GMENEUTRAL

Return on Equity (ROE)

14.1%

Higher than 63% of Consumer Cyclical sector peers

Updated 94h ago

Sector Performance

63th percentile

GME

14.1%

Sector Median

8.7%

Sector Avg

-37.7%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity – a 14.1% ROE means GameStop earns $0.141 for every $1 of equity.

This exceeds the sector median of 8.7%, placing GameStop in the 63rd percentile among Consumer Cyclical peers, meaning it outperforms over half of its competitors. The year-over-year change is not available, but the quarter-over-quarter change is +83.1%, showing a sharp increase from the prior quarter's 7.7% ROE. The combination of a ROE above the sector median and a large recent jump suggests improving profitability, which can be an opportunity for investors who see the trend continuing, but also introduces risk if the spike proves temporary. This metric supports the overall NEUTRAL verdict because while the current ROE is above peers and improving, the limited historical data and extreme quarterly swing warrant caution rather than a strong bullish or bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about GME?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does GME's Return on Equity (ROE) compare to its sector?

GME's Return on Equity (ROE) of 14.1% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 63th percentile.

Who are GME's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.