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GameStop
(NYSE:GME)
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Rating:71Outperform
Price Target:
$24.00
▲(25.26% Upside)
Action:Reiterated
Date:08/03/26
The score is primarily supported by improved financial performance, especially strong profitability and free cash flow. Offsetting factors include mixed technical positioning (below key moving averages) and balance-sheet risk from elevated leverage, while valuation appears reasonable and recent corporate actions are broadly supportive but add execution/dilution risk tied to major strategic moves.
Positive Factors
Free Cash Flow Strength
Sustained high free cash flow and near‑complete conversion of earnings into cash give GameStop durable internal funding for operations, buybacks, or acquisitions. This reduces reliance on external financing, supports capital allocation flexibility, and underpins balance‑sheet resilience over months.
Negative Factors
Elevated Leverage
Despite recent actions, absolute debt remains sizable relative to equity and historical levels, limiting flexibility if revenue or margins soften. Elevated leverage increases refinancing and covenant risk in adverse conditions and constrains the company's capacity to absorb shocks or fund large strategic moves without dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained high free cash flow and near‑complete conversion of earnings into cash give GameStop durable internal funding for operations, buybacks, or acquisitions. This reduces reliance on external financing, supports capital allocation flexibility, and underpins balance‑sheet resilience over months.
Read all positive factors
GameStop Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth or face challenges, essential for assessing GameStop's strategic direction and market positioning.
Analyzes revenue from different business segments, highlighting which areas drive growth or face challenges, essential for assessing GameStop's strategic direction and market positioning.
Data provided by:
The Fly
The FlyGameStop (GME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.37B
Dividend YieldN/A
Average Volume (3M)3.95M
Price to Earnings (P/E)10.8
Beta (1Y)0.19
Revenue Growth1.61%
EPS Growth260.81%
CountryUS
Employees4,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.70
Shares Outstanding448,691,250
10 Day Avg. Volume3,064,541
30 Day Avg. Volume3,951,471
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.96
Price to Sales (P/S)2.94
P/FCF Ratio17.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.09
Revenue Forecast (FY)$4.28B
GameStop Business Overview & Revenue Model
Company Description
GameStop Corp. operates as a prominent specialty retailer, providing a diverse array of gaming and entertainment products to customers across the United States, Canada, Australia, and Europe, both through its online platforms and physical store lo...
How the Company Makes Money
GameStop primarily generates revenue by selling products related to video gaming and pop-culture merchandise through physical stores and online channels. Key revenue streams include: (1) Video game hardware sales (e.g., consoles, controllers, and ...
GameStop Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.73B | 3.63B | 3.82B | 5.27B | 5.93B | 6.01B |
| Gross Profit | 1.28B | 1.18B | 1.11B | 1.29B | 1.37B | 1.35B |
| EBITDA | 718.10M | 403.50M | 22.40M | 26.50M | -247.20M | -284.60M |
| Net Income | 763.20M | 418.40M | 131.30M | 6.70M | -313.10M | -381.30M |
Balance Sheet | ||||||
| Total Assets | 10.97B | 10.45B | 5.88B | 2.71B | 3.11B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 8.37B | 9.01B | 4.77B | 1.20B | 1.39B | 1.27B |
| Total Debt | 4.34B | 4.36B | 410.70M | 602.80M | 616.60M | 649.00M |
| Total Liabilities | 5.13B | 5.01B | 945.60M | 1.37B | 1.79B | 1.90B |
| Stockholders Equity | 5.84B | 5.44B | 4.93B | 1.34B | 1.32B | 1.60B |
Cash Flow | ||||||
| Free Cash Flow | 740.80M | 597.30M | 129.60M | -238.60M | 52.30M | -496.30M |
| Operating Cash Flow | 759.90M | 614.80M | 145.70M | -203.70M | 108.20M | -434.30M |
| Investing Cash Flow | -2.44B | -3.23B | 265.10M | -33.20M | -222.70M | -64.80M |
| Financing Cash Flow | 2.67B | 4.15B | 3.44B | -11.60M | -7.90M | 1.20B |
GameStop Technical Analysis
Negative
19.16
Price Trends
21.20
Negative
22.25
Negative
22.42
Negative
Market Momentum
-0.89
Positive
27.27
Positive
14.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GME, the sentiment is Negative. The current price of 19.16 is below the 20-day moving average (MA) of 20.12, below the 50-day MA of 21.20, and below the 200-day MA of 22.42, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 27.27 is Positive, neither overbought nor oversold. The STOCH value of 14.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GME.
