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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2914
Positioning
Market Dominance
Retail Trade
Retail
$10.0B
Ryan Cohen
GameStop Corp. provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. As of January 29, 2022, the company operated 4,573 stores and ecommerce sites under the GameStop, EB Games, and Micromania brands. The company was formerly known as GSC Holdings Corp.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = GME ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ARCO Arcos Dorados Holdings Inc. | 73 | 85 | 89 | 65 | - | - | 29.1% | 5.1% | 46.8% | 7.3% | 3.3% | 3.2% | 3.4% | 153.0x | $1.5B | VS | |
$IMKTA INGLES MARKETS INC | 70 | 73 | 89 | 76 | 11.3x | 4.1x | 5.3% | 3.3% | 23.9% | 2.2% | 1.6% | -5.4% | 1.0% | 32.0x | $1.3B | VS | |
$SGU STAR GROUP, L.P. | 69 | 82 | 79 | 63 | - | - | 26.2% | 7.8% | 31.5% | 6.4% | 4.1% | 1.0% | 6.1% | 63.0x | $399M | VS | |
$EZPW EZCORP INC | 68 | 77 | 82 | 89 | 7.2x | 4.2x | 12.0% | 6.4% | 58.6% | 11.7% | 8.6% | 9.7% | 0.0% | 51.0x | $1.2B | VS | |
$HTHT H World Group Ltd | 68 | 91 | 44 | 84 | - | - | 24.9% | 4.9% | 100.0% | 21.8% | 13.0% | 6.2% | 2.9% | 45.0x | $101.1B | VS | |
$DDL Dingdong (Cayman) Ltd | 68 | 86 | 82 | 57 | - | - | 42.4% | 4.0% | 100.0% | 0.9% | 1.3% | 12.3% | 0.0% | 201.0x | $1.2B | VS | |
$SBH Sally Beauty Holdings, Inc. | 68 | 83 | 92 | 77 | 5.1x | 2.3x | 27.5% | 6.9% | 51.6% | 8.9% | 5.3% | -0.4% | 0.0% | 177.0x | $1.6B | VS | |
$SPH SUBURBAN PROPANE PARTNERS LP | 67 | 80 | 90 | 53 | - | 13.0x | 18.6% | 4.7% | 60.7% | 14.4% | 7.4% | 7.9% | 7.1% | 202.0x | $1.2B | VS | |
$IHG INTERCONTINENTAL HOTELS GROUP PLC /NEW/ | 67 | 63 | 81 | 67 | - | - | -29.5% | 13.1% | 58.6% | 40.7% | 27.4% | 6.8% | 1.3% | - | $21.5B | VS | |
$ROST ROSS STORES, INC. | 67 | 63 | 55 | 83 | 25.2x | 16.5x | 34.8% | 13.3% | 28.0% | 11.6% | 9.1% | 10.4% | 1.0% | 26.0x | $51.6B | VS | |
$GME GameStop Corp. | 44 | 31 | 45 | 51 | 34.4x | 93.0x | 5.8% | 2.9% | 32.0% | 1.9% | 8.7% | -6.9% | 0.0% | 78.0x | $10.0B | ||
| SECTOR BENCH | - | - | - | - | - | 21.4x | 9.1x | 8.9% | 2.9% | 36.2% | 3.9% | 1.6% | 3.8% | 0.0% | 0.6x | - | REF |
GameStop Corp. (GME) receives a "Reduce" rating with a composite score of 44.3/100. It ranks #2914 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Ryan Cohen
Chief Executive Officer
Labor Force
12,000
31
33
52
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for GME
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Retail Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for GME.
View All RatingsConservative accounting — High cash conversion efficiency
Material decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 31 | 12 | +19ALPHA |
| MOMENTUM | 51 | 50 | +1NEUTRAL |
| VALUATION | 45 | 45 | 0NEUTRAL |
| INVESTMENT | 33 | 46 | -13DRAG |
| STABILITY | 52 | 56 | -4NEUTRAL |
| SHORT INT | 46 | 46 | 0NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 5.8% (sector 8.9%)
GM 32% vs sector 36%, OM 2% vs sector 4%
Capital turnover N/A
Rev growth -7%, 11yr history
Interest coverage N/A, Net debt/EBITDA -92.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
GameStop Corp. receives a Reduce rating from our analysis, with a composite score of 44.3/100 and 2 out of 5 stars, ranking #2914 out of 7,333 stocks. GME's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
GME's quality score of 31/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 5.8% (sector avg: 8.9%), gross margins of 32.0% (sector avg: 36.2%), net margins of 8.7% (sector avg: 1.6%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 45/100, GME appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 34.38x, an EV/EBITDA of 93.00x, a P/B ratio of 1.98x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
GameStop Corp.'s investment score of 33/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -6.9% vs. a sector average of 3.8% and a return on assets of 2.9% (sector: 2.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
GME demonstrates moderate momentum with a score of 51/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -6.9% year-over-year, while a beta of 0.67 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 52/100, GME exhibits average financial resilience. Key stability metrics include a beta of 0.67 and a debt-to-equity ratio of 78.00x (sector avg: 0.6x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 46/100 for GME suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 78.00x). With a $10.0B market cap (mid-cap), GameStop Corp. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
GameStop Corp. is a mid-cap company in the Retail Trade sector, ranked #0 of 50 in its sector (100th percentile) and #2914 of 7,333 overall (60th percentile). Key comparisons include ROE of 5.8% trailing the 8.9% sector median and operating margins of 1.9% below the 3.9% sector average. This top-quartile standing reflects exceptional competitive strength relative to Retail Trade peers.
