NYSE:GME

Stock Analysis Report

Executive Summary

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


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

0.6%

GME

2.4%

US Specialty Retail

2.4%

US Market


1 Year Return

-67.2%

GME

-25.2%

US Specialty Retail

-10.0%

US Market

Return vs Industry: GME underperformed the US Specialty Retail industry which returned -33.8% over the past year.

Return vs Market: GME underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

GMEIndustryMarket
7 Day0.6%2.4%2.4%
30 Day-11.6%-19.5%-11.0%
90 Day-41.1%-30.9%-19.4%
1 Year-67.2%-67.2%-24.0%-25.2%-8.1%-10.0%
3 Year-82.1%-85.2%1.3%-3.6%17.3%9.6%
5 Year-89.4%-92.0%2.2%-5.7%36.1%21.1%

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

Valuation

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 ($2.8) is trading below our estimate of fair value ($21.73)

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 (0.3x) compared to the US Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is GameStop forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

149.2%

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 (-3% per year).

High Growth Revenue: GME's revenue is forecast to decline over the next 3 years (-3% 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?

-61.0%

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 -61% 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 (6.9%).


Return on Equity

High ROE: GME has a negative Return on Equity (-75.94%), 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 ($1.6B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: GME's short term assets ($1.6B) exceed its long term liabilities ($970.5M).


Debt to Equity History and Analysis

Debt Level: GME's debt to equity ratio (68.7%) is considered high.

Reducing Debt: GME's debt to equity ratio has increased from 17.2% to 68.7% over the past 5 years.

Debt Coverage: GME's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GME is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is GameStop's 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 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?

0.9yrs

Average management tenure


CEO

George Sherman (57yo)

1

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

NamePositionTenureCompensationOwnership
Robert Lloyd
Senior Adviser0.83yrUS$3.88m0.83% $1.7m
Daniel Kaufman
Executive VP & Chief Transformation Officer0.92yrUS$2.76m0.43% $898.7k
George Sherman
CEO & Director1yrno data1.82% $3.8m
James Bell
Executive VP & CFO0.83yrno data0.37% $778.6k
Bernard Colpitts
Senior VP & Chief Accounting Officer0.50yrno datano data
Angela Venuk
VP & Interim CIO0.92yrno datano data
Mike Loftus
VP of Investor Relations & Global Controllerno datano datano data
Dan Reed
General Counsel & Corporate Secretary1.25yrsno datano data
Joey Mooring
Senior Director of Corporate Communicationsno datano datano data
Lisa Keglovitz
Senior Vice President of Human Resources0.83yrno datano data

0.9yrs

Average Tenure

57yo

Average Age

Experienced Management: GME's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
George Sherman
CEO & Director1yrno data1.82% $3.8m
Lawrence Zilavy
Lead Independent Directorno dataUS$280.00k0.10% $214.5k
Kathy Vrabeck
Independent Director7.83yrsUS$280.00k0.12% $259.4k
Thomas Kelly
Independent Director7.75yrsUS$280.00k0.10% $212.3k
Gerald Szczepanski
Independent Director18.25yrsUS$280.00k0.18% $377.8k
Jerome Davis
Independent Director14.5yrsUS$280.00k0.13% $280.8k
Daniel DeMatteo
Co-Founder & Executive Chairman9.83yrsUS$2.02m0.58% $1.2m
Steven Koonin
Independent Director12.83yrsUS$280.00k0.093% $195.1k
Carrie Teffner
Independent Director1.67yrsUS$210.00k0.086% $181.4k
Lizabeth Dunn
Independent Director1yrno data0.051% $107.8k

7.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: GME's board of directors are considered experienced (7.8 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$210.778m
  • Shares outstanding: 64.46m
  • 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
GS2CBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFFeb 2002
GME *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:01
End of Day Share Price2020/04/07 00:00
Earnings2020/02/01
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.