Fundamental analysis · SEC EDGAR · TTM through 02/05/2026

Fundamental analysis of Gamestop Corp.

GME · NYSE · Technology

Fundamental quality

ATTRACTIVE

87

out of 100

Gamestop Corp. runs like a cash machine: it converts about 19.8% of revenue into free cash flow and holds a 20.4% net margin, though it grows at a measured pace. On fundamental quality it scores 87 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin 20.4%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

GameStop is the largest video-game retail chain, a business in structural decline as gaming goes digital. It's famous as the original meme stock: its share price moves more on retail-investor communities than on results, and it holds a large cash pile after selling shares into the spikes.

What will shape its future

  • What it does with its huge cash pile: today it's more a capital vehicle than a bet on its stores.
  • The decline of physical gaming, which erodes its original business year after year.
  • Meme volatility: the price can fully disconnect from fundamentals, in both directions.

Breakdown by area

I.Growth
95

EPS growth: 150% · Revenue growth: -5.7%

II.Profitability
72

Net margin: 20.4% · ROE: 13.1%

III.Financial health
95

Net debt/EBITDA: -7.97x · FCF: 19.8%

Source: SEC EDGAR · TTM through 02/05/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Strengths

  • Growing earnings per share (150% annualized).
  • Strong free-cash-flow generation (FCF margin of 19.8%): profit turns into real cash.
  • High net margin (20.4%): the business is clearly profitable.
  • It has turned profitable after years of losses.

Risks and weaknesses

  • Declining revenue (-5.7% annualized).
  • Erratic free cash flow, with several years in the red.

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
20215,090-21564-171
20226,011-381-496-1,227
20235,927-31352-1,089
20245,2737-239-893
20253,823131130-4,730
20263,630418597-2,140

Between 2021 and 2026, revenue went from $5,090M to $3,630M (-29%) and net income went from -$215M to $418M (+294%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

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Is Gamestop Corp. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Gamestop Corp. a good company to invest in?

In terms of business quality, Gamestop Corp. scores 87 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Gamestop Corp. a profitable company?

Very. Gamestop Corp. shows a net margin of 20.4% and an ROE of 13.1%, typical of a highly profitable business.

Does Gamestop Corp. have a lot of debt?

No. Gamestop Corp. has a net cash position: more cash than debt.

Is Gamestop Corp. growing?

Its revenue has fallen 5.7% annualized in recent years.

Does Gamestop Corp. generate cash?

Yes. It converts about 19.8% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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