GAMESTOP CORP-CLASS A(NYSE:GME) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to GME. GME was compared to 119 industry peers in the Specialty Retail industry. No worries on liquidiy or solvency for GME as it has an excellent financial health rating, but there are worries on the profitability. GME does not seem to be growing, but still is valued expensively.

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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

GME has a Return On Assets (1.01%) which is in line with its industry peers.

GME has a Return On Equity of 1.31%. This is comparable to the rest of the industry: GME outperforms 54.31% of its industry peers.

		Industry Rank	Sector 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

1.3 Margins

Looking at the Profit Margin, with a value of 1.45%, GME is in line with its industry, outperforming 54.31% of the companies in the same industry.

With a Gross Margin value of 26.99%, GME is not doing good in the industry: 72.41% of the companies in the same industry are doing better.

In the last couple of years the Gross Margin of GME has declined.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

GME does not have a ROIC to compare to the WACC, probably because it is not profitable.

GME has more shares outstanding than it did 1 year ago.

Compared to 5 years ago, GME has less shares outstanding

GME has a better debt/assets ratio than last year.

2.2 Solvency

GME has an Altman-Z score of 6.63. This indicates that GME is financially healthy and has little risk of bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 6.63, GME belongs to the top of the industry, outperforming 94.83% of the companies in the same industry.

A Debt/Equity ratio of 0.00 indicates that GME is not too dependend on debt financing.

The Debt to Equity ratio of GME (0.00) is better than 75.86% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	6.63

ROIC/WACCN/A

WACC10.22%

2.3 Liquidity

GME has a Current Ratio of 5.11. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.

With an excellent Current ratio value of 5.11, GME belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.

A Quick Ratio of 4.36 indicates that GME has no problem at all paying its short term obligations.

GME has a better Quick ratio (4.36) than 99.14% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	5.11
Quick Ratio	4.36

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

Looking at the last year, GME shows a very negative growth in Revenue. The Revenue has decreased by -24.04% in the last year.

GME shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.64% yearly.

EPS 1Y (TTM)104.9%

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

GME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.96% yearly.

GME is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -14.54% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 557.82 indicates a quite expensive valuation of GME.

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 28.29, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	557.82
Fwd PE	N/A

4.2 Price Multiples

70.69% 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	542.21

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

GME's earnings are expected to grow with 37.96% in the coming years. This may justify a more expensive valuation.

PEG (NY)13.47

PEG (5Y)N/A

EPS Next 2Y-41.42%

EPS Next 3Y37.96%

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5. Dividend

5.1 Amount

GME does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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GAMESTOP CORP-CLASS A

NYSE:GME (1/22/2025, 10:33:09 AM)

27.8908

+0.42 (+1.53%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Discretionary Distribution & Retail

GICS IndustrySpecialty Retail

Earnings (Last)12-04 2024-12-04/amc

Earnings (Next)N/A N/A

Inst Owners22.18%

Inst Owner Change0%

Ins Owners0.18%

Ins Owner Change-0.29%

Market Cap12.46B

Analysts40

Price Target8.03 (-71.21%)

Short Float %7.66%

Short Ratio2.53

Dividend

		Industry Rank	Sector 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)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

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)0%

PT rev (3m)0%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-34.62%

EPS NY rev (1m)0%

EPS NY rev (3m)170%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-3.63%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-1.22%

Valuation

		Industry Rank	Sector Rank
PE	557.82
Fwd PE	N/A
P/S	2.88
P/FCF	N/A
P/OCF	N/A
P/B	2.59
P/tB	2.59
EV/EBITDA	542.21

EPS(TTM)0.05

EY0.18%

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)13.47

PEG (5Y)N/A

Profitability

		Industry Rank	Sector 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 Rank	Sector 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	6.63

F-Score5

WACC10.22%

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)104.9%

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

GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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