Home Sectors Consumer Cyclical Latest Valuation: GameStop Corporation (NYSE: GME)

Latest Valuation: GameStop Corporation (NYSE: GME)


GameStop Corporation trades as part of the retail apparel and specialty industry and consumer cyclical sector. GameStop Corp is an multichannel video game retailer. It sells new and pre-owned video game hardware, physical and digital video game software and accessories through GameStop, EB Games and Micromania stores.

Previous Intraday Trading Performance:

The GME stock showed a previous change of -2.60% with an open at 10.37 and a close of 10.10. It reached an intraday high of 10.41 and a low of 10.09.

SeekingAlpha:  GameStop Corp. (GME) Management on Q4 2018 Results – Earnings Call Transcript


The stock has a market cap of $1.0b with 102.0m shares outstanding, of which the float is 98.1m shares. Trading volume reached 8,258,308 shares compared to its average volume of 3,324,730 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, GameStop Corporation shares returned -1.85% and in the past 30 trading days it returned -6.76%. Over three months, it changed -20.10%. In one year it has changed -11.97% and within that year its 52-week high was 17.27 and its 52-week low was 10.04. GME stock is 0.60% above its 52 Week Low.

Our calculations show a 200 day moving average of 13.17 and a 50 day moving average of 11.30. Currently GME stock is trading -23.33% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  GameStop Corp. (GME) Management on Q4 2018 Results – Earnings Call Transcript


The last annual fiscal EPS for the company was reported at 0.34 that ended on 31st of January 2018, which according to the previous close, that is a PE of 29.71. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.35. The TTM EPS is 3.09, which comes to a TTM PE of 3.27.

The following are the last four quarter reported earnings per share:
01-31-2019:  1.59 (estimated)
10-31-2018:  0.67
07-31-2018:  0.05
04-30-2018:  0.38

The dividend per share is currently 1.52, which is a dividend yield of 15.05%. Also, the payout ratio is 49.19%, therefore the dividend is safe according to our calculations. GME stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 17.01, which means it is possibly undervalued and has a margin of safety of 40.62%

Indicators to Watch:

Based on the latest filings, there is 184.40% of institutional ownership. Short-interest is 38,523,726, which is 37.78% of shares outstanding. The short-interest ratio or days-to-cover ratio is 12.72. This stock has a high level of short interest and may fall in value in the near term.

The current calculated beta is 0.66

SeekingAlpha:  Russell 2000 Is On The Fence, Look For Volatility Expansion

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -30.95%, return on assets is -11.83%, profit margin is -8.57%, price-to-sales is 0.19 and price-to-book is 0.68.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 0  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.