GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
USA - NYSE:GME - US36467W1099 - Common Stock
22.95 USD
-0.43 (-1.84%)
22.96 USD
+0.01 (+0.04%)
GME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 120 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
In the past year GME was profitable.
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 has a better Return On Assets (3.50%) than 62.50% of its industry peers.
With a decent Return On Equity value of 7.00%, GME is doing good in the industry, outperforming 63.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.12%, GME is in line with its industry, outperforming 40.83% of the companies in the same 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
GME has a better Profit Margin (9.41%) than 87.50% of its industry peers.
GME has a Operating Margin of 3.77%. This is comparable to the rest of the industry: GME outperforms 58.33% of its industry peers.
GME has a worse Gross Margin (30.06%) than 65.83% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GME is destroying value.
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
Compared to 1 year ago, GME has an improved debt to assets ratio.
2.2 Solvency
GME has an Altman-Z score of 2.65. 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.
GME has a Altman-Z score (2.65) which is in line with its industry peers.
A Debt/Equity ratio of 0.80 indicates that GME is somewhat dependend on debt financing.
GME has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: GME outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.65 |
ROIC/WACC0.12
WACC9.45%
2.3 Liquidity
A Current Ratio of 11.37 indicates that GME has no problem at all paying its short term obligations.
GME has a Current ratio of 11.37. This is amongst the best in the industry. GME outperforms 100.00% of its industry peers.
A Quick Ratio of 10.79 indicates that GME has no problem at all paying its short term obligations.
GME has a Quick ratio of 10.79. This is amongst the best in the industry. GME outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.37 | ||
| Quick Ratio | 10.79 |
3. Growth
3.1 Past
GME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 609.09%, which is quite impressive.
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
GME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.42% yearly.
The Revenue is expected to decrease by -14.63% on average over the next years. This is quite bad
EPS Next Y250.67%
EPS Next 2Y53.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.42 indicates a quite expensive valuation of GME.
GME's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GME to the average of the S&P500 Index (27.31), we can say GME is valued inline with the index average.
The Price/Forward Earnings ratio is 39.01, which means the current valuation is very expensive for GME.
GME's Price/Forward Earnings ratio is in line with the industry average.
GME is valuated expensively when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 39.01 |
4.2 Price Multiples
GME's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GME is more expensive than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.92 |
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)0.12
PEG (5Y)2.17
EPS Next 2Y53.4%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
No dividends for GME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.95
-0.43 (-1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners40.61%
Inst Owner Change-0.06%
Ins Owners8.58%
Ins Owner Change0.35%
Market Cap10.27B
Analysts40
Price Target13.77 (-40%)
Short Float %16.34%
Short Ratio7.8
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)12.99%
EPS NQ rev (3m)31.58%
EPS NY rev (1m)20.06%
EPS NY rev (3m)20.06%
Revenue NQ rev (1m)10.48%
Revenue NQ rev (3m)22.87%
Revenue NY rev (1m)7.44%
Revenue NY rev (3m)18.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.42 | ||
| Fwd PE | 39.01 | ||
| P/S | 2.67 | ||
| P/FCF | N/A | ||
| P/OCF | 21.07 | ||
| P/B | 1.98 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 34.92 |
EPS(TTM)0.78
EY3.4%
EPS(NY)0.59
Fwd EY2.56%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)1.09
OCFY4.75%
SpS8.59
BVpS11.56
TBVpS10.38
PEG (NY)0.12
PEG (5Y)2.17
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
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-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 | 2.65 |
F-Score6
WACC9.45%
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 Y250.67%
EPS Next 2Y53.4%
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