GameStop Story

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GME -- USA Stock  

USD 9.14  0.90  8.96%

It looks like Lands End will be up for a correction way faster as its share price whent up 4.15% today to GameStop's 2.6667%. While some millenniums may be indifferent towards consumer cyclical space, we will examine how sound are GameStop fundamentals compared to Lands End. We are going to discuss some of the competitive aspects of both GameStop and Lands.
Published over three weeks ago
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Will Lands (NASDAQ:LE) shadow GameStop price growth?
By analyzing existing basic indicators between GameStop and Lands, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Lands with a short position in GameStop. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GameStop has an asset utilization ratio of 137.17 percent. This indicates that the company is making $1.37 for each dollar of assets. An increasing asset utilization means that GameStop is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as GameStop or Lands is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING GameStop dividends

A dividend is the distribution of a portion of GameStop earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. GameStop dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. GameStop one year expected dividend income is about $0.25 per share.
The current year Dividends per Basic Common Share is expected to grow to 0.89, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (99.6 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-40.5 M-99.6 M
Dividend Yield 0.1  0.07 
Dividends per Basic Common Share 0.38  0.89 
Investing in stocks that pay dividends, such as stock of GameStop, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in GameStop must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for GameStop. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is GameStop's Liquidity

GameStop financial leverage refers to using borrowed capital as a funding source to finance GameStop ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GameStop financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between GameStop's total debt and its cash.

Correlation Between GameStop and Lands End

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding GameStop together with similar or unrelated positions with a negative correlation. For example, you can also add Lands End to your portfolio. If Lands End is not perfectly correlated to GameStop it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When GameStop for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between GME and LE for more information.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at GameStop revenue. Based on the latest financial disclosure, GameStop reported 5.94 B of revenue. This is 16.69% lower than that of the Consumer Cyclical sector and 57.99% lower than that of the Specialty Retail industry. The revenue for all United States stocks is 37.04% higher than that of GameStop. As for Lands End we see revenue of 1.4 B, which is 90.1% lower than that of the Specialty Retail

GameStop5.94 Billion
Sector7.13 Billion
Lands1.4 Billion
5.9 B
7.1 B

Our perspective of the latest GameStop surge

Latest value at risk is at -7.38. As of the 31st of August, GameStop retains the Market Risk Adjusted Performance of 0.2936, risk adjusted performance of 0.1345, and Downside Deviation of 4.68. GameStop technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for GameStop, which can be compared to its competitors. Please check out GameStop maximum drawdown, and the relationship between the information ratio and downside variance to decide if GameStop is priced fairly, providing market reflects its last-minute price of 5.39 per share. Given that GameStop has jensen alpha of 0.1585, we strongly advise you to confirm GameStop's regular market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Although some other firms within the specialty retail industry are still a little expensive, even after the recent corrections, GameStop may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe it may be a good time to exit GameStop as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to GameStop.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of GameStop. Please refer to our Terms of Use for any information regarding our disclosure principles.

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