GameStop Corporation Common Stock (GME)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. GameStop sells games, collectibles, and accessories through stores and e-commerce, but revenue is shrinking: in fiscal 2025, the year ended 2026-01-31, revenue was $3.6B, versus $3.8B in fiscal 2024, the year ended 2025-02-01, and $5.3B in fiscal 2023, the year ended 2024-02-03. That is not a stable top line, and I see no durable competitive moat in specialty retail against digital distribution. The turnaround is real on paper: in fiscal 2025, net income was $418.4M, or $0.77 diluted EPS, up from $131.3M and $0.33 in fiscal 2024 and $6.7M and $0.02 in fiscal 2023. In fiscal Q2 2026, the quarter ended 2026-08-01, revenue was $790.2M, net income $298.7M, and diluted EPS $0.51. But revenue in that quarter fell from $972.2M in fiscal Q2 2025, the quarter ended 2025-08-02, even as net income rose from $168.6M. That mix suggests cost cuts or non-operating gains, not healthy sales growth. Financial health is mixed: trailing free cash flow is $688M, a 5.0% FCF yield by FairStock's calculation, but FairStock's ROCE is only 2.86%, its Altman Z-Score is 2.44, and its Piotroski F-Score is 4/9. At the $27.22 close on 2026-10-13, FairStock's P/E is 17.91, P/B is 1.99, EV/EBITDA is 26.05, and Graham Number is $21.62, leaving a -25.9% margin of safety. FairStock's PEG of 0.23 looks tempting only if profit growth persists, but negative revenue growth and a 26/100 FairStock Score make that doubtful. This is a speculative turnaround, not a classic value bargain.

In plain English: GameStop sells video games, collectibles, and gaming accessories in stores and online. Sales have been falling, but the company has turned profitable and produces cash. At $27.22, the stock looks fully priced rather than cheap based on its current sales, profits, and assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer