# GameStop Corp. Class A (GME) — Stock CV

GameStop Corp. is a $13.4B consumer company. Revenue shrank 18.9% over the last year, it keeps 28¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 15.0× earnings — near the lowest of its own history.

> GameStop Corp offers games, collectibles, and entertainment products through its stores and ecommerce platforms.

## Identity

- **Ticker**: GME
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Computer & Computer Software Stores
- **Headquarters**: GRAPEVINE, TX
- **Employees**: 20 000
- **Website**: https://www.gamestop.com
- **Market cap**: $13.4B
- **Last price**: $26.63
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $7.72B
- **Net income**: $2.18B
- **Free cash flow**: $1.72B
- **Net cash**: $727M
- **P/E**: 15.0
- **Revenue growth (YoY)**: -18.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 75 |
| Growth | 5 |
| Profitability | 77 |
| Health | 68 |
| Quality | 72 |
| Moat | 19 |

## Qualifications (beginner checklist) — 7 of 10 passed

- [ ] Revenue growing — -18.9% YoY
- [x] Profitable — $2.18B TTM
- [ ] Profit growing — -39.7% YoY
- [x] Generates cash — $1.72B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $13.4B market cap
- [ ] Not printing shares — +47.6% shares over ~5y
- [x] Proven track record — 6/12 profitable years
- [x] Financially stable — Altman Z 2.3 — grey
- [x] Valuation not extreme — P/E 15.0

## Experience (career milestones)

- **Q4 2026** — 2 open-market insider purchases: ~710K shares bought by insiders
- **Q3 2026** — 8 open-market insider purchases: ~2.7M shares bought by insiders
- **FY2026** — Best year on record: $1.79B net income
- **2025** — GameStop Canada was acquired by entrepreneur, Stephan Tetrault
- **2023** — In December, the Swiss business was saved by the small Italian gaming retailer, Cidiverte which operates ten stores…
- **FY2018** — Became debt-free: cash now exceeds total debt
- **FY2016** — First recorded profitable year: $657M net income
- **FY2016** — Revenue already above $10B: $19.7B in first reported year
- **2012** — Jolt closed in 2012. * In 2010, GameStop acquired Kongregate, a San Francisco–based website for browser-based games
- **2009** — GameStop, which had previously owned no stores in France, now had 332 French video-game stores
- **2008** — With the acquisition of Free Record Shop's 49 Norwegian stores
- **2005** — GameStop acquired EB Games (formerly Electronics Boutique) for $1.44 billion
- **2000** — Funco was renamed GameStop, Inc. in December 2000 in anticipation of an initial public offering
- **1999** — Three years later, in 1999, Babbage's Etc. launched its GameStop brand with 30 stores in strip malls
- **1991** — With its acquisition of Funco, Barnes & Noble also acquired Game Informer, a video game magazine that was first…
- **1984** — GameStop traces its roots to Babbage's, a Dallas, Texas–based software retailer founded in 1984 by former Harvard…

## Strengths

- Strongly profitable — 28.3% net margin
- Strong cash conversion — FCF is 22.3% of revenue
- Net cash position after subtracting debt from cash
- High returns on invested capital (ROIC 19.9%)

## Watch-outs

- Revenue shrinking 18.9% year over year
- Thin interest coverage (-30.6×)
- Loss-making in 5 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $12.4B | -$154M | -$801M |
| FY2024 | $8.93B | $81.5M | -$63.5M |
| FY2025 | $8.59B | $967M | $1.50B |
| FY2026 | $8.62B | $1.79B | $1.73B |
| FY2027 | $2.46B | $1.08B | $727M |

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Source: https://stockcv.com/GME — derived from company filings; may be delayed or incomplete. Information, not investment advice.