GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GME - US36467W1099 - Common Stock
23.03 USD
+0.75 (+3.37%)
22.92 USD
-0.11 (-0.48%)
Overall GME gets a fundamental rating of 3 out of 10. We evaluated GME against 122 industry peers in the Specialty Retail industry. GME has only an average score on both its financial health and profitability. GME has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
GME had positive earnings in the past year.
In the past year GME had a positive cash flow from operations.
In multiple years GME reported negative net income over the last 5 years.
In multiple years GME reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.00%, GME is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
GME has a better Return On Equity (7.95%) than 62.30% of its industry peers.
GME's Return On Invested Capital of 1.69% is in line compared to the rest of the industry. GME outperforms 40.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 7.95% | ||
| ROIC | 1.69% |
ROA(3y)-2.52%
ROA(5y)-5.44%
ROE(3y)-6.84%
ROE(5y)-18.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 11.08%, GME belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
Looking at the Operating Margin, with a value of 5.83%, GME is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
GME's Gross Margin of 30.79% is on the low side compared to the rest of the industry. GME is outperformed by 64.75% of its industry peers.
GME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.83% | ||
| PM (TTM) | 11.08% | ||
| GM | 30.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.12%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GME is destroying value.
GME has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GME has been increased compared to 5 years ago.
GME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 indicates that GME is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, GME is in line with its industry, outperforming 59.02% of the companies in the same industry.
The Debt to FCF ratio of GME is 69.15, which is on the high side as it means it would take GME, 69.15 years of fcf income to pay off all of its debts.
GME has a Debt to FCF ratio (69.15) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.78 indicates that GME is somewhat dependend on debt financing.
The Debt to Equity ratio of GME (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 69.15 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.18
WACC9.6%
2.3 Liquidity
GME has a Current Ratio of 10.39. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME has a better Current ratio (10.39) than 100.00% of its industry peers.
GME has a Quick Ratio of 9.77. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME has a Quick ratio of 9.77. This is amongst the best in the industry. GME outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.39 | ||
| Quick Ratio | 9.77 |
3. Growth
3.1 Past
GME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 464.71%, which is quite impressive.
GME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.54% yearly.
GME shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.13%.
The Revenue has been decreasing by -9.98% on average over the past years.
EPS 1Y (TTM)464.71%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%300%
Revenue 1Y (TTM)-12.13%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-4.57%
3.2 Future
Based on estimates for the next years, GME will show a small growth in Earnings Per Share. The EPS will grow by 5.42% on average per year.
The Revenue is expected to decrease by -14.63% on average over the next years. This is quite bad
EPS Next Y299.96%
EPS Next 2Y80.9%
EPS Next 3Y5.42%
EPS Next 5YN/A
Revenue Next Year3.5%
Revenue Next 2Y3.17%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.99, the valuation of GME can be described as rather expensive.
Based on the Price/Earnings ratio, GME is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
GME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.22.
Based on the Price/Forward Earnings ratio of 28.15, the valuation of GME can be described as expensive.
GME's Price/Forward Earnings ratio is in line with the industry average.
GME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 28.15 |
4.2 Price Multiples
GME's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GME is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 171.35 | ||
| EV/EBITDA | 19.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.08
PEG (5Y)1.77
EPS Next 2Y80.9%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
GME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
23.03
+0.75 (+3.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners39.68%
Inst Owner Change46.42%
Ins Owners8.57%
Ins Owner Change0.37%
Market Cap10.32B
Revenue(TTM)3.81B
Net Income(TTM)421.80M
Analysts40
Price Target13.77 (-40.21%)
Short Float %16.31%
Short Ratio9.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
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)38.49%
Min EPS beat(2)18.81%
Max EPS beat(2)58.16%
EPS beat(4)4
Avg EPS beat(4)167.26%
Min EPS beat(4)18.81%
Max EPS beat(4)320.79%
EPS beat(8)6
Avg EPS beat(8)114.51%
EPS beat(12)9
Avg EPS beat(12)108.2%
EPS beat(16)10
Avg EPS beat(16)58.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-17.67%
Max Revenue beat(2)16.92%
Revenue beat(4)1
Avg Revenue beat(4)-4.66%
Min Revenue beat(4)-17.67%
Max Revenue beat(4)16.92%
Revenue beat(8)1
Avg Revenue beat(8)-7.51%
Revenue beat(12)3
Avg Revenue beat(12)-6.46%
Revenue beat(16)5
Avg Revenue beat(16)-6.09%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.21%
EPS NY rev (1m)0%
EPS NY rev (3m)36.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 28.15 | ||
| P/S | 2.71 | ||
| P/FCF | 171.35 | ||
| P/OCF | 17.94 | ||
| P/B | 1.95 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 19.2 |
EPS(TTM)0.96
EY4.17%
EPS(NY)0.82
Fwd EY3.55%
FCF(TTM)0.13
FCFY0.58%
OCF(TTM)1.28
OCFY5.57%
SpS8.5
BVpS11.84
TBVpS10.68
PEG (NY)0.08
PEG (5Y)1.77
Graham Number15.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 7.95% | ||
| ROCE | 2.31% | ||
| ROIC | 1.69% | ||
| ROICexc | 20.66% | ||
| ROICexgc | 60.5% | ||
| OM | 5.83% | ||
| PM (TTM) | 11.08% | ||
| GM | 30.79% | ||
| FCFM | 1.58% |
ROA(3y)-2.52%
ROA(5y)-5.44%
ROE(3y)-6.84%
ROE(5y)-18.72%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y9.12%
GM growth 5Y-0.26%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 69.15 | ||
| Debt/EBITDA | 17.14 | ||
| Cap/Depr | 2463.16% | ||
| Cap/Sales | 13.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 236.82% | ||
| Profit Quality | 14.27% | ||
| Current Ratio | 10.39 | ||
| Quick Ratio | 9.77 | ||
| Altman-Z | 2.62 |
F-Score6
WACC9.6%
ROIC/WACC0.18
Cap/Depr(3y)64.7%
Cap/Depr(5y)69.75%
Cap/Sales(3y)0.68%
Cap/Sales(5y)0.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)464.71%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%300%
EPS Next Y299.96%
EPS Next 2Y80.9%
EPS Next 3Y5.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.13%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-4.57%
Revenue Next Year3.5%
Revenue Next 2Y3.17%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
EBIT growth 1Y693.32%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-43.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y295.19%
OCF growth 3YN/A
OCF growth 5YN/A
GAMESTOP CORP-CLASS A / GME FAQ
What is the ChartMill fundamental rating of GAMESTOP CORP-CLASS A (GME) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GME.
What is the valuation status for GME stock?
ChartMill assigns a valuation rating of 3 / 10 to GAMESTOP CORP-CLASS A (GME). This can be considered as Overvalued.
How profitable is GAMESTOP CORP-CLASS A (GME) stock?
GAMESTOP CORP-CLASS A (GME) has a profitability rating of 4 / 10.
What are the PE and PB ratios of GAMESTOP CORP-CLASS A (GME) stock?
The Price/Earnings (PE) ratio for GAMESTOP CORP-CLASS A (GME) is 23.99 and the Price/Book (PB) ratio is 1.95.
How financially healthy is GAMESTOP CORP-CLASS A?
The financial health rating of GAMESTOP CORP-CLASS A (GME) is 5 / 10.