GAMESTOP CORP-CLASS A (GME)

US36467W1099 - Common Stock

16.47  +3.71 (+29.08%)

After market: 16.1 -0.37 (-2.25%)

Fundamental Rating

3

GME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. The financial health of GME is average, but there are quite some concerns on its profitability. GME is valued expensive and it does not seem to be growing.



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1

1. Profitability

1.1 Basic Checks

GME had positive earnings in the past year.
GME had a negative operating cash flow in the past year.
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's Return On Assets of 0.25% is in line compared to the rest of the industry. GME outperforms 50.00% of its industry peers.
GME has a Return On Equity of 0.50%. This is comparable to the rest of the industry: GME outperforms 55.56% of its industry peers.
Industry RankSector Rank
ROA 0.25%
ROE 0.5%
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

With a Profit Margin value of 0.13%, GME perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
The Gross Margin of GME (24.54%) is worse than 75.40% of its industry peers.
In the last couple of years the Gross Margin of GME has declined.
Industry RankSector Rank
OM N/A
PM (TTM) 0.13%
GM 24.54%
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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6

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.
Compared to 5 years ago, GME has less shares outstanding
Compared to 1 year ago, GME has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 4.47 indicates that GME is not in any danger for bankruptcy at the moment.
GME's Altman-Z score of 4.47 is amongst the best of the industry. GME outperforms 85.71% of its industry peers.
GME has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
GME's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. GME outperforms 77.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 4.47
ROIC/WACCN/A
WACC9.18%

2.3 Liquidity

GME has a Current Ratio of 2.11. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
GME has a better Current ratio (2.11) than 80.16% of its industry peers.
A Quick Ratio of 1.44 indicates that GME should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, GME belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 1.44

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 104.90% over the past year.
The earnings per share for GME have been decreasing by -40.58% on average. This is quite bad
The Revenue for GME has decreased by -11.04% in the past year. This is quite bad
GME shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.64% yearly.
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y-40.58%
EPS growth Q2Q37.5%
Revenue 1Y (TTM)-11.04%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Revenue growth Q2Q-19.44%

3.2 Future

GME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.59% yearly.
Based on estimates for the next years, GME will show a decrease in Revenue. The Revenue will decrease by -9.07% on average per year.
EPS Next Y-79.8%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.29%
Revenue Next 2Y-9.07%
Revenue Next 3YN/A
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 329.40, the valuation of GME can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GME.
Compared to an average S&P500 Price/Earnings ratio of 28.28, GME is valued quite expensively.
GME is valuated quite expensively with a Price/Forward Earnings ratio of 1630.69.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GME indicates a slightly more expensive valuation: GME is more expensive than 62.70% of the companies listed in the same industry.
GME's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.88.
Industry RankSector Rank
PE 329.4
Fwd PE 1630.69

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GME is valued a bit more expensive than 67.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 135.64

4.3 Compensation for Growth

A more expensive valuation may be justified as GME's earnings are expected to grow with 14.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A

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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 (5/3/2024, 7:04:00 PM)

After market: 16.1 -0.37 (-2.25%)

16.47

+3.71 (+29.08%)

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 Cap5.04B
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 329.4
Fwd PE 1630.69
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 0.25%
ROE 0.5%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) 0.13%
GM 24.54%
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 Turnover1.95
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.11
Quick Ratio 1.44
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)
Growth
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-79.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.04%
Revenue growth 3Y1.18%
Revenue growth 5Y
Revenue growth 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