GAMESTOP CORP-CLASS A (GME)
US36467W1099 - Common Stock
GME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. While GME has a great health rating, there are worries on its profitability. GME has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GME was profitable.
GME had a negative operating cash flow in the past year.
GME had negative earnings in 4 of the past 5 years.
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 of 0.77%. This is comparable to the rest of the industry: GME outperforms 51.64% of its industry peers.
GME's Return On Equity of 0.97% is in line compared to the rest of the industry. GME outperforms 56.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 0.97% | ||
| 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
The Profit Margin of GME (0.93%) is comparable to the rest of the industry.
The Gross Margin of GME (26.24%) is worse than 73.77% of its industry peers.
GME's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.93% | ||
| GM | 26.24% |
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.
GME has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GME has been reduced compared to 5 years ago.
The debt/assets ratio for GME has been reduced compared to a year ago.
2.2 Solvency
GME has an Altman-Z score of 5.20. 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 5.20, GME belongs to the top of the industry, outperforming 87.70% of the companies in the same industry.
GME has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, GME is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.2 |
ROIC/WACCN/A
WACC8.66%
2.3 Liquidity
GME has a Current Ratio of 6.23. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GME (6.23) is better than 99.18% of its industry peers.
GME has a Quick Ratio of 5.52. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME has a better Quick ratio (5.52) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.23 | ||
| Quick Ratio | 5.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.90% over the past year.
GME shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.58% yearly.
GME shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.70%.
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 Q2Q%482.2%
Revenue 1Y (TTM)-21.7%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Sales Q2Q%-31.41%
3.2 Future
The Earnings Per Share is expected to decrease by -87.48% on average over the next years. This is quite bad
The Revenue is expected to decrease by -14.01% on average over the next years. This is quite bad
EPS Next Y-302%
EPS Next 2Y-87.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.08%
Revenue Next 2Y-14.01%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 437.00, which means the current valuation is very expensive for GME.
GME's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GME to the average of the S&P500 Index (30.59), we can say GME is valued expensively.
GME is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 437 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GME is valued a bit more expensive than the industry average as 69.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 98.53 |
4.3 Compensation for Growth
A cheap valuation may be justified as GME's earnings are expected to decrease with -87.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-87.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GAMESTOP CORP-CLASS A
NYSE:GME (9/20/2024, 6:38:20 PM)
After market: 21.8194 -0.03 (-0.14%)21.85
+2.34 (+11.99%)
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 Cap7.67B
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 | 437 | ||
| Fwd PE | N/A | ||
| 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 | 0.77% | ||
| ROE | 0.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 0.93% | ||
| GM | 26.24% | ||
| 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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.23 | ||
| Quick Ratio | 5.52 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-302%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.7%
Revenue growth 3Y1.18%
Revenue growth 5Y
Sales 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