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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
GME
Primary Facts
Specialty Retail
Name:
-
Sector:
- 33500.00K
Industry:
27.36
CEO:
Mr. George Sherman
Total Employees:
Mid Cap
Our Technological Advancement Rating
Our Rating:
0.345892071
-2.656191205
Gamestop Corp. (XNYS:GME) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
GAMESTOP CORP. (XNYS:GME)
One Month Price Target:
Six Month Price Target :
$27.27
Likely Price in One Year's Time:
Ticker:
$26.82
Likely Trading Range Today Under (Normal Volatility)
$28.18
Price Upper limit ($) :
$26.28
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P318
This week:
$21.03
This month :
$13.2
Other Primary facts
Market Cap:
304.52M
Market Cap Classification:
7.65B
Number of Shares
IPO Date:
B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-60.%
-$.96
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$42.72
134.84%
$12.00
$56.67
Medium risk (<10%) entry points
Buy Call
Sell Call
$35.20
Buy Put:
Sell Put:
-$1.95
$19.52
$38.18
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Specialty Retail
Sharpe Ratio:
GME, is amongst the top 20% highest yielding stocks in terms of daily returns
Comparison:
2.86%
1.979395292
Sharpe ratio is 197.94% higher than the industry
Average Returns/Yield of
Specialty Retail
Daily returns:
1
Weekly returns:
1.01%
Monthly returns:
5.06%
Yearly returns:
242.72%
Comparison of returns:
5.950478643
Classification:
Average annual returns/yield (last 3 years) is 595.05% above industry average
Results of T-Test of Returns:
GME is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.02
Volatility (measured by Standard Deviation)
Daily Volatility:
& ratio is 273.88% higher than the market/S&P 500 average
Weekly Volatility:
11.76%
Monthly Volatility:
26.30%
Yearly Volatility:
52.61%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
229.32%
-84.23%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -84.23% below long-term volatility
Weekly VaR:
-23.15%
Monthly VaR:
-51.76%
How Much Can the price of
Specialty Retail
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Very high (>70%)
Worst case (decline):
$5.50
This translates to price declining to:
-80%
This translates to price declining to:
>85%
Severe Crash Probability
-103.52%
What is Value at Risk (VaR)?
Risk Fundamentals
525.96%
GME is a 630.67% riskier investment compared to the market/S&P 500 & is 525.96% riskier than Nasdaq (IXIC)
GME is a 630.67% riskier investment compared to the market/S&P 500
Beta Examination of
Specialty Retail
-0.586
Expected beta in 1 year's time:
0.795
Expected beta in 3 year's time:
0.369
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500---0.59
Beta in relation to Nasdaq (XNAS):
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Beta in relation to all global stocks::
Beta is -140.97% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
-0.392
-1.380
Average Industry Beta:
Beta is -138.04% lower than peers
-1.409712861
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -107.44% below industry mean WACC
-
Alpha provided | Alpha Analysis
Alpha provided:
0.523
10.083
155.057
Analysis of Cost of Capital of
Specialty Retail
Equity cost of capital:
Alpha is 15506% higher than market/& is unsustainably high
-1.067
Unlevered (without debt) cost of capital:
Equity cost of capital is -106.67% below industry mean WACC
Before-tax cost of debt:
-0.58%
After-tax cost of debt:
0.39%
Overall debt rating:
0.31%
Weighted average cost of capital (WACC):
0.39%
-107.44%
Key Per-Share Metrics & Analysis
Revenue per share:
-
Revenue growth rate per share of (3Y):
Price to sales ratio is -66.49% below the industry mean
-124.06%
EPS:
-
Expected Annual growth rate of EPS (3Y):
-
-120.72%
Free cash flow (FCF) per share:
Price to book ratio is 665.97% above the industry mean
-
-2.943996756
Debt per share
Debt repayment rate in last quarter: 42.76%
EBITDA per share
Each employee generates -114% less EBITDA than industry average revenue per employee
Valuation Analysis Today of
Specialty Retail
P/E Ratio:
-
P/E Ratio of Competitors/Peers:
