Company Analysis
GameStop Corp
GME • Retail
AI Summary
GameStop's recent earnings have demonstrated substantial growth, with an EPS increase of 180% year-over-year, highlighting its potential to capitalize on evolving consumer interests in gaming and collectibles. Despite trading at a premium with a P/E ratio of 23.2 compared to its fair value, the company's strong management and earnings power support the case for growth-oriented investors willing to accept some overvaluation. However, the current valuation exceeds fair value by approximately 53%, suggesting cautious positioning is advisable.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
GameStop Corp
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GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
These investments were once popular but have lost favor due to changing market dynamics or industry trends. While potentially undervalued, they come with increased risk. Investors may explore them for potential rebounds, but careful evaluation of underlying challenges is essential to avoid continued decline.
Earnings History
Last beatActual EPS compared with analyst estimates.
| Fiscal Quarter | Actual | Estimate | Surprise |
|---|---|---|---|
|
Q4 2026
Mar 31, 2026
|
$0.49 | $0.37 | +31.1% |
|
Q3 2026
Dec 31, 2025
|
$0.24 | $0.20 | +18.8% |
|
Q2 2026
Sep 30, 2025
|
$0.25 | $0.16 | +58.1% |
|
Q1 2026
Jun 30, 2025
|
$0.17 | $0.04 | +320.8% |
|
Q4 2025
Mar 31, 2025
|
$0.30 | $0.08 | +271.3% |
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Financial Ratios
AI Financial Ratios Summary
The company's Earnings Per Share (EPS) of 0.74 indicates moderate profitability on a per-share basis, while a Price/Earnings (P/E) ratio of 23.24 suggests that investors are willing to pay a premium for future growth expectations. The Return on Equity (ROE) of 8.0% reflects a modest efficiency in generating profit from shareholder investments, but the negative interest coverage ratio of -30.63 signals significant challenges in meeting interest obligations, potentially implying high debt levels or operational difficulties. Coupled with a debt-to-equity ratio of 0.76 and an exceptionally high quick ratio of 14.63, the company's liquidity position appears strong, yet the negative interest coverage raises concerns about financial stability. These interrelated factors suggest the company might face risks that could limit its growth potential unless operational or financial restructuring occurs, thereby impacting the stock's ability to reach its full valuation potential.
- $0.74
- 23.24
- 8.0%
- 0.76%
- -30.63
- $908 K
- 14.63%
- $9.73 B
Operational Ratios
AI Operational Ratios Summary
The company's operating margin of 6.39% and gross margin of 32.95% suggest moderate operational efficiency, indicating that while it retains a reasonable portion of revenue as profit, there is room for improvement in managing operating expenses. The net profit margin of 11.53% reflects solid profitability after all expenses, while the return on assets at 4.32% demonstrates effective asset utilization. The high CAGR in capital expenditures (53.87%) signals ongoing investments in growth, which, combined with steady free cash flow growth (3.26%), bodes well for future expansion prospects, though the absence of dividends may suggest reinvestment focus rather than immediate shareholder returns.
- 6.39%
- 32.95%
- 11.53%
- 4.32%
- $0.0
- 0.0%
- 3.26%
- 53.87%
Valuation Ratios
AI Valuation Ratios Summary
The company's low PEG ratio of 0.13 suggests it may be undervalued relative to its growth prospects, while the negative Price to SAP 500 indicates potential undervaluation compared to the broader market over the past year. Additionally, strong cash per share and a solid book value per share imply financial stability and asset backing, making the stock a potentially attractive investment opportunity for value-focused investors.
- $35.8
- $19.9
- $0.44
- -65.02%
- 0.13
- $23.1
- $12.1
- 20.1