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GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis

NYSE:GME - New York Stock Exchange, Inc. - US36467W1099 - Common Stock - Currency: USD

26.42  -0.62 (-2.29%)

After market: 26.3701 -0.05 (-0.19%)

Fundamental Rating

3

Taking everything into account, GME scores 3 out of 10 in our fundamental rating. GME was compared to 120 industry peers in the Specialty Retail industry. While GME has a great health rating, there are worries on its profitability. GME does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

GME had positive earnings in the past year.
GME had a negative operating cash flow in the past year.
In the past 5 years GME reported 4 times negative net income.
In multiple years GME reported negative operating cash flow during the last 5 years.
GME Yearly Net Income VS EBIT VS OCF VS FCFGME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M -600M

1.2 Ratios

With a Return On Assets value of 1.01%, GME perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.31%, GME is in line with its industry, outperforming 53.85% of the companies in the same industry.
Industry RankSector Rank
ROA 1.01%
ROE 1.31%
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
GME Yearly ROA, ROE, ROICGME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

Looking at the Profit Margin, with a value of 1.45%, GME is in line with its industry, outperforming 53.85% of the companies in the same industry.
With a Gross Margin value of 26.99%, GME is not doing good in the industry: 72.65% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of GME has declined.
Industry RankSector Rank
OM N/A
PM (TTM) 1.45%
GM 26.99%
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%
GME Yearly Profit, Operating, Gross MarginsGME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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7

2. Health

2.1 Basic Checks

GME does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GME has more shares outstanding
GME has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GME has an improved debt to assets ratio.
GME Yearly Shares OutstandingGME Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
GME Yearly Total Debt VS Total AssetsGME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 6.55 indicates that GME is not in any danger for bankruptcy at the moment.
GME has a Altman-Z score of 6.55. This is amongst the best in the industry. GME outperforms 94.87% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GME is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, GME is doing good in the industry, outperforming 74.36% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 6.55
ROIC/WACCN/A
WACC10.34%
GME Yearly LT Debt VS Equity VS FCFGME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 5.11 indicates that GME has no problem at all paying its short term obligations.
The Current ratio of GME (5.11) is better than 98.29% of its industry peers.
GME has a Quick Ratio of 4.36. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME's Quick ratio of 4.36 is amongst the best of the industry. GME outperforms 99.15% of its industry peers.
Industry RankSector Rank
Current Ratio 5.11
Quick Ratio 4.36
GME Yearly Current Assets VS Current LiabilitesGME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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3

3. Growth

3.1 Past

GME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1800.00%, which is quite impressive.
GME shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.58% yearly.
The Revenue for GME has decreased by -24.04% 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)1800%
EPS 3YN/A
EPS 5Y-40.58%
EPS Q2Q%491.53%
Revenue 1Y (TTM)-24.04%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Sales Q2Q%-20.22%

3.2 Future

The Earnings Per Share is expected to grow by 37.96% on average over the next years. This is a very strong growth
Based on estimates for the next years, GME will show a very negative growth in Revenue. The Revenue will decrease by -14.54% on average per year.
EPS Next Y41.4%
EPS Next 2Y-41.42%
EPS Next 3Y37.96%
EPS Next 5YN/A
Revenue Next Year-27.33%
Revenue Next 2Y-17.65%
Revenue Next 3Y-14.54%
Revenue Next 5YN/A

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 decreasing: in the next years the growth will be less than in the last years.
GME Yearly Revenue VS EstimatesGME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
GME Yearly EPS VS EstimatesGME Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 -1

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 155.41 indicates a quite expensive valuation of GME.
GME's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. GME is valued rather expensively when compared to this.
Industry RankSector Rank
PE 155.41
Fwd PE N/A
GME Price Earnings VS Forward Price EarningsGME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

70.94% of the companies in the same industry are cheaper than GME, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 528.58
GME Per share dataGME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GME does not grow enough to justify the current Price/Earnings ratio.
GME's earnings are expected to grow with 37.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.75
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y37.96%

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0

5. Dividend

5.1 Amount

GME does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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GAMESTOP CORP-CLASS A

NYSE:GME (2/21/2025, 8:24:01 PM)

After market: 26.3701 -0.05 (-0.19%)

26.42

-0.62 (-2.29%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-10 2024-12-10/amc
Earnings (Next)06-09 2025-06-09/amc
Inst Owners22.18%
Inst Owner Change14.76%
Ins Owners0.18%
Ins Owner Change-0.29%
Market Cap11.80B
Analysts40
Price Target10.2 (-61.39%)
Short Float %7.42%
Short Ratio3.26
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)152.6%
Min EPS beat(2)111.65%
Max EPS beat(2)193.55%
EPS beat(4)2
Avg EPS beat(4)61.76%
Min EPS beat(4)-32.01%
Max EPS beat(4)193.55%
EPS beat(8)5
Avg EPS beat(8)78.66%
EPS beat(12)6
Avg EPS beat(12)22.06%
EPS beat(16)7
Avg EPS beat(16)8.13%
Revenue beat(2)0
Avg Revenue beat(2)-7.9%
Min Revenue beat(2)-11.75%
Max Revenue beat(2)-4.05%
Revenue beat(4)0
Avg Revenue beat(4)-10.35%
Min Revenue beat(4)-13.35%
Max Revenue beat(4)-4.05%
Revenue beat(8)2
Avg Revenue beat(8)-7.36%
Revenue beat(12)4
Avg Revenue beat(12)-6.57%
Revenue beat(16)7
Avg Revenue beat(16)-3.92%
PT rev (1m)26.98%
PT rev (3m)26.98%
EPS NQ rev (1m)-5.88%
EPS NQ rev (3m)-38.46%
EPS NY rev (1m)0%
EPS NY rev (3m)333.33%
Revenue NQ rev (1m)-1.45%
Revenue NQ rev (3m)-5.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.22%
Valuation
Industry RankSector Rank
PE 155.41
Fwd PE N/A
P/S 2.72
P/FCF N/A
P/OCF N/A
P/B 2.46
P/tB 2.46
EV/EBITDA 528.58
EPS(TTM)0.17
EY0.64%
EPS(NY)0
Fwd EYN/A
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)-0.06
OCFYN/A
SpS9.7
BVpS10.75
TBVpS10.75
PEG (NY)3.75
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.01%
ROE 1.31%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 1.45%
GM 26.99%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0.68
Cap/Depr 39.42%
Cap/Sales 0.47%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.11
Quick Ratio 4.36
Altman-Z 6.55
F-Score5
WACC10.34%
ROIC/WACCN/A
Cap/Depr(3y)77.67%
Cap/Depr(5y)77.79%
Cap/Sales(3y)0.88%
Cap/Sales(5y)1.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1800%
EPS 3YN/A
EPS 5Y-40.58%
EPS Q2Q%491.53%
EPS Next Y41.4%
EPS Next 2Y-41.42%
EPS Next 3Y37.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.04%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Sales Q2Q%-20.22%
Revenue Next Year-27.33%
Revenue Next 2Y-17.65%
Revenue Next 3Y-14.54%
Revenue Next 5YN/A
EBIT growth 1Y38.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year134.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y88.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y91.89%
OCF growth 3YN/A
OCF growth 5YN/A