ELECTRONIC ARTS INC (ERT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ERT - US2855121099 - Common Stock
174.48 EUR
+0.4 (+0.23%)
Overall ERT gets a fundamental rating of 5 out of 10. We evaluated ERT against 44 industry peers in the Entertainment industry. ERT scores excellent on profitability, but there are some minor concerns on its financial health. ERT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ERT had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.47%, ERT belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
ERT's Return On Equity of 14.75% is fine compared to the rest of the industry. ERT outperforms 75.00% of its industry peers.
ERT has a better Return On Invested Capital (10.85%) than 84.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERT is in line with the industry average of 10.17%.
| Industry Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 12.14%, ERT is doing good in the industry, outperforming 79.55% of the companies in the same industry.
In the last couple of years the Profit Margin of ERT has declined.
ERT's Operating Margin of 17.11% is amongst the best of the industry. ERT outperforms 93.18% of its industry peers.
ERT's Operating Margin has declined in the last couple of years.
ERT's Gross Margin of 78.79% is fine compared to the rest of the industry. ERT outperforms 65.91% 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERT is creating some value.
ERT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERT has less shares outstanding
Compared to 1 year ago, ERT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.80 indicates that ERT is not in any danger for bankruptcy at the moment.
ERT has a better Altman-Z score (6.80) than 90.91% of its industry peers.
The Debt to FCF ratio of ERT is 1.14, which is an excellent value as it means it would take ERT, only 1.14 years of fcf income to pay off all of its debts.
ERT's Debt to FCF ratio of 1.14 is amongst the best of the industry. ERT outperforms 88.64% of its industry peers.
ERT has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, ERT is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.8 |
ROIC/WACC1.29
WACC8.39%
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 (0.84) which is in line with its industry peers.
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 45.45% of the companies in the same 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.
ERT shows a decrease in Revenue. In the last year, the revenue decreased by -1.63%.
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)-1.63%
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 5.29% on average per year.
EPS Next Y27.84%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
EPS Next 5Y9.25%
Revenue Next Year11.64%
Revenue Next 2Y7.51%
Revenue Next 3Y6.57%
Revenue Next 5Y5.29%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.66, ERT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ERT indicates a somewhat cheap valuation: ERT is cheaper than 72.73% of the companies listed in the same industry.
ERT is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.62, ERT is valued on the expensive side.
ERT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ERT is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.56, ERT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.66 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
ERT's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 30.53 | ||
| EV/EBITDA | 32.57 |
4.3 Compensation for Growth
ERT's 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.
ERT's earnings are expected to grow with 15.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)5.36
EPS Next 2Y17.94%
EPS Next 3Y15.69%
5. Dividend
5.1 Amount
ERT has a yearly dividend return of 0.38%, which is pretty low.
Compared to an average industry Dividend Yield of 2.36, ERT pays a bit more dividend than its industry peers.
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 | 0.38% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ERT pays out 21.92% of its income as dividend. This is a sustainable payout ratio.
DP21.92%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
FRA:ERT (12/1/2025, 11:58:02 AM)
174.48
+0.4 (+0.23%)
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 Cap43.64B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target170.67 (-2.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.66
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)-4.1%
Revenue beat(16)4
Avg Revenue beat(16)-2.8%
PT rev (1m)27.33%
PT rev (3m)13.57%
EPS NQ rev (1m)6.76%
EPS NQ rev (3m)9.21%
EPS NY rev (1m)0.96%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)6.13%
Revenue NQ rev (3m)7.37%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.66 | ||
| Fwd PE | 21.62 | ||
| P/S | 6.93 | ||
| P/FCF | 30.53 | ||
| P/OCF | 26.96 | ||
| P/B | 8.41 | ||
| P/tB | 137.53 | ||
| EV/EBITDA | 32.57 |
EPS(TTM)4.76
EY2.73%
EPS(NY)8.07
Fwd EY4.62%
FCF(TTM)5.71
FCFY3.28%
OCF(TTM)6.47
OCFY3.71%
SpS25.19
BVpS20.74
TBVpS1.27
PEG (NY)1.32
PEG (5Y)5.36
Graham Number47.13
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.8 |
F-Score7
WACC8.39%
ROIC/WACC1.29
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 Y27.84%
EPS Next 2Y17.94%
EPS Next 3Y15.69%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year11.64%
Revenue Next 2Y7.51%
Revenue Next 3Y6.57%
Revenue Next 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year36.3%
EBIT Next 3Y16.17%
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 / 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 27.84% in the next year.