By analyzing existing primary indicators between Gamestop Corp and Genuine, 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 Genuine with a short position in Gamestop Corp. 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 Corp has an asset utilization ratio of 138.79 percent. This indicates that the company is making $1.39 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.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in GameStop Corp. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on GameStop Corp, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
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. Financial leverage can amplify the potential profits to GameStop Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of GameStop Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between GameStop Corp's total debt and its cash.
GameStop Corp Gross Profit
GameStop Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing GameStop Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show GameStop Corp Gross Profit growth over the last 10 years. Please check GameStop Corp's
gross profit and other
fundamental indicators for more details.
Breaking it down
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
Now, let's check Gamestop Corp revenue. Based on the latest financial disclosure, Gamestop Corp reported 6.01
B of revenue. This is 15.71% lower than that of the Consumer Cyclical sector and 57.49% lower than that of the
Specialty Retail industry. The revenue for all United States stocks is 36.3% higher than that of Gamestop Corp. As for Genuine Parts we see revenue of 19.7
B, which is 39.33% higher than that of the Specialty Retail
| Gamestop | 6.01 Billion |
| Sector | 7.13 Billion |
| Genuine | 19.7 Billion |
Time to sell Gamestop Corp is now
The skewness is down to 1.34 as of today. Gamestop Corp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gamestop Corp independently to ensure intended market timing strategies are aligned with expectations about Gamestop Corp volatility. 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.
Gamestop Corp Implied Volatility
Gamestop Corp's implied volatility exposes the market's sentiment of Gamestop Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Gamestop Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Gamestop Corp stock will not fluctuate a lot when Gamestop Corp's options are near their expiration.
Our Bottom Line On Gamestop Corp
Although some other firms 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. On the whole, as of the 31st of May 2022, we believe that at this point, Gamestop Corp is
overvalued with
very low chance of distress within the next 2 years. Our ongoing buy-hold-sell advice on the firm is
Cautious Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of GameStop Corp. Please refer to our
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