NYSE:GME

Stock Analysis Report

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Executive Summary

GameStop Corp. operates as a multichannel video game, consumer electronics, and collectibles retailer in the United States, Canada, Australia, and Europe. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has GameStop's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GME's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.9%

GME

-0.9%

US Specialty Retail

-2.4%

US Market


1 Year Return

134.6%

GME

24.8%

US Specialty Retail

18.2%

US Market

Return vs Industry: GME exceeded the US Specialty Retail industry which returned 27.2% over the past year.

Return vs Market: GME exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

GMEIndustryMarket
7 Day17.9%-0.9%-2.4%
30 Day46.9%6.8%4.2%
90 Day246.9%15.4%6.3%
1 Year134.6%134.6%26.1%24.8%20.9%18.2%
3 Year-19.9%-31.4%86.9%78.6%41.2%31.8%
5 Year-59.2%-68.9%70.9%57.7%84.8%63.9%

Price Volatility Vs. Market

How volatile is GameStop's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GME ($13.91) is trading above our estimate of fair value ($5.56)

Significantly Below Fair Value: GME is trading above our estimate of fair value.


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 (2.6x) compared to the US Specialty Retail industry average (1.9x).


Next Steps

Future Growth

How is GameStop forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

104.5%

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 (2.2%).

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 (4.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: GME's revenue (4.4% per year) is forecast to grow slower than 20% 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


Next Steps

Past Performance

How has GameStop performed over the past 5 years?

-61.2%

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 61.2% 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 (2.2%).


Return on Equity

High ROE: GME has a negative Return on Equity (-94.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is GameStop's financial position?


Financial Position Analysis

Short Term Liabilities: GME's short term assets ($1.4B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: GME's short term assets ($1.4B) exceed its long term liabilities ($710.7M).


Debt to Equity History and Analysis

Debt Level: GME's debt to equity ratio (134%) is considered high.

Reducing Debt: GME's debt to equity ratio has increased from 18.4% to 134% over the past 5 years.

Debt Coverage: GME's debt is well covered by operating cash flow (79.6%).

Interest Coverage: Insufficient data to determine if GME's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

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

George Sherman (58 yo)

1.5yrs

Tenure

US$12,400,377

Compensation

Mr. George E. Sherman has been Chief Executive Officer and Director of GameStop Corp since April 15, 2019. Mr. Sherman has been the Chief Executive Officer of ABC Phones of North Carolina, Inc. since Janua ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD12.40M) is above average for companies of similar size in the US market ($USD2.82M).

Compensation vs Earnings: Insufficient data to compare George's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
George Sherman
CEO & Director1.5yrsUS$12.40m3.62%
$ 32.9m
James Bell
Executive VP & CFO1.33yrsUS$2.08m0.79%
$ 7.1m
Robert Lloyd
Senior Adviser1.33yrsUS$8.94m0.82%
$ 7.4m
Chris Homeister
Executive VP & Chief Merchandising Officer1.33yrsUS$2.04m0.78%
$ 7.1m
Frank Hamlin
Executive VP & Chief Customer Officer1.33yrsUS$2.42m0.60%
$ 5.4m
Diana Saadeh-Jajeh
Senior VP & Chief Accounting Officer0.33yrno datano data
Angela Venuk
VP & Interim CIO1.42yrsno datano data
Mike Loftus
VP of Investor Relations & Global Controllerno datano datano data
Dan Reed
Senior VP1.75yrsno data0.073%
$ 665.7k
Joey Mooring
Senior Director of Corporate Communicationsno datano datano data
Lisa Keglovitz
Senior Vice President of Human Resources1.33yrsno datano data
Marc Summey
Senior Vice President of Real Estate & Development15.58yrsno datano data

1.3yrs

Average Tenure

51.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
George Sherman
CEO & Director1.5yrsUS$12.40m3.62%
$ 32.9m
Kathy Vrabeck
Chairman & Lead Independent Director0.33yrUS$277.73k0.20%
$ 1.8m
Raul Fernandez
Independent Director1.5yrsUS$245.76k0.10%
$ 937.7k
Paul Evans
Independent Director0.33yrno data0.053%
$ 476.9k
Reginald Fils-Aime
Independent Director0.50yrno data0.052%
$ 469.5k
Carrie Teffner
Independent Director2.17yrsUS$277.73k0.13%
$ 1.2m
Kurtis Wolf
Independent Director0.33yrno data0.078%
$ 705.1k
William Simon
Independent Director0.58yrno data0.057%
$ 518.7k
Lizabeth Dunn
Independent Director1.5yrsUS$245.76k0.096%
$ 866.0k
James Symancyk
Independent Director0.58yrno data0.057%
$ 518.7k

0.6yrs

Average Tenure

53yo

Average Age

Experienced Board: GME's board of directors are not considered experienced ( 0.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GameStop Corp.'s company bio, 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$906.398m
  • Shares outstanding: 65.16m
  • Website: https://www.gamestop.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMENYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2002
GS2CDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2002
GME *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNFeb 2002

Biography

GameStop Corp. operates as a multichannel video game, consumer electronics, and collectibles retailer in the United States, Canada, Australia, and Europe. The company sells new and pre-owned video game pla ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 23:49
End of Day Share Price2020/10/19 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.