NYSE · Consumer Cyclical

GameStop Corp.

GME · Specialty Retail

$21.52

▲ 0.01 (0.05%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 33.0%

Operating Margin 7.9%

Net Income Margin 11.5%

Fin. Health

B⤢

Years to Pay Off Debt 10.4 yrs

Working Capital vs Long-Term Debt $5.2B

Working Capital $9.4B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.77x

Cash Flow

A⤢

Free Cash Flow $597M

CapEx % of Net Income 4.2%

Owner Earnings $450M

Profitability

Gross Profit Margin 33.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 7.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 11.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 10.4 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $5.2B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $9.4B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $597M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 4.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $450M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About GameStop Corp.

GameStop Corp., a specialty retailer, provides games, collectibles, and entertainment products through its stores and e-commerce platforms in United States, Australia and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and other peripheral devices; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts. The company operates stores and e-commerce sites under the GameStop, EB Games, and Micromania brands; and pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is based in Grapevine, Texas.

Market Data

Market Cap $9.7B

Enterprise Value $5.6B

P/E (TTM) 16.06

Dividend Yield N/A

Exchange NYSE

Key Margins

Gross Profit 33.0%

Operating Margin 7.9%

Net Margin 11.5%

Company Info

Sector Consumer Cyclical

Industry Specialty Retail

Employees 4000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering GameStop Corp. at $21.52.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $21.52, the stock trades at a 48% premium to its Graham Number of $14.50. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 1.9x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	2026	2025	2024	2023	2022
Gross Profit %	33.0%▲	29.1%▲	24.5%▲	23.1%•	N/A
Operating Margin %	7.9%▲	-0.4%▲	-0.6%▲	-5.2%•	N/A
Net Income %	11.5%▲	3.4%▲	0.1%▲	-5.3%•	N/A
Diluted EPS	0.77▲	0.33▲	0.02▲	-1.03•	N/A

Balance Sheet Highlights

Metric	2026	2025	2024	2023	2022
Total Assets	$10.4B	$5.9B	$2.7B	$3.1B	N/A
Total Debt	$4.4B▲	$411M▼	$603M▼	$617M•	N/A
Working Capital	$9.4B▲	$4.7B▲	$1.0B▲	$985M•	N/A
Years to Pay Debt	10.43	3.13	89.97	-1.97	N/A

Cash Flow Highlights

Metric	2026	2025	2024	2023	2022
Free Cash Flow	$597M▲	$130M▲	-$239M▼	$52M•	N/A
Owner Earnings	$450M	$186M	$98M	-$196M	N/A
CapEx % of Net Income	4.2%	12.3%	520.9%	N/A	N/A

Income Statement

	2026	2025	2024	2023	2022
Tax Effect Of Unusual Items	-74,160	-417	-1,008	-567
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	485,900	32,100	31,300	-244,500
Total Unusual Items	-185,400	-9,700	-4,800	-2,700
Total Unusual Items Excluding Goodwill	-185,400	-9,700	-4,800	-2,700
Net Income From Continuing Operation Net Minority Interest	418,400	131,300	6,700	-313,100
Reconciled Depreciation	14,600	38,900	56,200	61,700
Reconciled Cost Of Revenue	2,433,800	2,709,100	3,978,600	4,555,100
EBITDA	300,500	22,400	26,500	-247,200
EBIT	285,900	-16,500	-29,700	-308,900
Net Interest Income	271,500	163,400	49,500	9,500
Interest Expense					26,900
Interest Income	271,500	163,400	49,500	9,500
Normalized Income	529,640	140,583	10,492	-310,967
Net Income From Continuing And Discontinued Operation	418,400	131,300	6,700	-313,100
Total Expenses	3,344,000	3,839,500	5,302,500	6,236,100
Total Operating Income As Reported	232,100	-26,200	-34,500	-311,600
Diluted Average Shares	549,100	394,700	305,200	304,200
Basic Average Shares	447,600	394,100	305,100	304,200
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	418,400	131,300	6,700	-313,100
Net Income Common Stockholders	418,400	131,300	6,700	-313,100
Net Income	418,400	131,300	6,700	-313,100
Net Income Including Noncontrolling Interests	418,400	131,300	6,700	-313,100
Net Income Continuous Operations	418,400	131,300	6,700	-313,100
Tax Provision	-34,400	5,900	6,400	11,000
Pretax Income	384,000	137,200	13,100	-302,100
Other Income Expense	-173,400	-9,700	-6,700	-2,700
Other Non Operating Income Expenses	12,000		-1,900
Special Income Charges	-185,400	-9,700	-4,800	-2,700
Gain On Sale Of Ppe	-131,600	0	0	0
Write Off	53,800	9,700	4,800	2,700
Impairment Of Capital Assets				0	6,700
Net Non Operating Interest Income Expense	271,500	163,400	49,500	9,500
Total Other Finance Cost			-49,500	-9,500	26,900
Interest Expense Non Operating					26,900
Interest Income Non Operating	271,500	163,400	49,500	9,500
Operating Income	285,900	-16,500	-29,700	-308,900
Operating Expense	910,200	1,130,400	1,323,900	1,681,000
Selling General And Administration	910,200	1,130,400	1,323,900	1,681,000
Gross Profit	1,196,100	1,113,900	1,294,200	1,372,100
Cost Of Revenue	2,433,800	2,709,100	3,978,600	4,555,100
Total Revenue	3,629,900	3,823,000	5,272,800	5,927,200
Operating Revenue	3,629,900	3,823,000	5,272,800	5,927,200