While GME currently exhibits a REDUCE profile, superior opportunities exist within the RETAIL TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Retail Trade Alpha →Quant Factor Profile
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Improvement in Quality (31) would have the largest impact on the composite score.
EV/EBITDA 921% ABOVE SECTOR MEDIAN
ROE 35% BELOW SECTOR MEDIAN
Gross Margin 11% BELOW SECTOR MEDIAN
AUDIT DATA AS OF AUG 2, 2025 (Q2 FY2025)
We rate GameStop Corp. (GME) as a Reduce with a composite score of 44.3/100 at a current price of $23.74. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (52th percentile) and momentum (51th percentile), which together account for the majority of the composite score. Offsetting weakness in quality (31th percentile) and investment (33th percentile) tempers our overall conviction. We assign a No Moat rating (25/100), Low uncertainty, and Poor capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
GameStop Corp. holds a top-quartile position (#0 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.3/100 places it at rank #2914 in our full 7,333-stock universe. At $10.0B in market capitalization, GameStop Corp. is a mid-cap player in the Retail Trade space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -7% combined with momentum at the 51th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 32% (-4.2pp vs sector) narrow to operating margins of 2% (-2.0pp vs sector) and net margins of 8.7%, yielding a gross-to-net conversion rate of 27%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $23.74, GameStop Corp. is trading near fair value based on current fundamentals. Our value factor score of 45/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 34.4x (a 60% premium to the sector median of 21.4x), EV/EBITDA of 93.0x (at a premium), P/B of 2.0x, P/S of 3.2x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.
The stock may offer contrarian value if near-term headwinds prove transitory — the current weakness in factor scores may reverse if business fundamentals stabilize.
The Reduce rating (composite 44.3/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -7% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Below-average quality (31th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a Low uncertainty rating to GameStop Corp.. The company exhibits strong financial stability with a beta of 0.67, and a stability factor in the 52th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: weak quality scores (31th percentile); low beta of 0.67 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 52th percentile and quality factor at the 31th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our low uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate GameStop Corp.'s capital allocation as Poor. Key concerns include suboptimal returns on capital. Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — GameStop Corp. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, GameStop Corp. receives a Reduce rating with a composite score of 44.3/100 (rank #2914 of 7,333). Our quantitative framework assigns a No Moat (25/100, trend: stable), Low uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 42/100.
Our analysis does not support a constructive view on GameStop Corp. at this time. The combination of limited competitive advantages, low uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign GameStop Corp. a meaningful economic moat, scoring 25/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 11.4/20.
The strongest moat sources are margin superiority (11.4/20) and financial resilience (10.6/20). GM 32% vs sector 36%, OM 2% vs sector 4%. Interest coverage N/A, Net debt/EBITDA -92.7x. These pillars form the core of GameStop Corp.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and growth durability (1.3/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect GameStop Corp.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include declining revenues (-7%) that pressure the earnings outlook. The margin cascade from 32% gross to 2% operating to 8.7% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 31th percentile.
The margin profile shows gross margins of 32%, operating margins of 2%, net margins of 8.7%. Return metrics include ROE of 5.8% and ROA of 2.9%. Relative to the Retail Trade sector, gross margins are 4.2 percentage points below the sector median of 36%, and ROE of 5.8% compares to a sector median of 8.9%.
The balance sheet reflects moderate leverage with D/E of 78%, revenue growth of -7%. The sector median D/E is 1%, putting GameStop Corp. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
U.S. stock futures declined on Monday following Friday's sell-off triggered by President Trump's nomination of Kevin Warsh as Federal Reserve Chair. Major indices fell with the S&P 500 down 0.58% and Nasdaq 100 down 0.88%. Gold and precious metals dropped sharply after January's rally. Key stocks in focus include Walt Disney ahead of earnings, GameStop which surged 2.97% on CEO Ryan Cohen's $100 billion acquisition plans, and NXP Semiconductors which fell 1.14% ahead of earnings.
CEO Ryan Cohen and other GameStop executives have recently reported multiple insider share purchases. At the same time, several institutional investors have reduced their holdings in NYSE:GME. Management has not provided new details on previously discussed merger or combination plans, despite continued market interest. GameStop, trading on the NYSE under ticker GME, most recently closed at $23.64, with the stock up 14.6% year to date and 25.2% over the past 3 years. Over 1 year, the share...
GameStop shares surged 3.73% to $23.64 on January 30, 2026, as CEO Ryan Cohen unveiled plans to transform the company into a $100 billion juggernaut through major acquisitions. With $9 billion in cash, Cohen aims to acquire a publicly traded company in consumer or retail sectors. Legendary investor Michael Burry endorsed the strategy, taking a fresh stake and comparing it to Berkshire Hathaway's playbook. Cohen's compensation package could award him up to $35 billion in stock if GameStop reaches $100 billion valuation and $10 billion EBITDA.
GameStop CEO Ryan Cohen announced plans to transform the company from an $11 billion to a $100+ billion business through a significant acquisition in the consumer or retail sector. Cohen acknowledged the high-risk nature of the move, describing it as potentially 'genius or totally foolish.' Investor Michael Burry has suggested Cohen follow a Berkshire Hathaway-style strategy using cash reserves for major acquisitions.
Natural gas surged over 30% to above $6/MMBtu due to Winter Storm Fern, marking the largest weekly gain ever for a Nymex contract. Silver jumped 13% to $116/oz, its best day since 2008, while gold rose 2.2% to $5,100. U.S. equities gained modestly with the S&P 500 and Nasdaq up 0.7%, driven by technology and mining stocks. Dollar weakness supported the commodity rally.
Above 50MA
37.18%
Net New Highs
+51081