Gamestop Story

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GME -- USA Stock  

USD 118.18  14.17  10.71%

GameStop Calculated Tax Rate is projected to drop slightly based on the last few years of reporting. The past year's Calculated Tax Rate was at 32.02. The current year Goodwill and Intangible Assets is expected to grow to about 1.5 B, whereas Tax Liabilities is forecasted to decline to about 99.7 M. The essential objective of this story is to break down our current position on GameStop for shareholders considering to short it. We will discuss why GameStop shareholders may still consider a stake in the business.
Published over a month ago
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Should you continue to rely on GameStop (NYSE:GME) management?
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 119.16 percent. This indicates that the company is making $1.19 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. When we forecast the price of GameStop, we are not concerned with any of GameStop fundamentals. We simply determine the future price of GameStop stock based solely on the trends of the past price. We use techniques such as the exponential moving average (EMA), oscillators, momentum and volume indicators, and others. Technical analysis is rather used for short-term strategies than the long-term ones. Our analysis's main assumption is that everything significant aboutGameStop is already priced into the stock.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Gamestop Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Gamestop Corp

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Gamestop Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Gamestop Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Gamestop Corp. Your research has to be compared to or analyzed against Gamestop Corp's peers to derive any actionable benefits. When done correctly, Gamestop Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Gamestop Corp.

How important is Gamestop Corp's Liquidity

Gamestop Corp financial leverage refers to using borrowed capital as a funding source to finance Gamestop Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gamestop Corp 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 Corp's total debt and its cash.

How Gamestop utilizes its cash?

To perform a cash flow analysis of Gamestop Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Gamestop Corp is receiving and how much cash it distributes out in a given period. The Gamestop Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Gamestop Corp Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 480.5 Million

Breaking it down

GameStop is displaying above-average volatility over the selected time horizon. Investors should scrutinize GameStop independently to ensure intended market timing strategies are aligned with expectations about GameStop volatility.

Margin Breakdown

Operating Margin5.55
EBITDA Margin0.0896
Gross Margin0.33
Profit Margin0.0453

Will GameStop growth be viable after the surge?

GameStop latest standard deviation ascents over 10.2. GameStop is displaying above-average volatility over the selected time horizon. Investors should scrutinize GameStop independently to ensure intended market timing strategies are aligned with expectations about GameStop volatility.

Our Final Perspective on GameStop

Although some companies under the specialty retail industry are still a bit expensive, GameStop may offer a potential longer-term growth to shareholders. Taking everything into account, as of the 22nd of January 2021, we believe that at this point, GameStop is unstable with below average chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our concluding 30 days Buy-Hold-Sell recommendation on the firm is Strong Sell.

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 Raphi Shpitalnik do not own shares of Gamestop Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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