GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
NYSE:GME - New York Stock Exchange, Inc. - US36467W1099 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GME. GME was compared to 121 industry peers in the Specialty Retail industry. While GME has a great health rating, there are worries on its profitability. While showing a medium growth rate, GME is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
GME had positive earnings in the past year.
GME had a positive operating cash flow in the past year.
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 2.23% is in line compared to the rest of the industry. GME outperforms 57.02% of its industry peers.
GME has a Return On Equity (2.66%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 2.66% | ||
| ROIC | 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
1.3 Margins
GME's Profit Margin of 3.43% is fine compared to the rest of the industry. GME outperforms 71.07% of its industry peers.
With a Gross Margin value of 29.14%, GME is not doing good in the industry: 67.77% of the companies in the same industry are doing better.
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 | N/A | ||
| PM (TTM) | 3.43% | ||
| GM | 29.14% |
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
GME does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GME has more shares outstanding
GME has more 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
GME has an Altman-Z score of 9.67. 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 9.67, GME belongs to the top of the industry, outperforming 98.35% of the companies in the same industry.
GME has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
GME's Debt to FCF ratio of 0.13 is amongst the best of the industry. GME outperforms 80.99% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that GME is not too dependend on debt financing.
GME has a Debt to Equity ratio of 0.00. This is in the better half of the industry: GME outperforms 71.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 9.67 |
ROIC/WACCN/A
WACC9.79%
2.3 Liquidity
GME has a Current Ratio of 8.05. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.05, GME belongs to the best of the industry, outperforming 99.17% of the companies in the same industry.
GME has a Quick Ratio of 7.33. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME has a Quick ratio of 7.33. This is amongst the best in the industry. GME outperforms 99.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.05 | ||
| Quick Ratio | 7.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 400.00% over the past year.
GME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.54% yearly.
Looking at the last year, GME shows a very negative growth in Revenue. The Revenue has decreased by -27.50% in the last year.
GME shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.98% yearly.
EPS 1Y (TTM)400%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%36.36%
Revenue 1Y (TTM)-27.5%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-28.49%
3.2 Future
The Earnings Per Share is expected to grow by 23.83% on average over the next years. This is a very strong growth
GME is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -14.63% yearly.
EPS Next Y83.82%
EPS Next 2Y20.6%
EPS Next 3Y23.83%
EPS Next 5YN/A
Revenue Next Year-11.43%
Revenue Next 2Y-11.71%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
GME is valuated quite expensively with a Price/Earnings ratio of 114.04.
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 26.60. GME is valued rather expensively when compared to this.
GME is valuated quite expensively with a Price/Forward Earnings ratio of 62.04.
GME's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GME is more expensive than 61.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GME to the average of the S&P500 Index (22.43), we can say GME is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.04 | ||
| Fwd PE | 62.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GME indicates a slightly more expensive valuation: GME is more expensive than 72.73% of the companies listed in the same industry.
GME's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.4 | ||
| EV/EBITDA | 356.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GME's earnings are expected to grow with 23.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)8.42
EPS Next 2Y20.6%
EPS Next 3Y23.83%
5. Dividend
5.1 Amount
GME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.51
+0.62 (+2.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.89%
Inst Owner Change6.86%
Ins Owners0.17%
Ins Owner Change1.09%
Market Cap12.75B
Analysts40
Price Target13.77 (-51.7%)
Short Float %11.92%
Short Ratio4.42
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)232.42%
Min EPS beat(2)193.55%
Max EPS beat(2)271.29%
EPS beat(4)3
Avg EPS beat(4)136.12%
Min EPS beat(4)-32.01%
Max EPS beat(4)271.29%
EPS beat(8)5
Avg EPS beat(8)85.22%
EPS beat(12)7
Avg EPS beat(12)71.32%
EPS beat(16)8
Avg EPS beat(16)25.22%
Revenue beat(2)0
Avg Revenue beat(2)-9.04%
Min Revenue beat(2)-14.03%
Max Revenue beat(2)-4.05%
Revenue beat(4)0
Avg Revenue beat(4)-10.52%
Min Revenue beat(4)-14.03%
Max Revenue beat(4)-4.05%
Revenue beat(8)1
Avg Revenue beat(8)-9.25%
Revenue beat(12)3
Avg Revenue beat(12)-7.8%
Revenue beat(16)7
Avg Revenue beat(16)-4.48%
PT rev (1m)0%
PT rev (3m)35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)214.29%
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.04 | ||
| Fwd PE | 62.04 | ||
| P/S | 3.34 | ||
| P/FCF | 98.4 | ||
| P/OCF | 87.53 | ||
| P/B | 2.59 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 356.09 |
EPS(TTM)0.25
EY0.88%
EPS(NY)0.46
Fwd EY1.61%
FCF(TTM)0.29
FCFY1.02%
OCF(TTM)0.33
OCFY1.14%
SpS8.55
BVpS11.02
TBVpS11.02
PEG (NY)1.36
PEG (5Y)8.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 2.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 3.43% | ||
| GM | 29.14% | ||
| FCFM | 3.39% |
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
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 3Y9.12%
GM growth 5Y-0.26%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 41.39% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 650.45% | ||
| Profit Quality | 98.78% | ||
| Current Ratio | 8.05 | ||
| Quick Ratio | 7.33 | ||
| Altman-Z | 9.67 |
F-Score7
WACC9.79%
ROIC/WACCN/A
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)400%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%36.36%
EPS Next Y83.82%
EPS Next 2Y20.6%
EPS Next 3Y23.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-27.5%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-28.49%
Revenue Next Year-11.43%
Revenue Next 2Y-11.71%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
EBIT growth 1Y44.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y154.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y171.53%
OCF growth 3YN/A
OCF growth 5YN/A