ELECTRONIC ARTS INC (ERT.DE) Fundamental Analysis & Valuation

FRA:ERT • US2855121099

Current stock price

173.58 EUR
-0.36 (-0.21%)
Last:

This ERT.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ERT.DE Profitability Analysis

1.1 Basic Checks

  • ERT had positive earnings in the past year.
  • In the past year ERT had a positive cash flow from operations.
  • ERT had positive earnings in each of the past 5 years.
  • In the past 5 years ERT always reported a positive cash flow from operatings.
ERT.DE Yearly Net Income VS EBIT VS OCF VS FCFERT.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • ERT's Return On Assets of 7.47% is amongst the best of the industry. ERT outperforms 84.09% of its industry peers.
  • ERT has a Return On Equity of 14.75%. This is in the better half of the industry: ERT outperforms 72.73% of its industry peers.
  • ERT has a better Return On Invested Capital (10.85%) than 81.82% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ERT is above the industry average of 9.50%.
Industry RankSector 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%
ERT.DE Yearly ROA, ROE, ROICERT.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • ERT has a better Profit Margin (12.14%) than 81.82% of its industry peers.
  • ERT's Profit Margin has declined in the last couple of years.
  • ERT has a Operating Margin of 17.11%. This is amongst the best in the industry. ERT outperforms 93.18% of its industry peers.
  • In the last couple of years the Operating Margin of ERT has declined.
  • ERT's Gross Margin of 78.79% is fine compared to the rest of the industry. ERT outperforms 68.18% 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 RankSector 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%
ERT.DE Yearly Profit, Operating, Gross MarginsERT.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. ERT.DE Health Analysis

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.
  • Compared to 5 years ago, ERT has less shares outstanding
  • The debt/assets ratio for ERT is higher compared to a year ago.
ERT.DE Yearly Shares OutstandingERT.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
ERT.DE Yearly Total Debt VS Total AssetsERT.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 6.86 indicates that ERT is not in any danger for bankruptcy at the moment.
  • ERT has a better Altman-Z score (6.86) than 88.64% of its industry peers.
  • ERT has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
  • ERT's Debt to FCF ratio of 1.14 is amongst the best of the industry. ERT outperforms 86.36% 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.
  • The Debt to Equity ratio of ERT (0.25) is better than 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.14
Altman-Z 6.86
ROIC/WACC1.04
WACC10.44%
ERT.DE Yearly LT Debt VS Equity VS FCFERT.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.84 indicates that ERT may have some problems paying its short term obligations.
  • With a Current ratio value of 0.84, ERT perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
  • 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 in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
ERT.DE Yearly Current Assets VS Current LiabilitesERT.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ERT.DE Growth Analysis

3.1 Past

  • The earnings per share for ERT have decreased strongly by -21.43% in the last year.
  • ERT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
  • ERT shows a decrease in Revenue. In the last year, the revenue decreased by -1.63%.
  • 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)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%

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.
  • The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
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.
ERT.DE Yearly Revenue VS EstimatesERT.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
ERT.DE Yearly EPS VS EstimatesERT.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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4

4. ERT.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 37.09, 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 79.55% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.71, ERT is valued a bit more expensive.
  • The Price/Forward Earnings ratio is 21.37, which indicates a rather expensive current valuation of ERT.
  • 65.91% of the companies in the same industry are more expensive than ERT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.83. ERT is around the same levels.
Industry RankSector Rank
PE 37.09
Fwd PE 21.37
ERT.DE Price Earnings VS Forward Price EarningsERT.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ERT.
  • ERT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.86
EV/EBITDA 32.99
ERT.DE Per share dataERT.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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 15.83% in the coming years.
PEG (NY)1.2
PEG (5Y)5.42
EPS Next 2Y19.27%
EPS Next 3Y15.83%

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3

5. ERT.DE Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.37%, ERT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.01, ERT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, ERT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.37%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
ERT.DE Yearly Dividends per shareERT.DE Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • 21.92% of the earnings are spent on dividend by ERT. This is a low number and sustainable payout ratio.
DP21.92%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
ERT.DE Yearly Income VS Free CF VS DividendERT.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ERT.DE Dividend Payout.ERT.DE Dividend Payout, showing the Payout Ratio.ERT.DE Dividend Payout.PayoutRetained Earnings

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ERT.DE Fundamentals: All Metrics, Ratios and Statistics

ELECTRONIC ARTS INC

FRA:ERT (12/22/2025, 7:00:00 PM)

173.58

-0.36 (-0.21%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-28
Earnings (Next)02-02
Inst Owners100.77%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap43.41B
Revenue(TTM)7.29B
Net Income(TTM)885.00M
Analysts67.65
Price Target169.75 (-2.21%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.37%
Yearly Dividend0.65
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)-0.54%
PT rev (3m)26.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.71%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.94%
Valuation
Industry RankSector Rank
PE 37.09
Fwd PE 21.37
P/S 7
P/FCF 30.86
P/OCF 27.25
P/B 8.5
P/tB 139
EV/EBITDA 32.99
EPS(TTM)4.68
EY2.7%
EPS(NY)8.12
Fwd EY4.68%
FCF(TTM)5.62
FCFY3.24%
OCF(TTM)6.37
OCFY3.67%
SpS24.8
BVpS20.42
TBVpS1.25
PEG (NY)1.2
PEG (5Y)5.42
Graham Number46.37
Profitability
Industry RankSector 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 RankSector 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 6.86
F-Score7
WACC10.44%
ROIC/WACC1.04
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 Y30.93%
EPS Next 2Y19.27%
EPS Next 3Y15.83%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y2.2%
Revenue growth 5Y6.15%
Sales Q2Q%-12.55%
Revenue Next Year12.89%
Revenue Next 2Y8.18%
Revenue Next 3Y7.2%
Revenue Next 5Y5.29%
EBIT growth 1Y-18.44%
EBIT growth 3Y10.34%
EBIT growth 5Y1.57%
EBIT Next Year41.75%
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 Fundamental Analysis 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 for ERT 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.


What are the PE and PB ratios of ELECTRONIC ARTS INC (ERT.DE) stock?

The Price/Earnings (PE) ratio for ELECTRONIC ARTS INC (ERT.DE) is 37.09 and the Price/Book (PB) ratio is 8.5.


What is the expected EPS growth for ELECTRONIC ARTS INC (ERT.DE) stock?

The Earnings per Share (EPS) of ELECTRONIC ARTS INC (ERT.DE) is expected to grow by 30.93% in the next year.