Gamestop Corp Profitability Analysis

GME
 Stock
  

USD 39.68  0.84  2.07%   

For Gamestop Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gamestop Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gamestop Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gamestop Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gamestop Corp over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
Gamestop Corp Sales per Share is projected to increase slightly based on the last few years of reporting. The past year's Sales per Share was at 20.70. Gamestop Corp Net Income is projected to decrease significantly based on the last few years of reporting. The past year's Net Income was at (381.3 Million). The current year Net Income Common Stock is expected to grow to about 6.2 M, whereas Net Income to Non Controlling Interests is forecasted to decline to (1.7 M).

Gamestop Corp Revenues

8.06 Billion

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
12.3 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.

Gamestop Corp Revenue vs. Number of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Gamestop Corp's current stock value. Our valuation model uses many indicators to compare Gamestop Corp value to that of its competitors to determine the firm's financial worth.
Gamestop Corp is one of the top stocks in number of shares shorted category among related companies. It is rated as one of the top companies in revenue category among related companies totaling about  102.48  of Revenue per Number of Shares Shorted. Gamestop Corp Revenues is projected to decrease significantly based on the last few years of reporting. The past year's Revenues was at 6.01 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Gamestop Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Gamestop Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Gamestop Corp's earnings, one of the primary drivers of an investment's value.

Gamestop Revenue vs. Number of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Gamestop Corp 
Shares Shorted 
 = 
Shorted by Public 
by Institutions 
59.62 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
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.
Gamestop Corp 
Revenue 
 = 
Money Received 
Discounts and Returns 
6.11 B
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.

Gamestop Revenue vs Competition

Gamestop Corp is rated as one of the top companies in revenue category among related companies. Market size based on revenue of Specialty Retail industry is currently estimated at about 901.2 Billion. Gamestop Corp maintains roughly 6.11 Billion in revenue contributing less than 1% to equities listed under Specialty Retail industry.

Gamestop Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Gamestop Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Gamestop Corp will eventually generate negative long term returns. The profitability progress is the general direction of Gamestop Corp's change in net profit over the period of time. It can combine multiple indicators of Gamestop Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-68.7 M-49.5 M
Consolidated Income-381.3 M6.2 M
Net Income-381.3 M6.2 M
Net Income Common Stock-381.3 M6.2 M
Net Loss Income from Discontinued Operations630 K646.6 K
Net Income to Non Controlling Interests-1.6 M-1.7 M
Operating Income-368.5 M131.5 M
Income Tax Expense-14.1 M105.8 M
Net Income Per Employee-9.6 K-2.4 K
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.

Gamestop Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Gamestop Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Gamestop Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Gamestop Corp's important profitability drivers and their relationship over time.

Gamestop Corp Profitability Trends

Gamestop Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Gamestop Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Gamestop Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Gamestop Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Gamestop Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Gamestop Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Gamestop Corp's future profitability.

Use Gamestop Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Gamestop Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gamestop Corp will appreciate offsetting losses from the drop in the long position's value.

Gamestop Corp Pair Trading

Gamestop Corp Pair Trading Analysis

The ability to find closely correlated positions to Gamestop Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gamestop Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Gamestop Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Gamestop Corp to buy it.
The correlation of Gamestop Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Gamestop Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gamestop Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Gamestop Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Gamestop Corp position

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Please check Risk vs Return 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Gamestop Corp price analysis, check to measure Gamestop Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gamestop Corp is operating at the current time. Most of Gamestop Corp's value examination focuses on studying past and present price action to predict the probability of Gamestop Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Gamestop Corp's price. Additionally, you may evaluate how the addition of Gamestop Corp to your portfolios can decrease your overall portfolio volatility.
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To fully project Gamestop Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Gamestop Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Gamestop Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Gamestop Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Gamestop Corp investors may work on each financial statement separately, they are all related. The changes in Gamestop Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gamestop Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.