GameStop Corp. (GME) | Investment Case

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 has been driven by several positive factors. The company's Q4 FY2025 results, released on March 24, 2026, delivered a significant earnings beat, with adjusted earnings per share of $0.49, surpassing the $0.37 consensus estimate. Additionally, GameStop's cash reserves have swelled to $9 billion, providing a solid foundation for potential acquisitions. The company's CEO, Ryan Cohen, has been buying shares, demonstrating confidence in the business. Furthermore, investors are speculating about potential acquisitions, with some suggesting that GameStop could target companies like Best Buy or Sirius XM.

1.c. Company Highlights

Last Price	24.55
Change Percentage	-2.50%
Open	25.19
Previous Close	25.18
Market Cap ( Millions)	11008
Volume	8085795
Year High	35.81
Year Low	19.93
M A 50	23.71
M A 200	23.14

FCF Yield	5.43%
Dividend Yield	0.00%
ROE	8.00%
Debt / Equity	80.12%
Net Debt / EBIDTA	-636.15%
Price To Book	2.02
Price Earnings Ratio	26.26
Price To FCF	18.43
Price To sales	3.03
EV / EBITDA	29.68

2. Transcript Summary

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3. NewsRoom

Why Is GameStop Stock Up Today?

Apr -16

Source: benzinga.com

GameStop Launches Power Packs for Digital Trading Cards

Apr -14

Source: businesswire.com

GameStop's Cash Reserves Hit $9 Billion, but Wall Street Analysts Are Skeptical About Its Potential

Apr -12

Source: fool.com

GameStop Is Stockpiling Cash. Here Are 3 Big Moves the Company Could Make in 2026.

Apr -08

Source: fool.com

GameStop Is Reportedly Considering an Acquisition That Could be "Transformational" for the Business. Here's What We Know.

Apr -06

Source: fool.com

Big Short Steve Eisman Says It's 'Not Compelling' To Bet On GameStop Despite Cash Pile Swelling To $9 Billion

Apr -05

Source: feeds.benzinga.com

GameStop Revenue Is Down. Should Investors Consider Buying the Famous Meme Stock on the Dip?

Mar -31

Source: fool.com

GameStop's $9 Billion War Chest: 5 Likely Acquisition Targets Ranked

Mar -31

Source: 247wallst.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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Etsy

A-Score: 5.3/10

Value: 7.0

Growth: 7.8

Quality: 7.1

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

Advance Auto Parts

A-Score: 5.0/10

Value: 9.4

Growth: 1.4

Quality: 4.1

Yield: 5.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

Chewy

A-Score: 4.5/10

Value: 1.7

Growth: 9.0

Quality: 5.5

Yield: 0.0

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

Wayfair

A-Score: 4.3/10

Value: 5.7

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

GameStop

A-Score: 3.7/10

Value: 3.4

Growth: 4.3

Quality: 5.8

Yield: 0.0

Momentum: 5.5

Volatility: 3.0

1-Year Total Return ->

A-Score: 2.2/10

Value: 3.8

Growth: 2.9

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.45%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

3.04%

GameStop Corp. - US36467W1099

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GME

1.c. Company Highlights

More Volatile

Lower Growth

Expensive

Earnings Miss

Revenues Miss

Earnings Beats

Average Yield

Medium Volatility

Revenues Beats

Average Quality

2. Transcript Summary

3. NewsRoom

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%

Software

Expected Growth: 12.12%

Collectibles

Expected Growth: 9.98%

7. Detailed Products

New Video Games

Pre-Owned Video Games

Gaming Consoles

Gaming Accessories

Collectibles

Digital Downloads

Trade-In Program

Esports and Gaming Events

8. GameStop Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.55$

Current Price

24.55$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA