GAMESTOP CORP-CLASS A (GME)

US36467W1099 - Common Stock

27.9  +0.08 (+0.29%)

After market: 27.8 -0.1 (-0.36%)

Fundamental Rating

3

GME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 122 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.



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1

1. Profitability

1.1 Basic Checks

GME had positive earnings in the past year.
In the past year GME has reported a negative cash flow from operations.
GME had negative earnings in 4 of the past 5 years.
In multiple years GME reported negative operating cash flow during the last 5 years.

1.2 Ratios

GME has a Return On Assets (0.77%) which is comparable to the rest of the industry.
GME has a Return On Equity of 0.97%. This is comparable to the rest of the industry: GME outperforms 55.74% of its industry peers.
Industry RankSector 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

GME has a Profit Margin of 0.93%. This is comparable to the rest of the industry: GME outperforms 53.28% of its industry peers.
GME's Gross Margin of 26.24% is on the low side compared to the rest of the industry. GME is outperformed by 72.95% of its industry peers.
GME's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

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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.
The number of shares outstanding for GME has been increased compared to 1 year ago.
GME has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GME has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 8.12 indicates that GME is not in any danger for bankruptcy at the moment.
GME has a better Altman-Z score (8.12) than 96.72% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, GME is in the better half of the industry, outperforming 76.23% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 8.12
ROIC/WACCN/A
WACC10.07%

2.3 Liquidity

A Current Ratio of 6.23 indicates that GME has no problem at all paying its short term obligations.
The Current ratio of GME (6.23) is better than 98.36% 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.
Looking at the Quick ratio, with a value of 5.52, GME belongs to the top of the industry, outperforming 99.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 6.23
Quick Ratio 5.52

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1

3. Growth

3.1 Past

GME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 134.38%, which is quite impressive.
Measured over the past years, GME shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.58% on average per year.
Looking at the last year, GME shows a very negative growth in Revenue. The Revenue has decreased by -21.70% 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)134.38%
EPS 3YN/A
EPS 5Y-40.58%
EPS Q2Q%133.33%
Revenue 1Y (TTM)-21.7%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Sales Q2Q%-31.41%

3.2 Future

Based on estimates for the next years, GME will show a very negative growth in Earnings Per Share. The EPS will decrease by -41.33% on average per year.
The Revenue is expected to decrease by -14.54% on average over the next years. This is quite bad
EPS Next Y-160.6%
EPS Next 2Y-48.39%
EPS Next 3Y-41.33%
EPS Next 5YN/A
Revenue Next Year-26.43%
Revenue Next 2Y-17%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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0

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 253.64, GME can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GME is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.29. GME is valued rather expensively when compared to this.
GME is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 253.64
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 68.03% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 306.14

4.3 Compensation for Growth

A cheap valuation may be justified as GME's earnings are expected to decrease with -41.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-48.39%
EPS Next 3Y-41.33%

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0

5. Dividend

5.1 Amount

No dividends for GME!.
Industry RankSector Rank
Dividend Yield N/A

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GAMESTOP CORP-CLASS A

NYSE:GME (11/22/2024, 8:04:00 PM)

After market: 27.8 -0.1 (-0.36%)

27.9

+0.08 (+0.29%)

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 Cap12.46B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 253.64
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 RankSector 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 RankSector 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)134.38%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-160.6%
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