GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GME - US36467W1099 - Common Stock
23.89 USD
-0.32 (-1.32%)
GME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. GME has only an average score on both its financial health and profitability. 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.
- GME had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: GME reported negative net income in multiple 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
- With a decent Return On Assets value of 4.00%, GME is doing good in the industry, outperforming 64.75% of the companies in the same industry.
- GME's Return On Equity of 7.95% is fine compared to the rest 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
- The Profit Margin of GME (11.08%) is better than 92.62% of its industry peers.
- Looking at the Operating Margin, with a value of 5.83%, GME is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
- Looking at the Gross Margin, with a value of 30.79%, GME is doing worse than 65.57% of the companies in the same industry.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GME is destroying value.
- 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 2.68. 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.
- Looking at the Altman-Z score, with a value of 2.68, GME is in line with its industry, 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.
- With a Debt to FCF ratio value of 69.15, GME perfoms like the industry average, 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.
- With a Debt to Equity ratio value of 0.78, GME perfoms like the industry average, outperforming 46.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 69.15 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.17
WACC9.68%
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.
- The Current ratio of GME (10.39) is better than 100.00% of its industry peers.
- A Quick Ratio of 9.77 indicates that GME has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 9.77, GME belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.39 | ||
| Quick Ratio | 9.77 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 464.71% 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.
- The Revenue for GME has decreased by -12.13% 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)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
- GME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.42% yearly.
- Based on estimates for the next years, GME will show a very negative growth in Revenue. The Revenue will decrease by -14.63% on average per year.
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.
- 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 rather expensively with a Price/Earnings ratio of 24.89.
- Based on the Price/Earnings ratio, GME is valued a bit cheaper than 68.03% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. GME is around the same levels.
- Based on the Price/Forward Earnings ratio of 29.20, the valuation of GME can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as GME.
- GME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 29.2 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 177.75 | ||
| EV/EBITDA | 21.38 |
4.3 Compensation for Growth
- GME's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.08
PEG (5Y)1.84
EPS Next 2Y80.9%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
- No dividends for GME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
GAMESTOP CORP-CLASS A / GME FAQ
What is the fundamental rating for GME stock?
ChartMill assigns a fundamental rating of 3 / 10 to GME.
Can you provide the valuation status for GAMESTOP CORP-CLASS A?
ChartMill assigns a valuation rating of 3 / 10 to GAMESTOP CORP-CLASS A (GME). This can be considered as Overvalued.
What is the profitability of GME stock?
GAMESTOP CORP-CLASS A (GME) has a profitability rating of 4 / 10.
Can you provide the financial health for GME stock?
The financial health rating of GAMESTOP CORP-CLASS A (GME) is 5 / 10.
What is the expected EPS growth for GAMESTOP CORP-CLASS A (GME) stock?
The Earnings per Share (EPS) of GAMESTOP CORP-CLASS A (GME) is expected to grow by 299.96% in the next year.