Stock Analysis on Net

GameStop Corp. (NYSE:GME)

$22.49

This company has been moved to the archive! The financial data has not been updated since June 11, 2024.

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

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Free Cash Flow to The Firm (FCFF)

GameStop Corp., FCFF calculation

US$ in thousands

Microsoft Excel
12 months ended: Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
Net income (loss)
Net noncash charges
Changes in operating assets and liabilities
Net cash flows provided by (used in) operating activities
Cash paid for interest, net of tax1
Capital expenditures
Proceeds from sale of property and equipment
Free cash flow to the firm (FCFF)

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).


Net Cash Flows Provided by (Used in) Operating Activities
The operating cash flows display significant volatility over the observed periods. Starting with a positive cash inflow of 325,100 thousand US dollars in early 2019, the figure sharply declined to a negative cash flow of 414,500 thousand US dollars in early 2020. The year 2021 saw a recovery with cash flows returning to a positive 123,700 thousand US dollars, only to drop again to a negative 434,300 thousand US dollars in 2022. In 2023, the cash flow improved to a positive 108,200 thousand US dollars before declining once more to a negative 203,700 thousand US dollars in early 2024. This pattern indicates inconsistent operating performance with notable cash outflows causing fluctuations in operational liquidity.
Free Cash Flow to the Firm (FCFF)
The FCFF also follows a highly variable trend similar to operating cash flows. The firm started with a positive FCFF of 273,665 thousand US dollars in 2019, followed by a steep decline into negative territory at -458,635 thousand US dollars in 2020. A strong rebound occurred in 2021, with FCFF rising to 185,276 thousand US dollars before dipping dramatically to -478,659 thousand US dollars in 2022. The year 2023 exhibited positive free cash flow of 54,354 thousand US dollars, but this was again followed by a downturn to -223,865 thousand US dollars in early 2024. The FCFF fluctuations denote ongoing challenges in generating consistent free cash flow, indicating that investment and operating activities have not stabilized to produce reliable surplus cash.
Summary of Cash Flow Trends
Both operating cash flows and free cash flow to the firm demonstrate persistent instability marked by alternating positive and negative results. The oscillating nature of cash flows suggests variable operational effectiveness and capital expenditure patterns that significantly impact liquidity. Notably, the negative values in multiple years point to periods of cash consumption rather than generation, highlighting potential areas of concern regarding sustainable cash management and operational efficiency.

Interest Paid, Net of Tax

GameStop Corp., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
12 months ended: Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
Effective Income Tax Rate (EITR)
EITR1
Interest Paid, Net of Tax
Cash paid for interest, before tax
Less: Cash paid for interest, tax2
Cash paid for interest, net of tax

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

1 See details »

2 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =


Effective Income Tax Rate (EITR)
The effective income tax rate exhibited relative stability around the 20-21% range from fiscal years 2019 through 2021. A marked deviation occurred in 2022 when the rate dropped substantially to 3.6%, indicating a significant reduction in tax burden for that year. However, the rate reverted to 21% in 2023 and then surged sharply to 48.9% in 2024, suggesting a substantial increase in the effective tax rate during the most recent period.
Cash Paid for Interest, Net of Tax
There is a clear downward trend in cash paid for interest, net of tax over the six-year period. Starting from $42,265 thousand in 2019, the amount consistently decreased year over year to reach $1,635 thousand in 2024. This steady decline may indicate improvements in debt management, reduced interest expense, or refinancing strategies leading to lower interest payments.

Enterprise Value to FCFF Ratio, Current

GameStop Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
Amazon.com Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
TJX Cos. Inc.
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail
EV/FCFF, Industry
Consumer Discretionary

Based on: 10-K (reporting date: 2024-02-03).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

GameStop Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1
Free cash flow to the firm (FCFF)2
Valuation Ratio
EV/FCFF3
Benchmarks
EV/FCFF, Competitors4
Amazon.com Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
TJX Cos. Inc.
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail
EV/FCFF, Industry
Consumer Discretionary

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =

4 Click competitor name to see calculations.


Enterprise Value (EV)
The enterprise value showed a notable increase from 231,346 thousand USD in early 2019 to a peak of 12,565,736 thousand USD in early 2021. This was followed by a sharp decline to 5,469,679 thousand USD in early 2022. Subsequently, the EV experienced modest fluctuations, decreasing to 5,702,136 thousand USD in early 2023 and further falling to 3,570,235 thousand USD by early 2024. Overall, the trend illustrates a dramatic rise and fall within the period, with the latest figures significantly lower than the peak in 2021 but still substantially higher than the pre-2019 level.
Free Cash Flow to the Firm (FCFF)
The FCFF exhibited considerable volatility over the analyzed period. Starting at a positive 273,665 thousand USD in early 2019, it shifted to a negative cash flow of -458,635 thousand USD by early 2020. In 2021, there was a recovery to a positive 185,276 thousand USD, followed by a return to negative cash flow, -478,659 thousand USD in early 2022. The subsequent years showed some improvement with a positive 54,354 thousand USD in early 2023, yet it declined again to negative -223,865 thousand USD by early 2024. This pattern indicates unstable operational cash generation, alternating between positive and negative values without a consistent trend.
EV/FCFF Ratio
The EV/FCFF ratio exhibited extreme variability, reflective of fluctuations in both enterprise value and free cash flow. Initially, the ratio was low at 0.85 in early 2019, with data missing for early 2020 and 2022. It surged to 67.82 in early 2021 and increased further to 104.91 in early 2023, corresponding to the periods when free cash flow was relatively lower or negative. The absence of values for certain years likely stems from negative free cash flow values, which complicate ratio calculation. This ratio's movement underscores periods of diminished cash generation relative to enterprise valuation, especially during 2021 and 2023.