Balance Sheet

	2026	2025	2024	2023	2022
Ordinary Shares Number	448,300	446,800	305,700	304,600
Share Issued	448,300	446,800	305,700	304,600
Total Debt	4,361,900	410,700	602,800	616,600
Tangible Book Value	5,444,400	4,929,800	1,338,600	1,322,300
Invested Capital	9,608,700	4,946,700	1,367,100	1,361,800
Working Capital	9,357,100	4,689,600	1,039,700	984,600
Net Tangible Assets	5,444,400	4,929,800	1,338,600	1,322,300
Capital Lease Obligations	197,600	393,800	574,300	577,100
Common Stock Equity	5,444,400	4,929,800	1,338,600	1,322,300
Total Capitalization	9,608,700	4,936,400	1,356,300	1,351,000
Total Equity Gross Minority Interest	5,444,400	4,929,800	1,338,600	1,322,300
Stockholders Equity	5,444,400	4,929,800	1,338,600	1,322,300
Gains Losses Not Affecting Retained Earnings	-65,700	-94,000	-83,600	-71,900
Other Equity Adjustments	-65,700	-94,000	-83,600	-71,900
Retained Earnings	205,200	-81,500	-212,800	-219,500
Additional Paid In Capital	5,304,700	5,105,100	1,634,900	1,613,600
Common Stock	200	200	100	100
Total Liabilities Net Minority Interest	4,944,000	945,600	1,370,400	1,791,100
Total Non Current Liabilities Net Minority Interest	4,289,500	280,200	435,900	452,000
Other Non Current Liabilities	15,100	24,100	31,600	40,900
Long Term Debt And Capital Lease Obligation	4,274,400	256,100	404,300	411,100
Long Term Capital Lease Obligation	110,100	249,500	386,600	382,400
Long Term Debt	4,164,300	6,600	17,700	28,700
Current Liabilities	654,500	665,400	934,500	1,339,100
Other Current Liabilities	242,900	126,900	155,000	192,200
Current Deferred Liabilities	91,400	109,000	128,600	211,900
Current Deferred Revenue	91,400	109,000	128,600	211,900
Current Debt And Capital Lease Obligation	87,500	154,600	198,500	205,500
Current Capital Lease Obligation	87,500	144,300	187,700	194,700
Current Debt		10,300	10,800	10,800	4,100
Other Current Borrowings		10,300	10,800	10,800	4,100
Pensionand Other Post Retirement Benefit Plans Current	32,100	51,400	54,600	95,600
Payables And Accrued Expenses	200,600	223,500	397,800	633,900
Current Accrued Expenses	35,100	49,700	49,000	74,300
Payables	165,500	173,800	348,800	559,600
Total Tax Payable	18,400	25,200	24,800	28,300
Accounts Payable	147,100	148,600	324,000	531,300
Total Assets	10,388,400	5,875,400	2,709,000	3,113,400
Total Non Current Assets	376,800	520,400	734,800	789,700
Other Non Current Assets	58,400	60,000	66,800	74,100
Non Current Deferred Assets	86,800	18,100	17,300	18,300
Non Current Deferred Taxes Assets	86,800	18,100	17,300	18,300
Goodwill And Other Intangible Assets					12,100
Other Intangible Assets					12,100
Net PPE	231,600	442,300	650,700	697,300
Accumulated Depreciation	-488,200	-684,200	-851,200	-1,006,800
Gross PPE	719,800	1,126,500	1,501,900	1,704,100
Construction In Progress	5,200	5,400	5,400	19,000
Other Properties	183,300	374,100	555,800	560,800
Machinery Furniture Equipment	352,000	442,800	556,600	686,400
Buildings And Improvements			384,100	437,300	457,800
Land And Improvements			0	600	4,200
Properties	179,300	304,200	384,100	0
Current Assets	10,011,600	5,355,000	1,974,200	2,323,700
Other Current Assets	34,600	39,000	51,400	96,300
Assets Held For Sale Current	146,500	0
Restricted Cash					33,100
Prepaid Assets					238,200
Inventory	403,300	480,200	632,500	682,900
Finished Goods	403,300	480,200	632,500	682,900
Receivables	413,400	60,900	91,000	153,900
Other Receivables	368,400
Accounts Receivable	45,000	60,900	91,000	153,900
Allowance For Doubtful Accounts Receivable	-4,200	-4,700	-4,400	-2,200
Gross Accounts Receivable	49,200	65,600	95,400	156,100
Cash Cash Equivalents And Short Term Investments	9,013,800	4,774,900	1,199,300	1,390,600
Other Short Term Investments	2,709,100	18,000	277,600	251,600
Cash And Cash Equivalents	6,304,700	4,756,900	921,700	1,139,000

