GMEGME
US • —
$22.08
P/E
16.82
PEG
0.09
FCF Yield
—
Rev Growth YoY
+1.6% YoY
Gross Margin
34.4%
Health Score
6/10
D/E Ratio
0.76
Confidence
MEDIUM
Business Snapshot
GameStop operates a global network of retail stores and e-commerce platforms focused on video games, collectibles, and consumer electronics. The company primarily generates revenue through the sale of new and pre-owned video game hardware, software, and accessories, alongside a growing presence in digital collectibles via its NFT marketplace. It operates in the highly competitive video game retail sector, facing pressure from digital distribution models and large-format retailers. With no market capitalisation figure available, the company's financial scale cannot be definitively tiered from the provided data, but its revenue trajectory remains modest. A defining characteristic is a strong and often vocal retail shareholder base that has created significant volatility disconnected from underlying business fundamentals.
Financial Health
Gross margin stands at 34.4%, though no prior-year comparison is available to assess direction. Net margin of 20.4% is relatively strong, indicating efficient conversion of revenue into profit at the bottom line...
Risk Assessment
- VALUATION DIVERGENCE — The PEG ratio of 0.09x is based on a 184.5% earnings growth rate that is likely unsustainable given only 1.6% revenue growth, creating a potential earnings quality risk.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — While the company beat estimates in all 4 recent quarters, the 184.5% earnings growth versus 1.6% revenue growth raises questions about the sustainability of margin expansion.
- REVENUE DECELERATION — Revenue growth of just 1.6% YoY signals a largely stagnant top line, limiting the company's ability to drive long-term intrinsic value through sales growth....
Gross margin stands at 34.4%, though no prior-year comparison is available to assess direction. Net margin of 20.4% is relatively strong, indicating efficient conversion of revenue into profit at the bottom line. The balance sheet appears healthy, with a debt-to-equity ratio of 0.76x and an exceptionally high current ratio of 15.3x, suggesting ample short-term liquidity and minimal leverage. Return on equity is 14.0%, reflecting solid profitability on shareholder equity. Free cash flow and FCF yield are not available in the data payload, preventing a full assessment of cash generation. Overall, the company benefits from low debt and strong liquidity, but the lack of free cash flow data leaves uncertainty around its ability to fund reinvestment or capital returns without relying on external financing.
- VALUATION DIVERGENCE — The PEG ratio of 0.09x is based on a 184.5% earnings growth rate that is likely unsustainable given only 1.6% revenue growth, creating a potential earnings quality risk. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — While the company beat estimates in all 4 recent quarters, the 184.5% earnings growth versus 1.6% revenue growth raises questions about the sustainability of margin expansion. - REVENUE DECELERATION — Revenue growth of just 1.6% YoY signals a largely stagnant top line, limiting the company's ability to drive long-term intrinsic value through sales growth.
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