0
-134.6525249
-1.203189654
-
-
P/S (Price to Sales ratio):
$20.07
-0.664914185
P/B (Price to book value ratio):
Price to sales ratio is -66.49% below the industry mean
-
-
Net income growth rate (3Y):
Annual revenue growth rate is -124.06% below industry average
125.63%
Dividend Analysis
Net income growth rate is 125.63% higher than the average industry net income growth rate
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
-
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
2.02%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 5.7 years
Debt to assets ratio:
0.69%
Net debt to assets ratio:
50.60%
-76.00%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -76.00% below industry average
-6.85
Looking forward:
Debt growth rate:
1.2x
-116.98%
42.76%
Analysis of Key Statistics
Correlation of price movement with the market:
3.56464238
Statistical significance of correlation:
-0.99%
Average Correlation of the industry with the market:
0.135
-71.61%
R Squared (percentage of price movement explained by movement of the market):
0.135
Correlation of price movement with Nasdaq (^IXIC):
0.018
Covariance of price movement with the market:
-0.013
Kurtosis
-0.09
41.969
Skewness of returns:
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
4.323
Fundamental Analysis & Dupont Analysis of
Specialty Retail
Gross Profit Margin Ratio:
1.32B
Operating Profit Margin Ratio:
Net profit margin is -218.88% lower than the industry
-221.15%
Net Profit Margin Ratio:
1.32B
Effective Tax Rate:
-1.21%
-0.891051357
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -298.12% lower than the industry
-3875.80%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is -221.15% lower than the industry
-298.12%
Financial Leverage:
Interest coverage ratio is -685.33% less than industry average
Current Ratio:
Return on equity (ROE) is -3875.80% lower than the industry
-0.279187892
Cash Conversion Cycle (days):
$1.46
-1.46413077
Current ratio is -27.92% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -294.40% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -146.41% below industry average
-0.308441993
EBITDA generated per employee:
Each employee generates -31% less revenue than industry average revenue per employee
-1.139907874
Profit generated per employee:
-$1.33
-127%
Free cash flow (FCF) generated per employee:
Each employee generates -127% less net income/profit than industry average revenue per employee
-1.067508891
Assets/Capital per employee
Each employee generates -107% less free cash flow than industry average revenue per employee
-1.067508891
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Specialty Retail
$22.45
HYATT HOTELS CORPORATION (XNYS:H)
TAPESTRY, INC. (XNYS:TPR)
RH (XNYS:RH)
SERVICE CORPORATION INTERNATIONAL (XNYS:SCI)
WILLIAMS-SONOMA, INC. (XNYS:WSM)
LEAR CORPORATION (XNYS:LEA)
On Holding Ltd (XNYS:ONON)
Berry Global Group, Inc. (XNYS:BERY)
Current Analyst Ratings
-$6.26
Strong buy�8%
Buy�8%
Hold�29%
Sell�4%
Strong sell�0%
Income Statement
Period:
4/30/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.11B
4.80B
90%
-
-
1.79B
-
-
6.59B
100.00K
2.80M
75.60M
-26%
- 11900.00K
- 2900.00K
-32%
- 11900.00K
Statement of Cash Flow
Date:
Period:
- 66800.00K
Differed Income Tax :
18.70M
Stock Based Compensation :
-
Change in Working Capital :
5.70M
Accounts Receivables:
4.90M
Other Working Capital:
-
Other Non-Cash Items:
- 16200.00K
Net Cash Provided by Operating Activities:
18.70M
Investments in PP&E:
- 18800.00K
Net Acquisitions:
- 14700.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
5/1/2021
2022
Q1
694.70M
-
694.70M
102.10M
570.90M
289.50M
1.66B
846.80M
-
-
-
-
58.70M
905.50M
-
2.56B
388.60M
267.50M
-
-
561.80M
1.22B
445.00M
20.30M
465.30M
-
1.68B
100.00K
408.10M
- 47200.0K
Value
1.79B
518.50M
879.50M
2.56B
-
712.50M
-
-
-
- 14700.00K
- 332400.00K
551.70M
-
-
- 50000.00K
169.30M
-
135.80M
770.80M
635.00M
- 18800.00K
- 14700.00K
Our Proprietary Portfolio Rating
Our Rating:
3.358712778
Price Forecast/Expected Price in Next 5 Years of
Specialty Retail
2023
2024
2025
2026
2027
26.3625192
$26.36
$25.32
$24.33
$23.37