Cash Flow

	2026	2025	2024	2023	2022
Free Cash Flow	597,300	129,600	-238,600	52,300
Repayment Of Debt	-11,900	-10,800	-10,700	-3,900
Issuance Of Debt	4,200,000	0	0	0
Issuance Of Capital Stock	0	3,453,800	0	0
Capital Expenditure	-17,500	-16,100	-34,900	-55,900
Interest Paid Supplemental Data	48,300	1,200	3,200	2,600
Income Tax Paid Supplemental Data	37,100	6,200	6,200	13,500
Other Cash Adjustment Outside Changein Cash	-22,500	0	0
Beginning Cash Position	4,789,800	938,900	1,196,000	1,319,900
Effect Of Exchange Rate Changes	9,600	-2,900	-8,600	-1,500
Changes In Cash	1,551,200	3,853,800	-248,500	-122,400
Financing Cash Flow	4,146,200	3,443,000	-11,600	-7,900
Cash Flow From Continuing Financing Activities	4,146,200	3,443,000	-11,600	-7,900
Net Other Financing Charges	-42,100				-3,000
Proceeds From Stock Option Exercised	200	0	-900	-4,000
Net Common Stock Issuance	0	3,453,800	0	0
Common Stock Issuance	0	3,453,800	0	0
Net Issuance Payments Of Debt	4,188,100	-10,800	-10,700	-3,900
Net Short Term Debt Issuance			0	0	-25,000
Short Term Debt Payments			0	0	-25,000
Net Long Term Debt Issuance	4,188,100	-10,800	-10,700	-3,900
Long Term Debt Payments	-11,900	-10,800	-10,700	-3,900
Long Term Debt Issuance	4,200,000	0	0	0
Investing Cash Flow	-3,209,800	265,100	-33,200	-222,700
Cash Flow From Continuing Investing Activities	-3,209,800	265,100	-33,200	-222,700
Net Other Investing Changes	-511,900	3,500		600	-2,800
Net Investment Purchase And Sale	-2,680,300	255,400	-14,200	-249,300
Sale Of Investment	90,200	316,800	312,600	27,500
Purchase Of Investment	-2,770,500	-61,400	-326,800	-276,800
Net Business Purchase And Sale	-400	7,000	0	0
Sale Of Business	0	7,000	0	0
Purchase Of Business	-400	0	0
Net Intangibles Purchase And Sale	0	0	2,800	81,900
Sale Of Intangibles	0	0	2,800	81,900
Net PPE Purchase And Sale	300	15,300	13,100	0
Sale Of PPE	300	15,300	13,100	0
Capital Expenditure Reported	-17,500	-16,100	-34,900	-55,900
Operating Cash Flow	614,800	145,700	-203,700	108,200
Cash Flow From Continuing Operating Activities	614,800	145,700	-203,700	108,200
Change In Working Capital	600	-42,900	-295,800	288,900
Change In Other Working Capital	-10,600	5,300	-10,500	167,500
Change In Other Current Liabilities	-14,800	3,000	-2,900	0
Change In Payables And Accrued Expense	800	-179,500	-397,700	-66,200
Change In Prepaid Assets	6,600	4,900	10,400	-25,200
Change In Inventory	12,600	94,500	39,900	229,600
Change In Receivables	6,000	28,900	65,000	-16,800
Other Non Cash Items	31,600	1,200	800	1,200
Stock Based Compensation	26,700	16,400	22,200	40,100
Asset Impairment Charge	53,800	9,700	4,800	36,700
Deferred Tax	-66,700	-1,800	-100	-2,600
Deferred Income Tax	-66,700	-1,800	-100	-2,600
Depreciation Amortization Depletion	14,600	38,900	56,200	61,700
Depreciation And Amortization	14,600	38,900	56,200	61,700
Amortization Cash Flow		500	900	1,400	3,600
Amortization Of Intangibles		500	900	1,400	3,600
Depreciation		38,400	55,300	60,300	73,600
Operating Gains Losses	135,800	-7,100	1,500	-4,700
Gain Loss On Sale Of PPE	4,200	-7,100	1,500	-4,700
Net Income From Continuing Operations	418,400	131,300	6,700	-313,100

