GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
USA - NYSE:GME - US36467W1099 - Common Stock
20.66 USD
-0.3 (-1.43%)
20.71 USD
+0.05 (+0.24%)
Overall GME gets a fundamental rating of 3 out of 10. We evaluated GME against 122 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 does not seem to be growing, but still is valued expensively.
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.
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
Looking at the Return On Assets, with a value of 3.50%, GME is in the better half of the industry, outperforming 62.30% of the companies in the same industry.
The Return On Equity of GME (7.00%) is better than 63.11% of its industry peers.
GME has a Return On Invested Capital (1.12%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 7% | ||
| ROIC | 1.12% |
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 9.41%, GME belongs to the top of the industry, outperforming 87.70% of the companies in the same industry.
Looking at the Operating Margin, with a value of 3.77%, GME is in line with its industry, outperforming 57.38% of the companies in the same industry.
GME's Gross Margin of 30.06% is on the low side compared to the rest of the industry. GME is outperformed by 66.39% of its industry peers.
GME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.06% |
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.
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.
Compared to 1 year ago, GME has an improved debt to assets ratio.
2.2 Solvency
GME has an Altman-Z score of 2.53. 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.
With a Altman-Z score value of 2.53, GME perfoms like the industry average, outperforming 56.56% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that GME is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, GME is in line with its industry, outperforming 46.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.53 |
ROIC/WACC0.12
WACC9.24%
2.3 Liquidity
A Current Ratio of 11.37 indicates that GME has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 11.37, GME belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 10.79 indicates that GME has no problem at all paying its short term obligations.
The Quick ratio of GME (10.79) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.37 | ||
| Quick Ratio | 10.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 609.09% 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 -15.48% 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)609.09%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%2400%
Revenue 1Y (TTM)-15.48%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%21.78%
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.
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 quite expensively with a Price/Earnings ratio of 26.49.
GME's Price/Earnings is on the same level as the industry average.
GME's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 25.25, the valuation of GME can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GME is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, GME is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 25.25 |
4.2 Price Multiples
63.93% of the companies in the same industry are cheaper than GME, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.09
PEG (5Y)1.96
EPS Next 2Y80.9%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
No dividends for GME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.66
-0.3 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners40.61%
Inst Owner Change0.12%
Ins Owners8.58%
Ins Owner Change0.35%
Market Cap9.25B
Revenue(TTM)3.85B
Net Income(TTM)362.10M
Analysts40
Price Target13.77 (-33.35%)
Short Float %17.13%
Short Ratio7.92
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)189.48%
Min EPS beat(2)58.16%
Max EPS beat(2)320.79%
EPS beat(4)4
Avg EPS beat(4)210.95%
Min EPS beat(4)58.16%
Max EPS beat(4)320.79%
EPS beat(8)6
Avg EPS beat(8)124.66%
EPS beat(12)8
Avg EPS beat(12)105.72%
EPS beat(16)9
Avg EPS beat(16)46.81%
Revenue beat(2)1
Avg Revenue beat(2)6.53%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)16.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-14.03%
Max Revenue beat(4)16.92%
Revenue beat(8)1
Avg Revenue beat(8)-6.51%
Revenue beat(12)3
Avg Revenue beat(12)-6.09%
Revenue beat(16)6
Avg Revenue beat(16)-4.49%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.58%
EPS NY rev (1m)14.06%
EPS NY rev (3m)36.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)22.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)18.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 25.25 | ||
| P/S | 2.41 | ||
| P/FCF | N/A | ||
| P/OCF | 18.97 | ||
| P/B | 1.79 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 28.57 |
EPS(TTM)0.78
EY3.78%
EPS(NY)0.82
Fwd EY3.96%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)1.09
OCFY5.27%
SpS8.59
BVpS11.56
TBVpS10.38
PEG (NY)0.09
PEG (5Y)1.96
Graham Number14.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 7% | ||
| ROCE | 1.53% | ||
| ROIC | 1.12% | ||
| ROICexc | 13.04% | ||
| ROICexgc | 36.97% | ||
| OM | 3.77% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.06% | ||
| FCFM | 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
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 24.49 | ||
| Cap/Depr | 2077.02% | ||
| Cap/Sales | 13.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 287.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 11.37 | ||
| Quick Ratio | 10.79 | ||
| Altman-Z | 2.53 |
F-Score6
WACC9.24%
ROIC/WACC0.12
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)609.09%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%2400%
EPS Next Y299.96%
EPS Next 2Y80.9%
EPS Next 3Y5.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.48%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%21.78%
Revenue Next Year3.5%
Revenue Next 2Y3.17%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
EBIT growth 1Y631.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-110.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.59%
OCF growth 3YN/A
OCF growth 5YN/A
GAMESTOP CORP-CLASS A / GME FAQ
What is the ChartMill fundamental rating of GAMESTOP CORP-CLASS A (GME) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GME.
What is the valuation status for GME stock?
ChartMill assigns a valuation rating of 2 / 10 to GAMESTOP CORP-CLASS A (GME). This can be considered as Overvalued.
How profitable is GAMESTOP CORP-CLASS A (GME) stock?
GAMESTOP CORP-CLASS A (GME) has a profitability rating of 4 / 10.
What are the PE and PB ratios of GAMESTOP CORP-CLASS A (GME) stock?
The Price/Earnings (PE) ratio for GAMESTOP CORP-CLASS A (GME) is 26.49 and the Price/Book (PB) ratio is 1.79.
How financially healthy is GAMESTOP CORP-CLASS A?
The financial health rating of GAMESTOP CORP-CLASS A (GME) is 5 / 10.