Gamestop Beneish M Score

GME
 Stock
  

USD 40.02  0.35  0.87%   

This module uses fundamental data of Gamestop Corp to approximate the value of its Beneish M Score. Gamestop Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Gamestop Corp Piotroski F Score and Gamestop Corp Altman Z Score analysis.
  
Gamestop Corp Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.025273. The current year Interest Coverage is expected to grow to 37.36. The current year Calculated Tax Rate is expected to grow to 32.76
At this time, it appears that Gamestop Corp is a possible manipulator. The earnings manipulation may begin if Gamestop Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Gamestop Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Gamestop Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-0.08
Beneish M Score - Possible Manipulator
Elasticity of Receivables0.71Focus
Asset Quality6.19Focus
Expense Coverage0.85Focus
Gross Margin Strengs1.25Focus
Accruals Factor0.85Focus
Depreciation Resistance0.57Focus
Net Sales Growth1.34Focus
Financial Leverage Condition0.9Focus

Gamestop Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Gamestop Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues8.1 BB
Significantly Up
Decreasing
Slightly volatile
Selling General and Administrative ExpenseB1.7 B
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations24.3 M(434.3 M)
Way Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion123 M77.2 M
Way Up
Decreasing
Slightly volatile
Total Assets4.1 B3.5 B
Fairly Up
Decreasing
Slightly volatile
Investments16.8 M15.4 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current16.8 M15.4 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net633.9 M750.2 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables134 M141.1 M
Notably Down
Increasing
Slightly volatile
Total Liabilities2.1 B1.9 B
Moderately Up
Increasing
Slightly volatile
Current Assets2.5 B2.6 B
Notably Down
Increasing
Slightly volatile
Assets Non Current1.6 B900.5 M
Way Up
Decreasing
Slightly volatile
Current Liabilities1.6 B1.4 B
Fairly Up
Decreasing
Slightly volatile
Liabilities Non Current568.9 M542.1 M
Sufficiently Up
Increasing
Slightly volatile
Total Debt528.8 M649 M
Significantly Down
Increasing
Slightly volatile
Debt Current115.7 M214.8 M
Way Down
Increasing
Slightly volatile
Debt Non Current413.1 M434.2 M
Notably Down
Increasing
Slightly volatile
Operating Income131.5 M(368.5 M)
Way Up
Decreasing
Slightly volatile
Gross Margin0.280.224
Significantly Up
Decreasing
Slightly volatile

Gamestop Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Gamestop Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Gamestop Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Gamestop Corp's degree of accounting gimmicks and manipulations.

About Gamestop Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

2.04 Billion

Gamestop Corp Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 1.72 Billion

About Gamestop Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Gamestop Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Gamestop Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Gamestop Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas. Gamestop Corp operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 12000 people.

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Please check Gamestop Corp Piotroski F Score and Gamestop Corp Altman Z Score analysis. Note that the Gamestop Corp information on this page should be used as a complementary analysis to other Gamestop Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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Is Gamestop Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Gamestop Corp. If investors know Gamestop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gamestop Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.69
Market Capitalization
13.2 B
Quarterly Revenue Growth YOY
0.08
Return On Assets
-0.0921
Return On Equity
-0.41
The market value of Gamestop Corp is measured differently than its book value, which is the value of Gamestop that is recorded on the company's balance sheet. Investors also form their own opinion of Gamestop Corp's value that differs from its market value or its book value, called intrinsic value, which is Gamestop Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Gamestop Corp's market value can be influenced by many factors that don't directly affect Gamestop Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Gamestop Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Gamestop Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gamestop Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.