GameStop Corporation Common Stock (GME)

FairStock Score: 26/100 — RISKY

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Trades significantly above Graham Number ($15) with negative 74% margin of safety—limited downside protection
• Revenue declining at 13.9% year-over-year signals potential demand weakness or market share loss
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

GameStop Corporation Common Stock is a mid-cap consumer cyclical company valued at $11.3 billion. Revenue stands at $3.6 billion. From a quality standpoint, GameStop shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.6 in the grey zone. On valuation, the stock is trading at a premium 32.5x earnings, with trades above its Graham Number with a negative 74% margin. Growth dynamics show revenue growing at -13.9% and profit growth of -2.6%. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Sluggish -14% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer