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GameStop
(NYSE:GME)
Select Model
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Rating:65Neutral
Price Target:
$20.50
▲(6.99% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by improved profitability and strong cash generation, supported by positive corporate actions (notably debt reduction and margin improvement). These positives are tempered by a weak technical setup (price below key moving averages with negative MACD) and ongoing revenue declines, which create uncertainty around the durability of the earnings rebound.
Positive Factors
Profitability and cash generation
Strong earnings conversion into operating and free cash flow indicates that the profitability turnaround is supported by cash generation rather than accounting results alone. This provides resources to strengthen the balance sheet, fund operations, and sustain investment over the next several quarters.
Negative Factors
Declining revenue
Persistently lower revenue creates uncertainty about the durability of the earnings rebound, particularly because profitability improvements are occurring alongside a contracting sales base. Continued top-line pressure could limit scale benefits, weaken category momentum, and make future growth more dependent on cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and cash generation
Strong earnings conversion into operating and free cash flow indicates that the profitability turnaround is supported by cash generation rather than accounting results alone. This provides resources to strengthen the balance sheet, fund operations, and sustain investment over the next several quarters.
Read all positive factors
GameStop Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth or face challenges, essential for assessing GameStop's strategic direction and market positioning.
Analyzes revenue from different business segments, highlighting which areas drive growth or face challenges, essential for assessing GameStop's strategic direction and market positioning.
Data provided by:
The Fly
The FlyGameStop (GME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.48B
Dividend Yield13.87%
Average Volume (3M)7.15M
Price to Earnings (P/E)10.0
Beta (1Y)0.21
Revenue Growth-7.71%
EPS Growth145.76%
CountryUS
Employees4,000
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.99
Shares Outstanding448,691,250
10 Day Avg. Volume6,834,428
30 Day Avg. Volume7,148,103
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.96
Price to Sales (P/S)2.94
P/FCF Ratio17.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.3
Revenue Forecast (FY)$3.90B
GameStop Business Overview & Revenue Model
Company Description
GameStop Corp. operates as a prominent specialty retailer, providing a diverse array of gaming and entertainment products to customers across the United States, Canada, Australia, and Europe, both through its online platforms and physical store lo...
How the Company Makes Money
GameStop primarily generates revenue by selling products related to video gaming and pop-culture merchandise through physical stores and online channels. Key revenue streams include: (1) Video game hardware sales (e.g., consoles, controllers, and ...
GameStop Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
61
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.55B | 3.63B | 3.82B | 5.27B | 5.93B | 6.01B |
| Gross Profit | 1.35B | 1.18B | 1.11B | 1.29B | 1.37B | 1.35B |
| EBITDA | 1.07B | 403.50M | 22.40M | 26.50M | -247.20M | -284.60M |
| Net Income | 893.30M | 418.40M | 131.30M | 6.70M | -313.10M | -381.30M |
Balance Sheet | ||||||
| Total Assets | 11.14B | 10.45B | 5.88B | 2.71B | 3.11B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 5.06B | 9.01B | 4.77B | 1.20B | 1.39B | 1.27B |
| Total Debt | 4.33B | 4.36B | 410.70M | 602.80M | 616.60M | 649.00M |
| Total Liabilities | 5.00B | 5.01B | 945.60M | 1.37B | 1.79B | 1.90B |
| Stockholders Equity | 6.14B | 5.44B | 4.93B | 1.34B | 1.32B | 1.60B |
Cash Flow | ||||||
| Free Cash Flow | 688.20M | 597.30M | 129.60M | -238.60M | 52.30M | -496.30M |
| Operating Cash Flow | 704.90M | 614.80M | 145.70M | -203.70M | 108.20M | -434.30M |
| Investing Cash Flow | -4.57B | -3.23B | 265.10M | -33.20M | -222.70M | -64.80M |
| Financing Cash Flow | -7.00M | 4.15B | 3.44B | -11.60M | -7.90M | 1.20B |
GameStop Technical Analysis
Neutral
19.16
Price Trends
20.17
Negative
21.48
Negative
22.17
Negative
Market Momentum
-0.19
Negative
59.61
Neutral
76.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GME, the sentiment is Neutral. The current price of 19.16 is above the 20-day moving average (MA) of 18.50, below the 50-day MA of 20.17, and below the 200-day MA of 22.17, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GME.
GameStop Risk Analysis
GameStop disclosed 60 risk factors in its most recent earnings report. GameStop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GameStop Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.77T | 20.03 | 30.50% | ― | 15.77% | 88.63% | |
72 Outperform | $46.54B | 20.95 | 48.28% | 1.18% | 15.18% | 7.28% | |
69 Neutral | $18.73B | 14.62 | 42.82% | 4.34% | 1.45% | 65.55% | |
65 Neutral | $8.48B | 9.99 | 15.72% | 13.87% | -7.71% | 145.76% | |
59 Neutral | $277.69B | 24.27 | 7.04% | 0.96% | 7.76% | -49.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | $318.18M | 33.72 | 5.52% | ― | ― | ― |
* General Sector Average
GME
GameStop
19.89
-4.96
-19.96%
AMZN
Amazon
252.40
22.45
9.76%
BBY
Best Buy Co
88.03
13.72
18.46%
NEGG
Newegg Commerce
15.06
-22.71
-60.13%
EBAY
eBay
103.51
12.21
13.38%
BABA
Alibaba
109.40
-44.65
-28.99%
GameStop Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
GameStop boosts profitability, debt reduced amid collectibles surge
Positive
Sep 8, 2026
In the second quarter ended August 1, 2026, GameStop reported record operating income of $160.2 million, even as net sales fell to $790.2 million from $972.2 million a year earlier due to the prior-year Nintendo Switch 2 launch, store closures and...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
GameStop Modifies Convertible Note Exchange Agreement Terms
Neutral
Aug 31, 2026
On August 2, 2026, GameStop entered privately negotiated agreements to exchange $400 million of its 0.00% Convertible Senior Notes due 2030 and $1.0 billion of its 0.00% Convertible Senior Notes due 2032 for Class A common stock. On August 31, 202...
Business Operations and StrategyPrivate Placements and Financing
GameStop to Exchange Convertible Notes for Equity Shares
Positive
Aug 3, 2026
On August 2, 2026, GameStop entered into privately negotiated agreements with certain institutional holders of its 0.00% convertible senior notes due 2030 and 2032 to exchange about $1.4 billion of these notes for shares of Class A common stock. T...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
GameStop Shareholders Approve Expansion of Authorized Common Stock
Positive
Jul 8, 2026
On July 7, 2026, GameStop stockholders approved all proposals at the 2026 Annual Meeting, including an amendment to the certificate of incorporation that raises authorized Class A common shares to 2.5 billion. The move, backed by 68.7% of votes ca...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
GameStop Issues 2027 Outlook, Highlights eBay Acquisition Plans
Positive
Jun 26, 2026
On June 26, 2026, GameStop provided an outlook for its fiscal year ending Jan. 30, 2027, projecting adjusted EBITDA of more than $600 million, a sharp increase from $345.4 million in fiscal 2025. The company framed adjusted EBITDA as a key nonR...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
GameStop Withdraws CEO Award to Focus on eBay Deal
Positive
Jun 23, 2026
On June 23, 2026, GameStop announced that its board granted Chairman and CEO Ryan Cohen’s request to withdraw a proposed CEO performance award from the company’s proxy statement, a plan originally approved in January 2026. Cohen said t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.