Home Sectors Consumer Cyclical Current Fundamentals: GameStop Corporation (NYSE: GME)

Current Fundamentals: GameStop Corporation (NYSE: GME)


GameStop Corporation is in the consumer cyclical sector and retail apparel and specialty industry. 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 4.69% with an open at 7.58 and a close of 7.82. It reached an intraday high of 7.85 and a low of 7.52.

SeekingAlpha:  GameStop Corp. (GME) CEO George Sherman on Q1 2019 Results – Earnings Call Transcript


The stock has a market cap of $799.7m with 102.3m shares outstanding, of which the float is 97.2m shares. Trading volume reached 7,848,683 shares compared to its average volume of 3,301,046 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 3.30% and in the past 30 trading days it returned -12.04%. Over three months, it changed -30.12%. In one year it has changed -38.64% and within that year its 52-week high was 17.27 and its 52-week low was 7.32. GME stock is 6.83% above its 52 Week Low.

Our calculations show a 200 day moving average of 12.11 and a 50 day moving average of 8.90. Currently GME stock is trading -35.43% 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) CEO George Sherman on Q1 2019 Results – Earnings Call Transcript


The last annual fiscal EPS for the company was reported at -6.57 that ended on 31st of January 2019. 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 2.53.

Below was the last reported quarterly diluted earnings per share:

Jan19 (Reported on 06/04/2019): -1.84
Oct18 (Reported on 04/02/2019): -4.78
Jul18 (Reported on 11/29/2018): -0.24
Apr18 (Reported on 09/06/2018): 0.28
Jan18 (Reported on 05/31/2018): -1.04

The dividend per share is currently 1.52, which is a dividend yield of 19.44%. 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 11.55, which means it is possibly undervalued and has a margin of safety of 32.31%.

Indicators to Watch:

Short-interest was 41,267,606, which was 40.35% of shares outstanding. The short-interest ratio or days-to-cover ratio was 8.04. This stock has a high level of short interest and may fall in value in the near term.

The current calculated beta is 0.65.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -39.85%, return on assets is -15.49%, profit margin is -10.84%, price-to-sales is 0.12 and price-to-book is 0.57.

Company Scores:

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

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.