GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GME - US36467W1099 - Common Stock
20.08 USD
-0.42 (-2.05%)
20.0201 USD
-0.06 (-0.3%)
GME gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 123 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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's Return On Assets of 4.00% is fine compared to the rest of the industry. GME outperforms 65.04% of its industry peers.
Looking at the Return On Equity, with a value of 7.95%, GME is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
GME has a Return On Invested Capital of 1.69%. This is comparable to the rest of the industry: GME outperforms 42.28% of 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 has a Profit Margin of 11.08%. This is amongst the best in the industry. GME outperforms 92.68% of its industry peers.
The Operating Margin of GME (5.83%) is better than 72.36% of its industry peers.
The Gross Margin of GME (30.79%) is worse than 65.85% 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%
2. Health
2.1 Basic Checks
GME has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GME has more shares outstanding
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 2.46. 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 2.46, GME is in line with its industry, outperforming 54.47% of the companies in the same industry.
The Debt to FCF ratio of GME is 69.15, which is on the high side as it means it would take GME, 69.15 years of fcf income to pay off all of its debts.
GME's Debt to FCF ratio of 69.15 is in line compared to the rest of the industry. GME outperforms 43.09% of its industry peers.
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 of 0.78. This is comparable to the rest of the industry: GME outperforms 46.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 69.15 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.18
WACC9.59%
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.
With an excellent Current ratio value of 10.39, GME belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 |
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.
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
Based on estimates for the next years, GME will show a small growth in Earnings Per Share. The EPS will grow by 5.42% on average per year.
The Revenue is expected to decrease by -14.63% on average over the next years. This is quite bad
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 20.92.
Compared to the rest of the industry, the Price/Earnings ratio of GME indicates a somewhat cheap valuation: GME is cheaper than 71.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, GME is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 24.54, the valuation of GME can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as GME.
GME is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 24.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GME.
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 | 149.4 | ||
| EV/EBITDA | 13.76 |
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)0.07
PEG (5Y)1.54
EPS Next 2Y80.9%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
GME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
20.08
-0.42 (-2.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners39.68%
Inst Owner Change46.43%
Ins Owners8.57%
Ins Owner Change0.37%
Market Cap8.99B
Revenue(TTM)3.81B
Net Income(TTM)421.80M
Analysts40
Price Target13.77 (-31.42%)
Short Float %16.62%
Short Ratio10.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)38.49%
Min EPS beat(2)18.81%
Max EPS beat(2)58.16%
EPS beat(4)4
Avg EPS beat(4)167.26%
Min EPS beat(4)18.81%
Max EPS beat(4)320.79%
EPS beat(8)6
Avg EPS beat(8)114.51%
EPS beat(12)9
Avg EPS beat(12)108.2%
EPS beat(16)10
Avg EPS beat(16)58.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-17.67%
Max Revenue beat(2)16.92%
Revenue beat(4)1
Avg Revenue beat(4)-4.66%
Min Revenue beat(4)-17.67%
Max Revenue beat(4)16.92%
Revenue beat(8)1
Avg Revenue beat(8)-7.51%
Revenue beat(12)3
Avg Revenue beat(12)-6.46%
Revenue beat(16)5
Avg Revenue beat(16)-6.09%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.21%
EPS NY rev (1m)0%
EPS NY rev (3m)14.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 24.54 | ||
| P/S | 2.36 | ||
| P/FCF | 149.4 | ||
| P/OCF | 15.64 | ||
| P/B | 1.7 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)0.96
EY4.78%
EPS(NY)0.82
Fwd EY4.07%
FCF(TTM)0.13
FCFY0.67%
OCF(TTM)1.28
OCFY6.39%
SpS8.5
BVpS11.84
TBVpS10.68
PEG (NY)0.07
PEG (5Y)1.54
Graham Number15.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 7.95% | ||
| ROCE | 2.31% | ||
| ROIC | 1.69% | ||
| ROICexc | 20.66% | ||
| ROICexgc | 60.5% | ||
| OM | 5.83% | ||
| PM (TTM) | 11.08% | ||
| GM | 30.79% | ||
| FCFM | 1.58% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 69.15 | ||
| Debt/EBITDA | 17.14 | ||
| Cap/Depr | 2463.16% | ||
| Cap/Sales | 13.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 236.82% | ||
| Profit Quality | 14.27% | ||
| Current Ratio | 10.39 | ||
| Quick Ratio | 9.77 | ||
| Altman-Z | 2.46 |
F-Score6
WACC9.59%
ROIC/WACC0.18
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)464.71%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%300%
EPS Next Y299.96%
EPS Next 2Y80.9%
EPS Next 3Y5.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.13%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-4.57%
Revenue Next Year3.5%
Revenue Next 2Y3.17%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
EBIT growth 1Y693.32%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-43.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y295.19%
OCF growth 3YN/A
OCF growth 5YN/A
GAMESTOP CORP-CLASS A / GME FAQ
What is the fundamental rating for GME stock?
ChartMill assigns a fundamental rating of 4 / 10 to GME.
Can you provide the valuation status for GAMESTOP CORP-CLASS A?
ChartMill assigns a valuation rating of 4 / 10 to GAMESTOP CORP-CLASS A (GME). This can be considered as Fairly Valued.
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.