We assign a fundamental rating of 3 out of 10 to GME. GME was compared to 122 industry peers in the Specialty Retail industry. GME has an average financial health and profitability rating. GME does not seem to be growing, but still is valued expensively.

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.
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

GME has a Return On Assets of 4.00%. This is in the better half of the industry: GME outperforms 64.75% 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 63.93% of the companies in the same industry.
With a Return On Invested Capital value of 1.69%, GME perfoms like the industry average, outperforming 42.62% of the companies in the same industry.

		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

Looking at the Profit Margin, with a value of 11.08%, GME belongs to the top of the industry, outperforming 92.62% of the companies in the same industry.
GME has a Operating Margin of 5.83%. This is in the better half 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GME is destroying value.
The number of shares outstanding for GME has been increased compared to 1 year ago.
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

An Altman-Z score of 2.67 indicates that GME is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GME (2.67) is comparable to the rest of the 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.
The Debt to FCF ratio of GME (69.15) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.78 indicates that GME is somewhat dependend on debt financing.
GME has a Debt to Equity ratio (0.78) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.78
Debt/FCF	69.15
Altman-Z	2.67

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 has a Current ratio of 10.39. This is amongst the best in 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.
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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 464.71% over the past year.
The Earnings Per Share has been growing by 13.54% on average over the past years. This is quite good.
The Revenue for GME has decreased by -12.13% 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 -9.98% yearly.

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.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.01 indicates a quite expensive valuation of GME.
Based on the Price/Earnings ratio, GME is valued a bit cheaper than 68.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. GME is around the same levels.
A Price/Forward Earnings ratio of 29.35 indicates a quite expensive valuation of GME.
GME's Price/Forward Earnings is on the same level as the industry average.
GME's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	25.01
Fwd PE	29.35

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GME.
GME's Price/Free Cash Flow is on the same level as the industry average.