC (ERT.DE) is 6 / 10.
Can you provide the expected EPS growth for ERT stock?
The Earnings per Share (EPS) of ELECTRONIC ARTS INC (ERT.DE) is expected to grow by 26.63% in the next year.