Gamestop Story

GME -- USA Stock

USD 155.90 8.47 5.15%

Macroaxis Story

While some of us are becoming more passionate about consumer cyclical space, it makes sense to digest Gamestop Corp in greater detail. Why are we still confident in hope for a quick recovery. In this post, I will also go over some essential variables affecting Gamestop Corp's products, and show how it may impact Gamestop Corp outlook for active traders this year.

Published over three weeks ago

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Gamestop Corp (NYSE:GME) continues to surge

Gamestop Corp holds a performance score of 17 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of -10.3661, which attests to a somewhat significant risk relative to the market. Let's try to break down what Gamestop's beta means in this case. As returns on the market increase, returns on owning Gamestop Corp are expected to decrease by larger amounts. On the other hand, during market turmoil, Gamestop Corp is expected to outperform it. Although it is essential to pay attention to Gamestop Corp current price history, it is also good to be reasonable about what you can do with equity current price movements. Our philosophy towards determining future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Gamestop Corp expected return of 7.79 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Gamestop Corp downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to analyze future returns on 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 432.45 Million

What did Gamestop Corp file with SEC?

The SEC filings are financial statements or other formal documents of Gamestop Corp that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.

Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Gamestop shareholders may or may not be submitted as SEC does not always require it.

	13th of April 2021 Financial Statements and Exhibits. Regulation FD Disclosure. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement. Termination of a Material Definitive Agreement	View
	1st of April 2021 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers	View
	16th of February 2021 Unclassified Corporate Event	View
	10th of November 2020 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement	View

Breaking it down

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gamestop Corp 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 Corp is more efficient with each dollar of assets it utilizes for everyday operations.

	2014	2020	2021 (projected)
Long Term Debt to Equity	0.69	0.17	0.19
Interest Coverage	2.45	32.41	37.36

Long Term Debt to Equity Interest Coverage

Can Gamestop Corp build up on the latest surge?

Latest sortino ratio is at 0.41. Gamestop Corp is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Gamestop Corp implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gamestop Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gamestop Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Gamestop Corp

Although some other companies within the specialty retail industry are still a little expensive, even after the recent corrections, Gamestop Corp may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in Gamestop. 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 Corp.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

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 Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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