GameStop (GME) Stock Analysis
Here is a fundamental analysis of GameStop (GME), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: GME | Industry group median |
|---|---|---|
| 1-Year Return | -1.67% | 4.16% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: GME | Industry group median |
|---|---|---|
| 1-Year Volatility | 36.51% | 47.42% |
| Beta | 1.75 | 1.12 |
Company Profile
| Profile Item | GME |
|---|---|
| Name | Gamestop Corp. |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail |
| GICS Industry | Specialty Retail |
| GICS Sub-Industry | Computer & Electronics Retail |
| Market Capitalization | 9.77 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | February 13, 2002 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
GameStop (GME) trades at P/E ratio of 16.25, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
GME
Consumer Discretionary Distribution & Retail industry group
16.25
Group distribution
- Max
- 54.29
- Q3
- 31.64
- Median
- 20.61
- GME
- 16.25
- Q1
- 12.78
- Min
- 1.13
Largest peers
- TJX
- 32.76
- AMZN
- 31.64
- HD
- 23.31
- LOW
- 18.66
- BABA
- 17.36
- GME
- 16.25
- PDD
- 8.55
Price-to-Sales Ratio (TTM)
GameStop (GME) trades at 2.62 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
GME
Consumer Discretionary Distribution & Retail industry group
2.62
Group distribution
- Max
- 3.65
- GME
- 2.62
- Q3
- 1.78
- Median
- 0.73
- Q1
- 0.28
- Min
- 0.03
Largest peers
- AMZN
- 3.45
- TJX
- 3.02
- GME
- 2.62
- HD
- 1.97
- LOW
- 1.40
- BABA
- 0.26
- PDD
- 0.26
Price-to-Book Ratio (MRQ)
GameStop (GME) trades at 1.79 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
GME
Consumer Discretionary Distribution & Retail industry group
1.79
Group distribution
- Max
- 11.07
- Q3
- 5.11
- Median
- 2.24
- GME
- 1.79
- Q1
- 1.05
- Min
- -3.64
Largest peers
- HD
- 23.60
- TJX
- 18.30
- AMZN
- 5.81
- PDD
- 1.83
- GME
- 1.79
- BABA
- 1.67
- LOW
- -13.36
Valuation at a Glance
| Metric | Current stock: GME | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.25 | 20.61 |
| Price-to-Sales Ratio (TTM) | 2.62 | 0.73 |
| Price-to-Book Ratio (MRQ) | 1.79 | 2.24 |
| Free Cash Flow Yield | -12.91% | 3.39% |
Profitability
Return on Equity (TTM)
GameStop (GME) posts ROE of 14.10%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
GME
Consumer Discretionary Distribution & Retail industry group
14.10%
Group distribution
- Max
- 63.82%
- Q3
- 31.67%
- GME
- 14.10%
- Median
- 12.96%
- Q1
- 4.89%
- Min
- -29.94%
Largest peers
- HD
- 128.38%
- TJX
- 61.25%
- PDD
- 25.40%
- AMZN
- 24.29%
- GME
- 14.10%
- BABA
- 9.22%
- LOW
- --
Net Profit Margin (TTM)
GameStop (GME) keeps 20.45% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
GME
Consumer Discretionary Distribution & Retail industry group
20.45%
Group distribution
- GME
- 20.45%
- Max
- 20.45%
- Q3
- 8.75%
- Median
- 3.25%
- Q1
- 0.49%
- Min
- -11.15%
Largest peers
- PDD
- 21.62%
- GME
- 20.45%
- AMZN
- 12.22%
- BABA
- 10.12%
- TJX
- 9.40%
- HD
- 8.41%
- LOW
- 7.51%
Operating Profit Margin (TTM)
GameStop (GME) turns 16.61% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
GME
Consumer Discretionary Distribution & Retail industry group
16.61%
Group distribution
- Max
- 23.15%
- GME
- 16.61%
- Q3
- 11.08%
- Median
- 4.61%
- Q1
- 1.68%
- Min
- -8.71%
Largest peers
- PDD
- 18.42%
- GME
- 16.61%
- AMZN
- 13.14%
- HD
- 11.93%
- TJX
- 11.77%
- LOW
- 11.07%
- BABA
- 1.02%
Profitability at a Glance
| Metric | Current stock: GME | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 14.10% | 12.96% |
| Return on Assets (TTM) | 2.70% | 5.45% |
| Net Profit Margin (TTM) | 20.45% | 3.25% |
| Operating Profit Margin (TTM) | 16.61% | 4.61% |
| Gross Profit Margin (TTM) | 34.39% | 38.72% |
Financial Strength
Current Ratio (MRQ)
GameStop (GME) has current ratio of 12.40, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
GME
Consumer Discretionary Distribution & Retail industry group
12.40
Group distribution
- GME
- 12.40
- Max
- 2.97
- Q3
- 1.87
- Median
- 1.38
- Q1
- 1.03
- Min
- 0.46
Largest peers
- GME
- 12.40
- PDD
- 2.54
- BABA
- 1.28
- AMZN
- 1.18
- TJX
- 1.14
- LOW
- 1.09
- HD
- 1.05
Debt-to-Equity Ratio (MRQ)
GameStop (GME) has debt-to-equity ratio of 0.74, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
GME
Consumer Discretionary Distribution & Retail industry group
0.74
Group distribution
- Max
- 3.27
- Q3
- 1.82
- Median
- 1.09
- GME
- 0.74
- Q1
- 0.67
- Min
- 0.01
Largest peers
- HD
- 4.59
- TJX
- 1.36
- GME
- 0.74
- AMZN
- 0.53
- BABA
- 0.25
- PDD
- 0.01
- LOW
- --
Financial Strength at a Glance
| Metric | Current stock: GME | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 12.40 | 1.38 |
| Debt-to-Equity Ratio (MRQ) | 0.74 | 1.09 |
| Net Debt / EBITDA | -9.77 | 2.42 |
Dividends
Dividend Yield (TTM)
GameStop (GME) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
GME
Consumer Discretionary Distribution & Retail industry group
0.00%
Group distribution
- Max
- 6.62%
- Q3
- 2.66%
- GME
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 2.84%
- LOW
- 2.26%
- TJX
- 1.14%
- BABA
- 0.93%
- GME
- 0.00%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Payout Ratio (TTM)
GameStop (GME) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
GME
Consumer Discretionary Distribution & Retail industry group
0.00%
Group distribution
- Max
- 78.51%
- Q3
- 33.46%
- GME
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 65.55%
- LOW
- 40.57%
- TJX
- 33.07%
- BABA
- 17.12%
- GME
- 0.00%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividends at a Glance
| Metric | Current stock: GME | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |