GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
NYSE:GME - New York Stock Exchange, Inc. - US36467W1099 - Common Stock - Currency: USD
Taking everything into account, GME scores 4 out of 10 in our fundamental rating. GME was compared to 123 industry peers in the Specialty Retail industry. GME has a great financial health rating, but its profitability evaluates not so good. 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.
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 2.78%, GME is doing good in the industry, outperforming 60.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.18%, GME is in the better half of the industry, outperforming 64.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.65%, GME is doing worse than 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 4.18% | ||
| ROIC | 0.65% |
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 (5.67%) than 79.67% of its industry peers.
With a Operating Margin value of 1.60%, GME perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
GME has a Gross Margin of 30.55%. This is in the lower half of the industry: GME underperforms 62.60% of its industry peers.
In the last couple of years the Gross Margin of GME has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.6% | ||
| PM (TTM) | 5.67% | ||
| GM | 30.55% |
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.
GME has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GME has more shares outstanding
GME has a better debt/assets ratio than last year.
2.2 Solvency
GME has an Altman-Z score of 3.92. This indicates that GME is financially healthy and has little risk of bankruptcy at the moment.
GME's Altman-Z score of 3.92 is amongst the best of the industry. GME outperforms 81.30% of its industry peers.
GME has a debt to FCF ratio of 3.85. This is a good value and a sign of high solvency as GME would need 3.85 years to pay back of all of its debts.
GME's Debt to FCF ratio of 3.85 is fine compared to the rest of the industry. GME outperforms 72.36% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that GME is not too dependend on debt financing.
The Debt to Equity ratio of GME (0.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 3.92 |
ROIC/WACC0.07
WACC8.85%
2.3 Liquidity
A Current Ratio of 8.39 indicates that GME has no problem at all paying its short term obligations.
GME has a Current ratio of 8.39. This is amongst the best in the industry. GME outperforms 99.19% of its industry peers.
A Quick Ratio of 7.89 indicates that GME has no problem at all paying its short term obligations.
GME has a better Quick ratio (7.89) than 99.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.39 | ||
| Quick Ratio | 7.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 671.43% 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.
GME shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.30%.
The Revenue has been decreasing by -9.98% on average over the past years.
EPS 1Y (TTM)671.43%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%241.67%
Revenue 1Y (TTM)-25.3%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-16.94%
3.2 Future
GME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% 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 Y192.09%
EPS Next 2Y32.95%
EPS Next 3Y5.9%
EPS Next 5YN/A
Revenue Next Year-12.44%
Revenue Next 2Y-11.53%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
GME is valuated quite expensively with a Price/Earnings ratio of 42.24.
GME's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.03, GME is valued quite expensively.
The Price/Forward Earnings ratio is 51.62, which means the current valuation is very expensive for GME.
GME's Price/Forward Earnings is on the same level as the industry average.
GME's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.24 | ||
| Fwd PE | 51.62 |
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 67.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GME is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.54 | ||
| EV/EBITDA | 60.33 |
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)0.22
PEG (5Y)3.12
EPS Next 2Y32.95%
EPS Next 3Y5.9%
5. Dividend
5.1 Amount
GME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.81
+0.18 (+0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.54%
Inst Owner Change0%
Ins Owners8.55%
Ins Owner Change1.32%
Market Cap10.20B
Analysts40
Price Target13.77 (-39.63%)
Short Float %16.68%
Short Ratio4.17
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)296.04%
Min EPS beat(2)271.29%
Max EPS beat(2)320.79%
EPS beat(4)4
Avg EPS beat(4)224.32%
Min EPS beat(4)111.65%
Max EPS beat(4)320.79%
EPS beat(8)6
Avg EPS beat(8)127.26%
EPS beat(12)8
Avg EPS beat(12)101.56%
EPS beat(16)8
Avg EPS beat(16)42.35%
Revenue beat(2)0
Avg Revenue beat(2)-8.95%
Min Revenue beat(2)-14.03%
Max Revenue beat(2)-3.86%
Revenue beat(4)0
Avg Revenue beat(4)-8.42%
Min Revenue beat(4)-14.03%
Max Revenue beat(4)-3.86%
Revenue beat(8)1
Avg Revenue beat(8)-8.51%
Revenue beat(12)2
Avg Revenue beat(12)-8.43%
Revenue beat(16)6
Avg Revenue beat(16)-5.27%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)160.83%
EPS NY rev (1m)0%
EPS NY rev (3m)58.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.24 | ||
| Fwd PE | 51.62 | ||
| P/S | 2.78 | ||
| P/FCF | 26.54 | ||
| P/OCF | 25.6 | ||
| P/B | 2.05 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 60.33 |
EPS(TTM)0.54
EY2.37%
EPS(NY)0.44
Fwd EY1.94%
FCF(TTM)0.86
FCFY3.77%
OCF(TTM)0.89
OCFY3.91%
SpS8.21
BVpS11.15
TBVpS11.15
PEG (NY)0.22
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 4.18% | ||
| ROCE | 0.88% | ||
| ROIC | 0.65% | ||
| ROICexc | 16.02% | ||
| ROICexgc | 16.02% | ||
| OM | 1.6% | ||
| PM (TTM) | 5.67% | ||
| GM | 30.55% | ||
| FCFM | 10.47% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.85 | ||
| Debt/EBITDA | 17.12 | ||
| Cap/Depr | 50.9% | ||
| Cap/Sales | 0.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 460.81% | ||
| Profit Quality | 184.59% | ||
| Current Ratio | 8.39 | ||
| Quick Ratio | 7.89 | ||
| Altman-Z | 3.92 |
F-Score6
WACC8.85%
ROIC/WACC0.07
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)671.43%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%241.67%
EPS Next Y192.09%
EPS Next 2Y32.95%
EPS Next 3Y5.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.3%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-16.94%
Revenue Next Year-12.44%
Revenue Next 2Y-11.53%
Revenue Next 3Y-14.63%
Revenue Next 5YN/A
EBIT growth 1Y368.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year268.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y50.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.83%
OCF growth 3YN/A
OCF growth 5YN/A