GAMESTOP CORP-CLASS A (GME)
US36467W1099 - Common Stock
GME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. While GME seems to be doing ok healthwise, there are quite some concerns on its 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.
In the past year GME has reported a negative cash flow from operations.
GME had negative earnings in 4 of the past 5 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 0.25%. This is comparable to the rest of the industry: GME outperforms 50.00% of its industry peers.
With a Return On Equity value of 0.50%, GME perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 0.5% | ||
| ROIC | N/A |
ROA(3y)-6.9%
ROA(5y)-9.22%
ROE(3y)-15.66%
ROE(5y)-34.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GME's Profit Margin of 0.13% is in line compared to the rest of the industry. GME outperforms 49.21% of its industry peers.
The Gross Margin of GME (24.54%) is worse than 75.40% of its industry peers.
GME's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 0.13% | ||
| GM | 24.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.27%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
GME does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for GME has been increased compared to 1 year ago.
The number of shares outstanding for GME has been reduced compared to 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 3.72. This indicates that GME is financially healthy and has little risk of bankruptcy at the moment.
GME has a Altman-Z score of 3.72. This is amongst the best in the industry. GME outperforms 80.95% of its industry peers.
GME has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
GME's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. GME outperforms 76.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.72 |
ROIC/WACCN/A
WACC9.24%
2.3 Liquidity
A Current Ratio of 2.11 indicates that GME has no problem at all paying its short term obligations.
The Current ratio of GME (2.11) is better than 80.95% of its industry peers.
GME has a Quick Ratio of 1.44. This is a normal value and indicates that GME is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.44, GME belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.90% over the past year.
GME shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.58% yearly.
GME shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.04%.
Measured over the past years, GME shows a decrease in Revenue. The Revenue has been decreasing by -8.64% on average per year.
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y-40.58%
EPS growth Q2Q37.5%
Revenue 1Y (TTM)-11.04%
Revenue growth 3Y1.18%
Revenue growth 5Y-8.64%
Revenue growth Q2Q-19.44%
3.2 Future
GME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.59% yearly.
The Revenue is expected to decrease by -9.07% on average over the next years.
EPS Next Y-79.8%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.29%
Revenue Next 2Y-9.07%
Revenue Next 3YN/A
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 224.20 indicates a quite expensive valuation of GME.
GME's Price/Earnings ratio is in line with the industry average.
GME's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
A Price/Forward Earnings ratio of 1109.90 indicates a quite expensive valuation of GME.
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 61.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. GME is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 224.2 | ||
| Fwd PE | 1109.9 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 71.5 |
4.3 Compensation for Growth
GME's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for GME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GAMESTOP CORP-CLASS A
NYSE:GME (4/25/2024, 7:04:00 PM)
After market: 11.22 +0.01 (+0.09%)11.21
+0.28 (+2.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 224.2 | ||
| Fwd PE | 1109.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 0.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 0.13% | ||
| GM | 24.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)104.9%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-79.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.04%
Revenue growth 3Y1.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y