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GME

GameStopNYSE:GME Stock Report

Market Cap

US$13.1b

7D

-6.0%

1Y

1,367.9%

Updated

27 Oct, 2021

Data

Company Financials +
GME fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends0/6

GME Overview

GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe.

GameStop Competitors

Best Buy

NYSE:BBY

US$29.2b

Microsoft

NasdaqGS:MSFT

US$2.4t

Amazon.com

NasdaqGS:AMZN

US$1.7t

Walmart

NYSE:WMT

US$411.4b

Price History & Performance

Summary of all time highs, changes and price drops for GameStop
Historical stock prices
Current Share PriceUS$173.51
52 Week HighUS$10.36
52 Week LowUS$483.00
Beta-1.79
1 Month Change-8.43%
3 Month Change5.25%
1 Year Change1,367.94%
3 Year Change1,088.43%
5 Year Change729.00%
Change since IPO1,626.47%

Recent News & Updates

Oct 22

GameStop: Retail Investors Are Just Half The Story, Don't Invest Into Short Squeezes

The SEC recently released a report examining meme stocks and the short squeeze at GameStop and there are several important insights. The share price didn’t soar due to short covering, there was no gamma squeeze or naked short-selling and many hedge funds were long the stock. There was no short squeeze in the last week of January and the reason the share price remains high could be a lack of short sellers. Overall, I think GameStop’s market valuation can’t remain disconnected from the fundamentals forever, but picking up and timing a sizeable short position could be close to impossible.

Oct 11

GameStop: The Fundamental View

GameStop's stock is still above its pre-squeeze levels despite bleak growth perspectives. The balance sheet is the outstanding fundamental pillar because of excellent stock buyback and stock issuance decisions of the management. While the management has always been shareholder-friendly, the business is still suffering from competition and the lack of growth. Although I sold the stock too early in the midst of the squeeze, I am satisfied with a 215% return. At current levels, the stock seems to be overvalued.

Sep 18

GameStop: With Short Interest Of Less Than 15% Don't Expect Another Squeeze

GameStop continues to be a struggling video gaming retailer with limited upside and no ability to create additional shareholder value anytime soon. With short interest of less than 15%, investors shouldn’t expect to see another squeeze happening in the following months. We stick to our opinion that it’s better to avoid GameStop, especially since its stock is extremely overvalued at the current price.

Sep 10
Is GameStop (NYSE:GME) Using Debt Sensibly?

Is GameStop (NYSE:GME) Using Debt Sensibly?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

GMEUS Specialty RetailUS Market
7D-6.0%-0.1%-0.3%
1Y1,367.9%48.6%37.0%

Return vs Industry: GME exceeded the US Specialty Retail industry which returned 45.7% over the past year.

Return vs Market: GME exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is GME's price volatile compared to industry and market?
GME volatility
GME Beta-1.79
Industry Beta1.55
Market Beta1

Stable Share Price: GME is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GME's weekly volatility has decreased from 38% to 10% over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
199623,500Matt Furlonghttps://www.gamestop.com

GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned video game platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned video game software; and in-game digital currency, digital downloadable content, and full-game downloads, as well as network points cards, and prepaid digital and subscription cards. It also sells collectibles comprising licensed merchandise primarily related to the video game, television, and movie industries, as well as pop culture themes.

GameStop Fundamentals Summary

How do GameStop's earnings and revenue compare to its market cap?
GME fundamental statistics
Market CapUS$13.12b
Earnings (TTM)-US$66.90m
Revenue (TTM)US$5.59b

2.3x

P/S Ratio

-196.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GME income statement (TTM)
RevenueUS$5.59b
Cost of RevenueUS$4.21b
Gross ProfitUS$1.38b
ExpensesUS$1.44b
Earnings-US$66.90m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.89
Gross Margin24.63%
Net Profit Margin-1.20%
Debt/Equity Ratio2.6%

How did GME perform over the long term?

See historical performance and comparison

Valuation

Is GameStop undervalued compared to its fair value and its price relative to the market?

7.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GME's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GME's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GME is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: GME is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GME's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GME is overvalued based on its PB Ratio (7.1x) compared to the US Specialty Retail industry average (2.9x).


Future Growth

How is GameStop forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

119.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GME is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GME is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GME's is expected to become profitable in the next 3 years.

Revenue vs Market: GME's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: GME's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GME's Return on Equity is forecast to be high in 3 years time


Past Performance

How has GameStop performed over the past 5 years?

-44.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GME is currently unprofitable.

Growing Profit Margin: GME is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GME is unprofitable, and losses have increased over the past 5 years at a rate of 44% per year.

Accelerating Growth: Unable to compare GME's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GME is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (158.2%).


Return on Equity

High ROE: GME has a negative Return on Equity (-3.61%), as it is currently unprofitable.


Financial Health

How is GameStop's financial position?


Financial Position Analysis

Short Term Liabilities: GME's short term assets ($2.7B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: GME's short term assets ($2.7B) exceed its long term liabilities ($499.5M).


Debt to Equity History and Analysis

Debt Level: GME's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: GME's debt to equity ratio has reduced from 37.8% to 2.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GME has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GME has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 33.5% each year


Dividend

What is GameStop current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GME's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GME's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GME is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GME's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Matt Furlong (42 yo)

0.33

Tenure

Mr. Matthew Furlong, also known as Matt, serves as President, Chief Executive Officer & Director of GameStop Corp. since June 21, 2021. He is a veteran e-commerce leader with significant experience impleme...


Leadership Team

Experienced Management: GME's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: GME's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16%.


Top Shareholders

Company Information

GameStop Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: GameStop Corp.
  • Ticker: GME
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: US$13.116b
  • Shares outstanding: 75.59m
  • Website: https://www.gamestop.com

Number of Employees


Location

  • GameStop Corp.
  • 625 Westport Parkway
  • Grapevine
  • Texas
  • 76051
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 23:03
End of Day Share Price2021/10/27 00:00
Earnings2021/07/31
Annual Earnings2021/01/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.