GAMESTOP CORP-CLASS A (GME)
US36467W1099 - Common Stock
We assign a fundamental rating of 3 out of 10 to GME. GME was compared to 125 industry peers in the Specialty Retail industry. The financial health of GME is average, but there are quite some concerns on its profitability. GME is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GME was profitable.
GME had a negative operating cash flow in the past year.
In the past 5 years GME reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: GME reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 0.25%, GME perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
GME has a Return On Equity (0.50%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 0.5% | ||
| ROIC | N/A |
ROA(3y)-6.9%
ROA(5y)-9.22%
ROE(3y)-15.66%
ROE(5y)-34.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.13%, GME is in line with its industry, outperforming 50.79% of the companies in the same industry.
GME has a worse Gross Margin (24.54%) than 76.19% of its industry peers.
In the last couple of years the Gross Margin of GME has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.13% | ||
| GM | 24.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.27%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
GME does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for GME has been increased compared to 1 year ago.
Compared to 5 years ago, GME has less shares outstanding
The debt/assets ratio for GME has been reduced compared to a year ago.
2.2 Solvency
GME has an Altman-Z score of 5.24. This indicates that GME is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.24, GME belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that GME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, GME is in the better half of the industry, outperforming 76.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.24 |
ROIC/WACCN/A
WACC8.99%
2.3 Liquidity
A Current Ratio of 2.11 indicates that GME has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.11, GME belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
GME has a Quick Ratio of 1.44. This is a normal value and indicates that GME is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.44, GME belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.90% over the past year.
The earnings per share for GME have been decreasing by -40.58% on average. This is quite bad
The Revenue for GME has decreased by -11.04% in the past year. This is quite bad
The Revenue has been decreasing by -8.64% on average over the past years.
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y-40.58%
EPS growth Q2Q37.5%
Revenue 1Y (TTM)-11.04%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Revenue growth Q2Q-19.44%
3.2 Future
GME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.59% yearly.
GME is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.07% yearly.
EPS Next Y-79.8%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.29%
Revenue Next 2Y-9.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
GME is valuated quite expensively with a Price/Earnings ratio of 444.20.
Compared to the rest of the industry, the Price/Earnings ratio of GME is on the same level as its industry peers.
GME is valuated expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 2199.01, which means the current valuation is very expensive for GME.
GME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GME is more expensive than 63.49% of the companies in the same industry.
GME is valuated expensively when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 444.2 | ||
| Fwd PE | 2199.01 |
4.2 Price Multiples
67.46% of the companies in the same industry are cheaper than GME, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 201.97 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GME's earnings are expected to grow with 14.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
GME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GAMESTOP CORP-CLASS A
NYSE:GME (5/17/2024, 7:04:00 PM)
After market: 21.3 -0.91 (-4.1%)22.21
-5.46 (-19.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 444.2 | ||
| Fwd PE | 2199.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 0.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 0.13% | ||
| GM | 24.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-79.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.04%
Revenue growth 3Y1.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y