3/7

Graham Score

Speculative Investor

Fails most of Graham's safety criteria. Treat with caution.

Graham's Fair Value

$14.50

Margin of Safety

Market Cap / Net Assets

1.8x

Net Assets: $5.4B

Warren's Owner Earnings

$450M

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅

Adequate Size

Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.

$3.6B

vs > $1.5B revenue

✅

Strong Financial Condition

Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.

15.30x

vs Current Ratio > 2.0x

❌

Earnings Stability

Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.

1 loss years (4 yrs data)

vs No negative EPS years

❌

Dividend Record

Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.

No dividend

vs Uninterrupted dividends

✅

Earnings Growth

EPS grew from $0.02 to $0.77 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.

+3750.0% EPS growth

vs > 33% EPS growth

❌

Moderate P/E Ratio

Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.

16.1x

vs P/E ≤ 15.0x

❌

Moderate Price-to-Book

Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.

1.77x P/B (P/E×P/B: 28.5)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

These metrics estimate what GameStop Corp. is worth based on fundamentals — independent of what the market prices it at. Graham's Fair Value and NCAV are conservative floors. EPV assumes zero growth. These are reference points, not price targets.

Net Current Asset Value

$11.29

Trading at 1.9x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$7.08

Per share, no-growth floor. Compare to current price.

ROIC — Return on Invested Capital

2.3%

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Cash Flow Analysis

Metric	2026	2025	2024	2023	2022
Capital Expenditure % of Net Income	4.2%	12.3%	520.9%	N/A	N/A
Repurchase of Capital Stock	N/A	N/A	N/A	N/A	$0M
Free Cash Flow	$597M ▲	$130M ▲	-$239M ▼	$52M •	N/A •
Warren's Owner Earnings	$450M	$186M	$98M	-$196M	N/A

Peers & Industry Comparison

Specialty Retail — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
GME	$21.52	$9.7B	16.06	33.0%	11.5%	$3.6B
WMT Walmart Inc.	$117.18	$932.5B	41.3	25.0%	3.1%	$725.3B
TGT Target Corporation	$130.74	$59.4B	17.3	28.1%	3.2%	$106.4B
COST Costco Wholesale Corporation	$951.45	$421.9B	48.0	12.9%	3.0%	$293.6B
HD Home Depot, Inc. (The)	$334.28	$333.3B	23.7	33.1%	8.4%	$166.6B
LOW Lowe's Companies, Inc.	$222.20	$124.6B	18.8	33.3%	7.5%	$88.4B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

8.83%

Moderate — some alignment with shareholders

Return on Equity (ROE)

7.7%

Weak — poor returns on equity

Return on Assets (ROA)

4.0%

Fair — average asset utilization

Debt Trend YoY

+962.1% YoY

Debt is growing — management is leveraging up

Leadership Team

Ryan Cohen

President, CEO & Executive Chairman

Age 39

Pay: $1,760,467

0.421% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.00%	35,881,670
Vanguard Capital Management LLC	4.06%	18,217,575
Vanguard Portfolio Management LLC	3.88%	17,419,019
State Street Corporation	2.82%	12,642,257
Geode Capital Management, LLC	1.69%	7,579,578
Marshall Wace LLP	1.08%	4,834,476
Dimensional Fund Advisors LP	0.87%	3,909,284
Charles Schwab Investment Management, Inc.	0.80%	3,598,734

Risk Analysis

Beta (Market Risk)

1.77

High volatility — moves more than the market

Short Interest

14.4% of float

Moderate short interest

Debt-to-Equity

0.74x

Conservative balance sheet — low financial risk

Current Ratio

12.40x

Strong liquidity — Graham approved

52-Week Price Range

Low: $19.93 Current: $21.52 High: $28.10

Currently at 19% of 52-week range

GameStop Corp.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Market Cap / Net Assets

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

ROIC — Return on Invested Capital

Cash Flow Analysis

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis