Taking everything into account, GME scores 3 out of 10 in our fundamental rating. GME was compared to 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

GME has a better Return On Assets (4.00%) than 64.75% of its industry peers.
GME has a Return On Equity of 7.95%. This is in the better half of the industry: GME outperforms 63.93% of its industry peers.
GME has a Return On Invested Capital (1.69%) which is in line with 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

GME's Profit Margin of 11.08% is amongst the best of the industry. GME outperforms 92.62% of its industry peers.
GME's Operating Margin of 5.83% is fine compared to the rest of the industry. GME outperforms 72.13% of its industry peers.
GME's Gross Margin of 30.79% is on the low side compared to the rest of the industry. GME is outperformed by 65.57% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

GME has an Altman-Z score of 2.61. This is not the best score and indicates that GME is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.61, GME perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
GME has a debt to FCF ratio of 69.15. This is a negative value and a sign of low solvency as GME would need 69.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 69.15, GME is in line with its industry, outperforming 40.98% of the companies in the same industry.
GME has a Debt/Equity ratio of 0.78. This is a neutral value indicating GME is somewhat dependend on debt financing.
GME has a Debt to Equity ratio (0.78) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.78
Debt/FCF	69.15
Altman-Z	2.61

ROIC/WACC0.17

WACC9.7%

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's Current ratio of 10.39 is amongst the best of the industry. GME outperforms 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's Quick ratio of 9.77 is amongst the best of the industry. GME outperforms 100.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	10.39
Quick Ratio	9.77

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 464.71% over the past year.
Measured over the past years, GME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.54% on average per year.
Looking at the last year, GME shows a very negative growth in Revenue. The Revenue has decreased by -12.13% in the last year.
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

The Earnings Per Share is expected to grow by 5.42% on average over the next years.
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 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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.01 indicates a quite expensive valuation of GME.
68.85% of the companies in the same industry are more expensive than GME, based on the Price/Earnings ratio.
GME is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.35, which means the current valuation is very expensive for GME.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GME is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GME to the average of the S&P500 Index (25.98), we can say GME is valued inline with the index average.

		Industry Rank	Sector Rank
PE	25.01
Fwd PE	29.35

4.2 Price Multiples

GME's Enterprise Value to EBITDA is on the same level as the industry average.
GME's Price/Free Cash Flow ratio is in line with the industry average.