GameStop
Market Cap
US$265.0m
Last Updated
2020/02/17 00:00 UTC
Data Sources
Company Financials +
Executive Summary
GameStop Corp. operates as a multichannel video game and consumer electronics retailer in the United States, Canada, Australia, and Europe.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
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
2.0%
GME
2.6%
US Specialty Retail
1.5%
US Market
1 Year Return
-64.8%
GME
17.3%
US Specialty Retail
20.1%
US Market
Return vs Industry: GME underperformed the US Specialty Retail industry which returned 17.3% over the past year.
Return vs Market: GME underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| GME | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 2.6% | 1.5% |
| 30 Day | -15.4% | 0.2% | 1.4% |
| 90 Day | -26.9% | 4.1% | 8.7% |
| 1 Year | -63.6%-64.8% | 19.1%17.3% | 22.7%20.1% |
| 3 Year | -80.7%-84.3% | 45.0%38.1% | 50.1%40.5% |
| 5 Year | -85.5%-89.2% | 50.0%37.8% | 73.1%54.1% |
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
7 months ago | Simply Wall St
Imagine Owning GameStop (NYSE:GME) And Trying To Stomach The 87% Share Price Drop8 months ago | Simply Wall St
Is There An Opportunity With GameStop Corp.'s (NYSE:GME) 33% Undervaluation?10 months ago | Simply Wall St
The GameStop (NYSE:GME) Share Price Is Down 76% So Some Shareholders Are Rather UpsetValuation
Is GameStop undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GME ($4.02) is trading below our estimate of fair value ($19.76)
Significantly Below Fair Value: GME is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GME is unprofitable, so we can't compare its PE Ratio to the 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 good value based on its PB Ratio (0.4x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is GameStop forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
116.2%
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 (1.7%).
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 (-2.7% per year).
High Growth Revenue: GME's revenue is forecast to decline over the next 3 years (-2.7% 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?
-59.2%
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 -59.2% 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 (5.8%).
Return on Equity
High ROE: GME has a negative Return on Equity (-122.8%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is GameStop's financial position?
Financial Position Analysis
Short Term Liabilities: GME's short term assets ($1.9B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: GME's short term assets ($1.9B) exceed its long term liabilities ($955.0M).
Debt to Equity History and Analysis
Debt Level: GME's debt to equity ratio (68%) is considered high.
Reducing Debt: GME's debt to equity ratio has increased from 17.6% to 68% over the past 5 years.
Balance Sheet
Inventory Level: GME has a high level of physical assets or inventory.
Debt Coverage by Assets: GME's debt is covered by short term assets (assets are 4.4x debt).
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 been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: GME has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is GameStop's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate GME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GME's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
0.7yrs
Average management tenure
CEO
George Sherman (57yo)
0.8yrs
Tenure
Mr. George E. Sherman serves as 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 Janu ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Senior Adviser | 0.7yrs | US$3.88m | 0.81% $2.1m | |
| Executive VP & Chief Transformation Officer | 0.8yrs | US$2.76m | 0.42% $1.1m | |
| CEO & Director | 0.8yrs | no data | 1.78% $4.7m | |
| Executive VP & CFO | 0.7yrs | no data | 0.36% $957.2k | |
| Senior VP & Chief Accounting Officer | 0.3yrs | no data | no data | |
| VP & Interim CIO | 0.8yrs | no data | no data | |
| VP of Investor Relations & Global Controller | 0yrs | no data | no data | |
| General Counsel & Corporate Secretary | 1.1yrs | no data | no data | |
| Senior Director of Corporate Communications | 0yrs | no data | no data | |
| Senior Vice President of Human Resources | 0.7yrs | no data | no data |
0.7yrs
Average Tenure
57yo
Average Age
Experienced Management: GME's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.8yrs | no data | 1.78% $4.7m | |
| Lead Independent Director | 0yrs | US$280.00k | 0.099% $263.7k | |
| Independent Director | 7.7yrs | US$280.00k | 0.12% $318.9k | |
| Independent Director | 7.6yrs | US$280.00k | 0.098% $261.0k | |
| Independent Director | 18.1yrs | US$280.00k | 0.18% $464.4k | |
| Independent Director | 14.3yrs | US$280.00k | 0.13% $345.2k | |
| Co-Founder & Executive Chairman | 9.7yrs | US$2.02m | 0.57% $1.5m | |
| Independent Director | 12.7yrs | US$280.00k | 0.091% $239.9k | |
| Independent Director | 1.5yrs | US$210.00k | 0.084% $223.0k | |
| Independent Director | 0.8yrs | no data | 0.050% $132.5k |
7.7yrs
Average Tenure
62.5yo
Average Age
Experienced Board: GME's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GME 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: 1994
- Industry: Computer and Electronics Retail
- Sector: Retail
- Market Cap: US$265.008m
- Shares outstanding: 65.92m
- Website: https://www.gamestop.com
Number of Employees
Location
- GameStop Corp.
- 625 Westport Parkway
- Grapevine
- Texas
- 76051
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GME | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Feb 2002 |
| GS2C | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Feb 2002 |
| GME * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Feb 2002 |
Biography
GameStop Corp. operates as a multichannel video game and consumer electronics retailer in the United States, Canada, Australia, and Europe. The company sells new and pre-owned video game hardware; video game software; pre-owned and value video games; video game accessories, including controllers, gaming headsets, virtual reality products, memory cards, and other add-ons for use with video game hardware and software; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards, and digitally downloadable software, as well as collectible products. It also sells collectibles comprising licensed merchandise primarily related to the video game, television, and movie industries, as well as pop culture themes; gaming-related print media, and mobile and consumer electronics; PC entertainment software in various genres comprising sports, action, strategy, adventure/role playing, and simulation; and strategy guides, magazines, and interactive game figures. In addition, the company operates e-commerce sites under the GameStop, EB Games, Micromania, and ThinkGeek brands; and collectibles stores under the Zing Pop Culture and ThinkGeek brand, as well as Game Informer, a video game magazine. Further, it operates 43 Simply Mac branded stores, which sell Apple products, including desktop computers, laptops, tablets and smart phones, and related accessories and other consumer electronic products, as well as warranty and repair services. As of April 2, 2019, the company operated 5,800 stores across 14 countries. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1994 and is headquartered in Grapevine, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:00 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/02 |
| Annual Earnings | 2019/02/02 |
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.