GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
NYSE:GME - New York Stock Exchange, Inc. - US36467W1099 - Common Stock - Currency: USD
Taking everything into account, GME scores 4 out of 10 in our fundamental rating. GME was compared to 120 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.
In the past year GME had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GME reported negative net income in multiple years.
In multiple years GME reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.23%, GME is in line with its industry, outperforming 56.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.66%, GME is in the better half of the industry, outperforming 60.83% of the companies in the same industry.
| 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 70.83% of its industry peers.
GME has a Gross Margin of 29.14%. This is in the lower half of the industry: GME underperforms 68.33% 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 | 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.
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
GME has a better debt/assets ratio than last year.
2.2 Solvency
GME has an Altman-Z score of 7.86. This indicates that GME is financially healthy and has little risk of bankruptcy at the moment.
GME has a Altman-Z score of 7.86. This is amongst the best in the industry. GME outperforms 97.50% of its industry peers.
The Debt to FCF ratio of GME is 0.13, which is an excellent value as it means it would take GME, only 0.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GME (0.13) is better than 82.50% 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 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 7.86 |
ROIC/WACCN/A
WACC9.47%
2.3 Liquidity
A Current Ratio of 8.05 indicates that GME has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.05, GME belongs to the top 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.
Looking at the Quick ratio, with a value of 7.33, GME belongs to the top of the industry, outperforming 99.17% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 13.54% on average over the past years. This is quite good.
Looking at the last year, GME shows a very negative growth in Revenue. The Revenue has decreased by -27.50% in the last year.
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)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
GME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.83% yearly.
The Revenue is expected to decrease by -14.63% on average over the next years. This is quite bad
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
With a Price/Earnings ratio of 88.56, GME can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as GME.
When comparing the Price/Earnings ratio of GME to the average of the S&P500 Index (26.31), we can say GME is valued expensively.
With a Price/Forward Earnings ratio of 48.18, GME can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, GME is valued a bit more expensive than 64.17% of the companies in the same industry.
GME is valuated expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.56 | ||
| Fwd PE | 48.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GME is valued a bit more expensive than 71.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GME is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.41 | ||
| EV/EBITDA | 228.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as GME's earnings are expected to grow with 23.83% in the coming years.
PEG (NY)1.06
PEG (5Y)6.54
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 |
22.14
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners32.89%
Inst Owner Change6.93%
Ins Owners0.17%
Ins Owner Change1.09%
Market Cap9.90B
Analysts40
Price Target13.77 (-37.8%)
Short Float %12.11%
Short Ratio3.43
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 | 88.56 | ||
| Fwd PE | 48.18 | ||
| P/S | 2.59 | ||
| P/FCF | 76.41 | ||
| P/OCF | 67.97 | ||
| P/B | 2.01 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 228.89 |
EPS(TTM)0.25
EY1.13%
EPS(NY)0.46
Fwd EY2.08%
FCF(TTM)0.29
FCFY1.31%
OCF(TTM)0.33
OCFY1.47%
SpS8.55
BVpS11.02
TBVpS11.02
PEG (NY)1.06
PEG (5Y)6.54
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 | 7.86 |
F-Score7
WACC9.47%
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