GAMESTOP CORP-CLASS A (GME) Stock Fundamental Analysis
NYSE:GME - New York Stock Exchange, Inc. - US36467W1099 - Common Stock - Currency: USD
GME gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. No worries on liquidiy or solvency for GME as it has an excellent financial health rating, but there are worries on the profitability. 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
With a Return On Assets value of 2.78%, GME perfoms like the industry average, outperforming 57.85% of the companies in the same industry.
GME has a better Return On Equity (4.18%) than 61.16% of its industry peers.
GME has a worse Return On Invested Capital (0.65%) than 61.16% of its industry peers.
| 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 79.34% of its industry peers.
With a Operating Margin value of 1.60%, GME perfoms like the industry average, outperforming 47.11% of the companies in the same industry.
GME has a worse Gross Margin (30.55%) than 64.46% of its industry peers.
GME's Gross Margin has been stable in the last couple of years.
| 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
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
GME has an Altman-Z score of 4.01. This indicates that GME is financially healthy and has little risk of bankruptcy at the moment.
GME has a better Altman-Z score (4.01) than 82.64% of its industry peers.
The Debt to FCF ratio of GME is 3.85, which is a good value as it means it would take GME, 3.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.85, GME is in the better half of the industry, outperforming 69.42% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that GME is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, GME perfoms like the industry average, outperforming 57.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.07
WACC9.58%
2.3 Liquidity
GME has a Current Ratio of 8.39. This indicates that GME is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 8.39, GME belongs to the top of the industry, outperforming 99.17% of the companies in the same industry.
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 99.17% 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 400.00% 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 -25.30% 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)400%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%181.82%
Revenue 1Y (TTM)-25.3%
Revenue growth 3Y-14%
Revenue growth 5Y-9.98%
Sales Q2Q%-16.94%
3.2 Future
The Earnings Per Share is expected to grow by 5.90% on average over the next years.
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
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
A Price/Earnings ratio of 93.76 indicates a quite expensive valuation of GME.
Compared to the rest of the industry, the Price/Earnings ratio of GME is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.34, GME is valued quite expensively.
GME is valuated quite expensively with a Price/Forward Earnings ratio of 53.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GME indicates a slightly more expensive valuation: GME is more expensive than 66.12% of the companies listed in the same industry.
GME is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.76 | ||
| Fwd PE | 53.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GME is valued a bit more expensive than the industry average as 69.42% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, GME is valued a bit cheaper than 61.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.27 | ||
| EV/EBITDA | 64.5 |
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)0.49
PEG (5Y)6.93
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 |
23.44
+0.45 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners34.54%
Inst Owner Change6.93%
Ins Owners8.55%
Ins Owner Change1.09%
Market Cap10.48B
Analysts40
Price Target13.77 (-41.25%)
Short Float %11.62%
Short Ratio3.06
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)214.29%
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.76 | ||
| Fwd PE | 53.05 | ||
| P/S | 2.85 | ||
| P/FCF | 27.27 | ||
| P/OCF | 26.3 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 64.5 |
EPS(TTM)0.25
EY1.07%
EPS(NY)0.44
Fwd EY1.89%
FCF(TTM)0.86
FCFY3.67%
OCF(TTM)0.89
OCFY3.8%
SpS8.21
BVpS11.15
TBVpS11.15
PEG (NY)0.49
PEG (5Y)6.93
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 | 4.01 |
F-Score6
WACC9.58%
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)400%
EPS 3YN/A
EPS 5Y13.54%
EPS Q2Q%181.82%
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