ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
FRA:ERT - US2855121099 - Common Stock
147.64 EUR
-0.44 (-0.3%)
Taking everything into account, ERT scores 5 out of 10 in our fundamental rating. ERT was compared to 42 industry peers in the Entertainment industry. While ERT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ERT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ERT was profitable.
ERT had a positive operating cash flow in the past year.
In the past 5 years ERT has always been profitable.
ERT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERT has a better Return On Assets (8.91%) than 90.48% of its industry peers.
ERT's Return On Equity of 17.13% is fine compared to the rest of the industry. ERT outperforms 78.57% of its industry peers.
The Return On Invested Capital of ERT (12.83%) is better than 83.33% of its industry peers.
ERT had an Average Return On Invested Capital over the past 3 years of 12.06%. This is in line with the industry average of 10.22%.
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
ERT has a better Profit Margin (13.94%) than 83.33% 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 90.48% of the companies in the same industry.
ERT's Operating Margin has declined in the last couple of years.
ERT has a better Gross Margin (79.14%) than 66.67% of its industry peers.
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.
The number of shares outstanding for ERT has been reduced compared to 1 year ago.
ERT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ERT is higher compared to a year ago.
2.2 Solvency
ERT has an Altman-Z score of 6.35. This indicates that ERT is financially healthy and has little risk of bankruptcy at the moment.
ERT's Altman-Z score of 6.35 is amongst the best of the industry. ERT outperforms 90.48% of its industry peers.
The Debt to FCF ratio of ERT is 1.08, which is an excellent value as it means it would take ERT, only 1.08 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.08, ERT belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that ERT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, ERT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.08 | ||
| Altman-Z | 6.35 |
ROIC/WACC1.51
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.84 indicates that ERT may have some problems paying its short term obligations.
ERT has a Current ratio of 0.84. This is comparable to the rest of the industry: ERT outperforms 47.62% of its industry peers.
A Quick Ratio of 0.84 indicates that ERT may have some problems paying its short term obligations.
ERT has a Quick ratio (0.84) which 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
The Earnings Per Share has been growing slightly by 2.06% over the past year.
ERT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
Looking at the last year, ERT shows a small growth in Revenue. The Revenue has grown by 2.41% in the last year.
The Revenue has been growing slightly by 6.15% on average over the past years.
EPS 1Y (TTM)2.06%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-51.92%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
3.2 Future
ERT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
ERT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y24.46%
EPS Next 2Y17.69%
EPS Next 3Y14.94%
EPS Next 5Y9.25%
Revenue Next Year10.29%
Revenue Next 2Y7.6%
Revenue Next 3Y6.31%
Revenue Next 5Y4.4%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.70, the valuation of ERT can be described as expensive.
76.19% of the companies in the same industry are more expensive than ERT, based on the Price/Earnings ratio.
ERT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 18.50 indicates a rather expensive valuation of ERT.
ERT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERT is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. ERT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.7 | ||
| Fwd PE | 18.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ERT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.59 | ||
| EV/EBITDA | 23.5 |
4.3 Compensation for Growth
ERT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ERT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ERT's earnings are expected to grow with 14.94% in the coming years.
PEG (NY)1.09
PEG (5Y)3.9
EPS Next 2Y17.69%
EPS Next 3Y14.94%
5. Dividend
5.1 Amount
ERT has a yearly dividend return of 0.44%, which is pretty low.
ERT's Dividend Yield is a higher than the industry average which is at 2.05.
Compared to an average S&P500 Dividend Yield of 2.32, ERT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ERT pays out 18.91% of its income as dividend. This is a sustainable payout ratio.
DP18.91%
EPS Next 2Y17.69%
EPS Next 3Y14.94%
FRA:ERT (9/3/2025, 7:00:00 PM)
147.64
-0.44 (-0.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners105.5%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap36.94B
Analysts75.5
Price Target150.28 (1.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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)1.97%
PT rev (3m)12.87%
EPS NQ rev (1m)-32.89%
EPS NQ rev (3m)-36.24%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)-3.15%
Revenue NQ rev (3m)-9.79%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.7 | ||
| Fwd PE | 18.5 | ||
| P/S | 5.76 | ||
| P/FCF | 24.59 | ||
| P/OCF | 21.77 | ||
| P/B | 7.07 | ||
| P/tB | 101.96 | ||
| EV/EBITDA | 23.5 |
EPS(TTM)5.53
EY3.75%
EPS(NY)7.98
Fwd EY5.4%
FCF(TTM)6.01
FCFY4.07%
OCF(TTM)6.78
OCFY4.59%
SpS25.65
BVpS20.87
TBVpS1.45
PEG (NY)1.09
PEG (5Y)3.9
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%
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 Turnover0.64
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 | 6.35 |
F-Score7
WACC8.49%
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)2.06%
EPS 3Y-1.54%
EPS 5Y6.84%
EPS Q2Q%-51.92%
EPS Next Y24.46%
EPS Next 2Y17.69%
EPS Next 3Y14.94%
EPS Next 5Y9.25%
Revenue 1Y (TTM)2.41%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%2.85%
Revenue Next Year10.29%
Revenue Next 2Y7.6%
Revenue Next 3Y6.31%
Revenue Next 5Y4.4%
EBIT growth 1Y0.61%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year35.92%
EBIT Next 3Y15.59%
EBIT Next 5Y11.34%
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%