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GameStop (GME) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Specialty Retail
A
ExcellentMetricSide Score: 86/100
ProfitabilityProfit25/30
GrowthGrowth20/25
Balance SheetBalance23/25
Cash QualityCash18/20
Price & Volume
Market Cap $10.23B

GameStop Corp., a specialty retailer, provides games, collectibles, and entertainment products through its stores and e-commerce platforms in United States, Australia and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and other peripheral devices; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts. The company operates stores and e-commerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is based in Grapevine, Texas.

Moat Signals

Competitive analysis based on 62 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging 4.9%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Moderate Moat

ROE is positive at ~5.6% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Weak Moat

Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.

Risk Signals

Data-driven red flags and warnings across 62 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Healthy

FCF covers net income by 1.9x on average — earnings are well-supported by cash generation.

Leverage Risk

Watch

Debt-to-equity has risen 140.2% recently — increasing financial risk even if the current ratio is manageable.

Revenue Decline

Red Flag

Revenue declined in 5 of the last 7 quarters — persistent contraction signals a fundamental problem.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Red Flag

Shares outstanding increased 16.0% — significant dilution, likely from stock compensation or capital raises.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$3.73B
1.6%
Q. Revenue
$835.30M
TTM EBITDA
$428.50M
345.0%
TTM Op. Income
$386.20M
2739.7%
Q. Op. Income
$143.30M
TTM Net Income
$763.20M
266.2%
Q. Net Income
$389.60M
EPS
$0.87
Shares Out.
$448.40M
0.3%
$3.73B in TTM revenue grew 1.6% YoY, reaching $835.30M last quarter. TTM EBITDA of $428.50M and TTM operating income of $386.20M shows growth is flowing through. Net income of $763.20M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
40.7%
18.0%
EBITDA Margin
17.7%
Op. Margin
17.2%
1263.4%
Net Margin
46.6%
662.5%
Op. margin of 17.2% is up 18.6% YoY — cost efficiency is improving. Net margin at 46.6% and gross margin of 40.7% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
13.4x
P/S Ratio
2.7x
P/B Ratio
1.8x
At 13.4x P/E, the stock trades below market averages — potentially undervalued. P/S of 2.7x and P/B of 1.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$10.97B
Cash
$7.40B
Long-Term Debt
$4.17B
Book Value
$5.84B
D/E Ratio
0.7
Debt/EBITDA
28.2
With $10.97B in assets and $4.17B in long-term debt, the D/E of 0.7and book value of $5.84B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$337.40M
Free Cash Flow
$332.90M
75.6%
FCF Margin
8.9%
FCF / Net Income
0.9
FCF of $332.90M on $337.40M in operating cash flow. The FCF / Net Income ratio of 0.4x indicates partial cash conversion — earnings quality needs attention.

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