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1. Company Snapshot

1.a. Company Description

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.The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.It also sells collectibles comprising licensed merchandise primarily related to the gaming, television, and movie industries, as well as pop culture themes.


As of January 29, 2022, the company operated 4,573 stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and 50 pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer, a print and digital video game publication featuring reviews of new releases, previews of the big titles on the horizon, and coverage of the latest developments in the gaming industry.The company was formerly known as GSC Holdings Corp.GameStop Corp.


was founded in 1996 and is headquartered in Grapevine, Texas.

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1.b. Last Insights on GME

GameStop's recent performance was driven by a clear turnaround in fundamentals, with top-line growth and improved operating efficiency. The company's Q2 results showed a 21.78% YoY net sales increase and a significant operating income swing, beating analyst expectations. Strong demand for hardware and collectibles fueled growth. Additionally, investor Michael Burry's recent activity reignited nostalgia for the 2021 "meme" stock rally, sparking interest in the stock. A substantial increase in call options trading also indicated renewed investor interest.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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GameStop (GME) Stock Pauses Ahead Of Earnings: What's Going On?

Dec -04

Source: feeds.benzinga.com

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Forget GameStop Stock, This Is a Much Better Buy

Dec -03

Source: fool.com

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GameStop Trade Anything Day Could Ignite Stock Ahead Of Earnings

Dec -03

Source: benzinga.com

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GameStop Stock Trends Monday As Burry Reignites "Roaring Kitty" Nostalgia

Dec -01

Source: feeds.benzinga.com

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Why Is GameStop Stock Down 38%?

Dec -01

Source: forbes.com

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GameStop vs. Beyond Meat: What Can These Meme Stock Rallies Teach Us?

Nov -30

Source: fool.com

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Investors Buy Large Volume of GameStop Call Options (NYSE:GME)

Nov -29

Source: defenseworld.net

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GameStop Announces Release Date for Third Quarter Fiscal 2025 Results

Nov -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.57%)

6. Segments

Hardware and Accessories

Expected Growth: 4.65%

GameStop Corp.'s Hardware and Accessories segment growth of 4.65% is driven by increasing demand for gaming consoles, accessories, and peripherals. The rise of esports, new console releases, and growing popularity of gaming among younger generations contribute to this growth. Additionally, strategic partnerships, improved in-store experiences, and effective inventory management also support the segment's expansion.

Software

Expected Growth: 12.12%

GameStop Corp.'s software segment growth of 12.12% is driven by increasing demand for gaming consoles, strong sales of new game releases, and growing popularity of digital downloads. Additionally, the company's strategic partnerships with gaming publishers and its loyalty programs contribute to the segment's growth.

Collectibles

Expected Growth: 9.98%

GameStop Corp.'s collectibles segment growth of 9.98% is driven by increasing popularity of gaming franchises, strategic partnerships with game developers, and expansion of online marketplaces. Additionally, the rise of esports and gaming communities has fueled demand for collectible items, such as figurines and apparel, contributing to the segment's growth.

7. Detailed Products

New Video Games

Newly released video games for various gaming platforms such as PlayStation, Xbox, and Nintendo Switch

Pre-Owned Video Games

Used video games that have been refurbished and tested to ensure they are in good condition

Gaming Consoles

New and refurbished gaming consoles such as PlayStation, Xbox, and Nintendo Switch

Gaming Accessories

Accessories such as controllers, headsets, and gaming keyboards

Collectibles

Limited edition figurines, posters, and other collectible items related to popular games and franchises

Digital Downloads

Digital versions of games and in-game content that can be downloaded directly to gaming consoles or PCs

Trade-In Program

A program that allows customers to trade in their used games and consoles for store credit or cash

Esports and Gaming Events

Organized gaming tournaments and events that bring gamers together to compete and socialize

8. GameStop Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GameStop Corp. faces moderate threat from substitutes, as customers can opt for digital game downloads or streaming services, but the company's strong brand and loyalty programs help mitigate this threat.

Bargaining Power Of Customers

GameStop Corp. has a large customer base, but individual customers have limited bargaining power due to the company's diversified product offerings and strong brand presence.

Bargaining Power Of Suppliers

GameStop Corp. relies on a few major suppliers for its products, giving them some bargaining power, but the company's large scale and diversified supplier base help mitigate this threat.

Threat Of New Entrants

GameStop Corp. operates in a highly competitive market, but the company's strong brand, established relationships with suppliers, and significant investments in e-commerce and digital capabilities create barriers to entry for new entrants.

Intensity Of Rivalry

GameStop Corp. operates in a highly competitive market with many established players, leading to intense rivalry and pricing pressure, but the company's strong brand and diversified product offerings help it maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 13.91%
Debt Cost 3.95%
Equity Weight 86.09%
Equity Cost 2.89%
WACC 3.04%
Leverage 16.15%

11. Quality Control: GameStop Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Etsy

A-Score: 5.4/10

Value: 6.0

Growth: 7.8

Quality: 7.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Advance Auto Parts

A-Score: 4.9/10

Value: 9.0

Growth: 1.6

Quality: 4.4

Yield: 4.0

Momentum: 9.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Chewy

A-Score: 4.7/10

Value: 1.7

Growth: 9.0

Quality: 5.3

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Wayfair

A-Score: 4.0/10

Value: 5.7

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 8.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
GameStop

A-Score: 3.2/10

Value: 2.7

Growth: 4.2

Quality: 5.6

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
RH

A-Score: 2.9/10

Value: 6.9

Growth: 2.9

Quality: 4.4

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.0$

Current Price

23$

Potential

-0.00%

Expected Cash-Flows