GameStop Risk Analysis
GameStop disclosed 60 risk factors in its most recent earnings report. GameStop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GameStop Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.83T | 20.74 | 30.50% | ― | 15.77% | 88.63% | |
72 Outperform | $45.90B | 20.43 | 48.28% | 1.10% | 15.18% | 7.28% | |
71 Outperform | $8.37B | 10.82 | 14.03% | ― | 1.61% | 260.81% | |
69 Neutral | $18.21B | 15.79 | 40.05% | 4.47% | 0.99% | 31.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $293.10B | 18.47 | 10.00% | 0.94% | 4.44% | -16.38% | |
42 Neutral | $392.20M | 83.50 | 3.58% | ― | ― | ― |
* Consumer Cyclical Sector Average
GME
GameStop
18.40
-4.71
-20.38%
AMZN
Amazon
261.31
29.82
12.88%
BBY
Best Buy Co
85.44
17.43
25.64%
NEGG
Newegg Commerce
18.92
-88.20
-82.34%
EBAY
eBay
100.94
3.17
3.24%
BABA
Alibaba
124.71
4.39
3.65%
GameStop Corporate Events
Business Operations and StrategyPrivate Placements and Financing
GameStop to Exchange Convertible Notes for Equity Shares
Positive
Aug 3, 2026
On August 2, 2026, GameStop entered into privately negotiated agreements with certain institutional holders of its 0.00% convertible senior notes due 2030 and 2032 to exchange about $1.4 billion of these notes for shares of Class A common stock. T...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
GameStop Shareholders Approve Expansion of Authorized Common Stock
Positive
Jul 8, 2026
On July 7, 2026, GameStop stockholders approved all proposals at the 2026 Annual Meeting, including an amendment to the certificate of incorporation that raises authorized Class A common shares to 2.5 billion. The move, backed by 68.7% of votes ca...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
GameStop Issues 2027 Outlook, Highlights eBay Acquisition Plans
Positive
Jun 26, 2026
On June 26, 2026, GameStop provided an outlook for its fiscal year ending Jan. 30, 2027, projecting adjusted EBITDA of more than $600 million, a sharp increase from $345.4 million in fiscal 2025. The company framed adjusted EBITDA as a key nonR...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
GameStop Withdraws CEO Award to Focus on eBay Deal
Positive
Jun 23, 2026
On June 23, 2026, GameStop announced that its board granted Chairman and CEO Ryan Cohen’s request to withdraw a proposed CEO performance award from the company’s proxy statement, a plan originally approved in January 2026. Cohen said t...
Stock BuybackFinancial Disclosures
GameStop Posts Record Q1 Profit and New Buyback Plan
Positive
Jun 2, 2026
GameStop reported first-quarter 2026 results on June 2, 2026, posting the highest quarterly net income in its history at $389.6 million and record first-quarter operating income of $143.3 million, as net sales rose 14% year over year to $835.3 mil...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
GameStop Proposes Transformative All-Stock-and-Cash Takeover of eBay
Positive
May 4, 2026
On May 3, 2026, GameStop disclosed that it had built a 5% economic stake in eBay and proposed acquiring all of eBay’s common stock for $125 per share, paid half in cash and half in GameStop stock, valuing the target at about $55.5 billion an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.