ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe - FRA:ERT - US2855121099 - Common Stock
173.52 EUR
-0.04 (-0.02%)
Taking everything into account, ERT scores 5 out of 10 in our fundamental rating. ERT was compared to 43 industry peers in the Entertainment industry. ERT scores excellent on profitability, but 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.
In the past year ERT had a positive cash flow from operations.
ERT had positive earnings in each of the past 5 years.
Each year in the past 5 years ERT had a positive operating cash flow.
1.2 Ratios
ERT has a better Return On Assets (8.91%) than 90.70% of its industry peers.
ERT's Return On Equity of 17.13% is fine compared to the rest of the industry. ERT outperforms 79.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.83%, ERT belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
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 10.60%.
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
ERT has a better Profit Margin (13.94%) than 86.05% of its industry peers.
ERT's Profit Margin has declined in the last couple of years.
ERT's Operating Margin of 19.83% is amongst the best of the industry. ERT outperforms 93.02% of its industry peers.
ERT's Operating Margin has declined in the last couple of years.
The Gross Margin of ERT (79.14%) is better than 62.79% of its industry peers.
In the last couple of years the Gross Margin of ERT has remained more or less at the same level.
| 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
ERT 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 ERT has been reduced compared to 1 year ago.
ERT has less shares outstanding than it did 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's Altman-Z score of 7.09 is amongst the best of the industry. ERT outperforms 90.70% 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.
Looking at the Debt to FCF ratio, with a value of 1.08, ERT belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
ERT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
ERT's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. ERT outperforms 72.09% of its industry peers.
| 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.
The Current ratio of ERT (0.84) is comparable to the rest of the industry.
A Quick Ratio of 0.84 indicates that ERT may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, ERT perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for ERT have decreased strongly by -21.43% in the last year.
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.
The Revenue has been growing slightly by 6.15% on average over the past years.
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
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, 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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.45 indicates a quite expensive valuation of ERT.
74.42% of the companies in the same industry are more expensive than ERT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. ERT is valued slightly more expensive when compared to this.
ERT is valuated rather expensively with a Price/Forward Earnings ratio of 21.53.
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.
When comparing the Price/Forward Earnings ratio of ERT to the average of the S&P500 Index (22.53), we can say ERT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERT is valued a bit more expensive than 60.47% of the companies in the same industry.
ERT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERT is cheaper than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.57 | ||
| EV/EBITDA | 27.3 |
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 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
ERT has a yearly dividend return of 0.38%, which is pretty low.
ERT's Dividend Yield is a higher than the industry average which is at 2.32.
Compared to an average S&P500 Dividend Yield of 2.38, 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
ERT pays out 18.91% of its income as dividend. This is a sustainable payout ratio.
DP18.91%
EPS Next 2Y17.82%
EPS Next 3Y15.12%
FRA:ERT (11/3/2025, 7:00:00 PM)
173.52
-0.04 (-0.02%)
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 Cap43.27B
Revenue(TTM)7.46B
Net Income(TTM)1.04B
Analysts71.43
Price Target168.73 (-2.76%)
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 | 36.45 | ||
| Fwd PE | 21.53 | ||
| P/S | 6.69 | ||
| P/FCF | 28.57 | ||
| P/OCF | 25.3 | ||
| P/B | 8.22 | ||
| P/tB | 118.46 | ||
| EV/EBITDA | 27.3 |
EPS(TTM)4.76
EY2.74%
EPS(NY)8.06
Fwd EY4.65%
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 4 / 10 to ELECTRONIC ARTS INC (ERT.DE). This can be considered as Fairly Valued.
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.