GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GME - US36467W1099 - Common Stock
23 USD
+0.05 (+0.22%)
23.0001 USD
0 (0%)
Overall GME gets a fundamental rating of 3 out of 10. We evaluated GME against 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of GME get a neutral evaluation. Nothing too spectacular is happening here. 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.
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's Return On Assets of 3.50% is fine compared to the rest of the industry. GME outperforms 62.30% of its industry peers.
The Return On Equity of GME (7.00%) is better than 63.11% of its industry peers.
GME has a Return On Invested Capital (1.12%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 7% | ||
| ROIC | 1.12% |
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
GME has a better Profit Margin (9.41%) than 87.70% of its industry peers.
The Operating Margin of GME (3.77%) is comparable to the rest of the industry.
GME's Gross Margin of 30.06% is on the low side compared to the rest of the industry. GME is outperformed by 66.39% of its industry peers.
In the last couple of years the Gross Margin of GME has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.06% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GME is destroying value.
The number of shares outstanding for GME has been increased compared to 1 year ago.
Compared to 5 years ago, GME has more shares outstanding
Compared to 1 year ago, GME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.63 indicates that GME is not a great score, but indicates only limited risk for bankruptcy at the moment.
GME's Altman-Z score of 2.63 is fine compared to the rest of the industry. GME outperforms 60.66% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that GME is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, GME perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.63 |
ROIC/WACC0.12
WACC9.39%
2.3 Liquidity
A Current Ratio of 11.37 indicates that GME has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 11.37, GME belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GME has a Quick Ratio of 10.79. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME's Quick ratio of 10.79 is amongst the best of the industry. GME outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.37 | ||
| Quick Ratio | 10.79 |
3. Growth
3.1 Past
GME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 609.09%, 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.
The Revenue for GME has decreased by -15.48% in the past year. This is quite bad
Measured over the past years, GME shows a decrease in Revenue. The Revenue has been decreasing by -9.98% on average per year.
EPS 1Y (TTM)609.09%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%2400%
Revenue 1Y (TTM)-15.48%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%21.78%
3.2 Future
GME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.42% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 29.49 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
A Price/Forward Earnings ratio of 28.11 indicates a quite expensive valuation of GME.
The rest of the industry has a similar Price/Forward Earnings ratio as GME.
The average S&P500 Price/Forward Earnings ratio is at 36.10. GME is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.49 | ||
| Fwd PE | 28.11 |
4.2 Price Multiples
GME's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GME is more expensive than 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 33.82 |
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)0.1
PEG (5Y)2.18
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 | N/A |
23
+0.05 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners39.68%
Inst Owner Change46.41%
Ins Owners8.57%
Ins Owner Change0.35%
Market Cap10.30B
Revenue(TTM)3.85B
Net Income(TTM)362.10M
Analysts40
Price Target13.77 (-40.13%)
Short Float %16.88%
Short Ratio9.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)189.48%
Min EPS beat(2)58.16%
Max EPS beat(2)320.79%
EPS beat(4)4
Avg EPS beat(4)210.95%
Min EPS beat(4)58.16%
Max EPS beat(4)320.79%
EPS beat(8)6
Avg EPS beat(8)124.66%
EPS beat(12)8
Avg EPS beat(12)105.72%
EPS beat(16)9
Avg EPS beat(16)46.81%
Revenue beat(2)1
Avg Revenue beat(2)6.53%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)16.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-14.03%
Max Revenue beat(4)16.92%
Revenue beat(8)1
Avg Revenue beat(8)-6.51%
Revenue beat(12)3
Avg Revenue beat(12)-6.09%
Revenue beat(16)6
Avg Revenue beat(16)-4.49%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.58%
EPS NY rev (1m)0%
EPS NY rev (3m)36.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)22.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)18.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.49 | ||
| Fwd PE | 28.11 | ||
| P/S | 2.68 | ||
| P/FCF | N/A | ||
| P/OCF | 21.12 | ||
| P/B | 1.99 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 33.82 |
EPS(TTM)0.78
EY3.39%
EPS(NY)0.82
Fwd EY3.56%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)1.09
OCFY4.73%
SpS8.59
BVpS11.56
TBVpS10.38
PEG (NY)0.1
PEG (5Y)2.18
Graham Number14.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 7% | ||
| ROCE | 1.53% | ||
| ROIC | 1.12% | ||
| ROICexc | 13.04% | ||
| ROICexgc | 36.97% | ||
| OM | 3.77% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.06% | ||
| FCFM | N/A |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 24.49 | ||
| Cap/Depr | 2077.02% | ||
| Cap/Sales | 13.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 287.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.37 | ||
| Quick Ratio | 10.79 | ||
| Altman-Z | 2.63 |
F-Score6
WACC9.39%
ROIC/WACC0.12
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)609.09%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%2400%
EPS Next Y299.96%
EPS Next 2Y80.9%
EPS Next 3Y5.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.48%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%21.78%
Revenue Next Year3.5%
Revenue Next 2Y3.17%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
EBIT growth 1Y631.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-110.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.59%
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 2 / 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 29.49 and the Price/Book (PB) ratio is 1.99.
How financially healthy is GAMESTOP CORP-CLASS A?
The financial health rating of GAMESTOP CORP-CLASS A (GME) is 5 / 10.