GameStop (GME) AI Stock Analysis

• Market Cap: $11.43B
• Dividend Yield: N/A
• Average Volume (3M): 8.38M
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.59
• Revenue Growth: -15.48%
• EPS Growth: 528.37%
• Country: US
• Employees: 6,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.25
• Shares Outstanding: 447,666,470
• 10 Day Avg. Volume: 14,248,576
• 30 Day Avg. Volume: 8,380,957
• PEG Ratio: 0.06
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 81.80
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 6.74
• Enterprise Value/Ebitda: 45.90
• 1Y Price Target: $13.50
• Price Target Upside: -48.28% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $26.00 ▼(-0.38% Downside)

GameStop's overall score is driven by its positive financial performance and technical indicators, which suggest a stable short-term outlook. However, the high P/E ratio and lack of dividend yield present valuation concerns. The absence of earnings call data and corporate events limits further insights into strategic direction.

Positive Factors

Improved Profitability

Improved return on equity indicates enhanced profitability and effective use of shareholder funds, which can support sustainable growth.

Strong Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling GameStop to invest in strategic initiatives and manage debt effectively.

E-commerce Expansion

Expanding e-commerce capabilities aligns with consumer trends towards online shopping, potentially increasing market reach and revenue.

Negative Factors

Revenue Decline

A significant decline in revenue growth suggests challenges in maintaining sales momentum, which could impact long-term financial health.

Low Operational Efficiency

Low EBIT margin indicates inefficiencies in operations, which could hinder profitability and require strategic improvements to enhance margins.

Moderate Leverage Risk

Moderate leverage presents financial risk, potentially limiting the company's ability to navigate economic downturns or invest in growth opportunities.

GameStop Business Overview & Revenue Model

Company Description

GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising licensed merchandise primarily related to the gaming, television, and movie industries, as well as pop culture themes. As of January 29, 2022, the company operated 4,573 stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and 50 pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer, a print and digital video game publication featuring reviews of new releases, previews of the big titles on the horizon, and coverage of the latest developments in the gaming industry. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.

How the Company Makes Money

GameStop generates revenue primarily through the sale of video games, consoles, and accessories. Its key revenue streams include new game sales, pre-owned game sales, and hardware sales, which encompass the latest gaming consoles from major manufacturers such as Sony, Microsoft, and Nintendo. Additionally, GameStop earns income from its digital sales, including downloadable content and subscriptions to gaming services. The company has also explored partnerships with gaming developers and publishers to enhance its product offerings and engage with customers. In recent years, GameStop has been focusing on improving its e-commerce capabilities, which has become an increasingly significant part of its revenue model, especially as consumer preferences shift towards online shopping.

GameStop Financial Statement Overview

Summary

GameStop demonstrates a positive financial trajectory with improved profitability and cash flow metrics. Revenue and profit margins are on the rise, but operational efficiency and leverage management remain areas for potential improvement.

Income Statement

GameStop's income statement shows a positive trajectory with a TTM revenue growth rate of 4.73% and improved gross and net profit margins. The gross profit margin increased to 30.06% in TTM, indicating better cost management. However, the EBIT margin remains low at 2.10%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.85 in TTM. The return on equity improved to 7.28%, showing better profitability. However, the equity ratio indicates moderate leverage, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 11.02% in TTM, indicating robust cash generation. The operating cash flow to net income ratio is 0.60, suggesting efficient cash conversion. The free cash flow to net income ratio is high at 0.97, reflecting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.85B	3.82B	5.27B	5.93B	6.01B	5.09B
Gross Profit	1.16B	1.11B	1.29B	1.37B	1.35B	1.26B
EBITDA	169.90M	22.40M	26.50M	-247.20M	-284.60M	-174.00M
Net Income	360.00M	131.30M	6.70M	-313.10M	-381.30M	-215.30M
Balance Sheet
Total Assets	10.34B	5.88B	2.71B	3.11B	3.50B	2.47B
Cash, Cash Equivalents and Short-Term Investments	8.69B	4.77B	1.20B	1.39B	1.27B	508.50M
Total Debt	4.42B	410.70M	602.80M	616.60M	649.00M	1.05B
Total Liabilities	5.16B	945.60M	1.37B	1.79B	1.90B	2.04B
Stockholders Equity	5.18B	4.93B	1.34B	1.32B	1.60B	436.70M
Cash Flow
Free Cash Flow	481.70M	129.60M	-238.60M	52.30M	-496.30M	63.70M
Operating Cash Flow	496.80M	145.70M	-203.70M	108.20M	-434.30M	123.70M
Investing Cash Flow	-519.10M	265.10M	-33.20M	-222.70M	-64.80M	36.90M
Financing Cash Flow	4.55B	3.44B	-11.60M	-7.90M	1.20B	-55.40M

GameStop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GME, the sentiment is Positive. The current price of 26.1 is above the 20-day moving average (MA) of 23.55, above the 50-day MA of 23.26, and above the 200-day MA of 25.96, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 93.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GME.

GameStop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBY	70 Outperform	15.66B	20.40	28.65%	5.09%	-2.21%	-37.30%
MUSA	70 Outperform	7.68B	16.54	75.92%	0.50%	-7.95%	-2.60%
GME	64 Neutral	$11.43B	34.90	7.58%	―	-15.48%	528.37%
BBWI	63 Neutral	5.31B	7.74	-47.03%	3.11%	-0.18%	-18.95%
ETSY	59 Neutral	6.01B	48.48	-14.58%	―	2.38%	-38.88%
AAP	54 Neutral	3.76B	-9.80	-15.47%	1.60%	-22.50%	-35219.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

GameStop Corporate Events

GameStop Announces Warrant Dividend Distribution

On September 9, 2025, GameStop Corp. announced a warrant dividend distribution to its Class A common stockholders, with warrants distributed on October 7, 2025. This move is part of GameStop’s strategic financial maneuvers, potentially impacting its market position and offering stakeholders new investment opportunities. Additionally, GameStop reported strong financial results for the second quarter of 2025, with net sales of $972.2 million, a significant increase from the previous year. The company also achieved a net income of $168.6 million, showcasing improved operational efficiency and financial health.

The most recent analyst rating on (GME) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.