GameStop Corp.GME
NYSE • Consumer Cyclical
$22.27
P/E
23.94
PEG
—
FCF Yield
—
Rev Growth YoY
-13.9% YoY
Gross Margin
35.0%
Health Score
7/10
D/E Ratio
0.80
Confidence
—
Business Snapshot
GameStop Corp. is a specialty retailer focused on video games, collectibles, and consumer electronics, generating the majority of its revenue through physical store sales and e-commerce. It operates in the highly competitive specialty retail market, facing structural headwinds as the industry shifts toward digital game downloads. With TTM revenue of $3.63 billion, the company operates at a mid-cap scale while retaining a strong brand presence and a large store base. A defining characteristic is its ability to generate substantial positive free cash flow despite declining sales, largely due to aggressive cost management and a lean inventory position.
Financial Health
Gross margin improved to 35.0% from 33.3% in the prior year, while net margin stands at 11.5%, indicating operating efficiency. The balance sheet is conservative, with a debt/equity ratio of 0.8x and a current ratio of 15.3x, providing ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 23.94x is near the sector average of 24x, but the FMP DCF fair value of $3.81 suggests a 484% premium to current price, and EV/EBITDA of 108.54x signals extreme earnings valuation.
- REVENUE DECLINATION — Revenue fell 13.9% year-over-year, indicating a shrinking top line and structural...