GameStop Corp. (NYSE:GME)

Price to Earnings (P/E) Ratio

The P/E ratio is only available for the most recent two periods, showing extremely high values of 707.62 and 430.07. These elevated ratios suggest that the company's earnings are very low relative to its stock price, indicating either expectations of significant future growth or current earnings challenges.

Price to Sales (P/S) Ratio

The P/S ratio demonstrated a gradual increase from mid-2019, starting at 0.07 and remaining relatively low through early 2020. A sharp increase occurred in late 2020 and early 2021, peaking at 4.06 in May 2021. After this peak, there was a downward trend, with the ratio declining steadily to 0.79 by October 2023. However, a notable rebound to 2.18 was observed by May 2024. This pattern suggests a period of increased market valuation relative to sales in early 2021, followed by a correction and more recent renewed investor interest.

Price to Book Value (P/BV) Ratio

The P/BV ratio remained modest from mid-2019 through mid-2020, ranging from 0.45 to 1.36. Beginning in late 2020, this ratio escalated sharply, peaking at 29.11 in January 2021 and remaining elevated with values above 20 for some periods thereafter. Following this peak, a gradual decline occurred, with the ratio decreasing to 3.54 by October 2023 before increasing again to 8.19 in May 2024. The elevated P/BV ratios in early 2021 indicate high market valuation relative to book value during that time, with subsequent normalization and recent upticks reflecting market volatility or changing investor perceptions.

General Observations

Overall, the data exhibits significant volatility and episodic spikes in market valuation multiples beginning in late 2020 and peaking around early 2021. These spikes are visible across P/S and P/BV ratios, indicating heightened investor optimism or speculative activity. Following these peaks, a period of correction and stabilization ensued, although recent figures show some renewed upward movement. The very high and volatile P/E ratio values in the most recent quarters further highlight discrepancies between stock price and earnings, suggesting that earnings are weak compared to share price or that investors anticipate substantial future earnings growth.

The analyzed financial trends indicate significant fluctuations in the company's stock performance and profitability metrics over the observed quarterly periods.

Share Price

The share price exhibited a relatively stable phase at low levels, generally below US$2.00, from May 2019 through August 2020. Starting in October 2020, the share price experienced a remarkable surge, reaching a peak of approximately US$75.64 in May 2021. Following this peak, there was a marked decline, with prices falling to around US$14.84 by October 2023. More recently, from October 2023 to May 2024, the share price demonstrates a recovery trend, increasing to approximately US$30.49. This pattern suggests a period of rapid growth and heightened market interest around late 2020 to mid-2021, followed by a correction and partial rebound.

Earnings per Share (EPS)

EPS recorded consistent negative values throughout most of the period under review, indicating ongoing losses. Initially, EPS was notably negative, with values reaching as low as -3.00 in August 2019. From late 2020 onward, the magnitude of negative EPS decreased, moving closer to break-even. The data show a transition from negative earnings to slightly positive EPS starting in February 2024, with a modest increase to US$0.07 by May 2024. This gradual improvement suggests an incremental recovery in underlying profitability or operational performance.

Price-to-Earnings (P/E) Ratio

The P/E ratio data are mostly missing in early periods, likely due to negative EPS values which preclude meaningful P/E calculations. Notably, in early 2024, corresponding to when EPS approached positive territory, very high P/E values are observed (above 400 and 700), reflecting market pricing relative to minimal positive earnings. These elevated ratios indicate either expectations of rapid future growth or volatility in earnings metrics.

In summary, the period reflects an initial phase of low stock prices with continued losses, transitioning into a speculative spike in share price, followed by correction and stabilization. The company’s earnings showed steady improvement from deep losses toward profitability over time. The late emergence of positive EPS values combined with extremely high P/E ratios implies cautious optimism in earnings quality but signals high valuation relative to current profits.

Share Price Trends

The share price displayed significant volatility over the reported periods. Initially, from May 2019 to October 2020, the share price remained relatively low, fluctuating between $1.06 and $4.24, indicating a subdued market valuation. Starting in late 2020, the price experienced a dramatic increase, peaking at $75.64 in May 2021. Following this peak, a decline ensued, with the share price dropping to a low of $14.84 by October 2023. Thereafter, a modest recovery took place, and the share price increased again to $30.49 by May 2024.

Operating Profit per Share (OPPS) Trends

The operating profit per share remained negative throughout all periods, indicating persistent operational losses. The magnitude of losses was highest in mid-2019, with a trough of -$3.26 per share in August 2019. Post this period, the negative values moderated progressively, reaching near break-even levels of -$0.08 per share by May 2024. The trend suggests a consistent improvement in operational efficiency or profitability, although profitability has not yet been achieved.

Relationship between Share Price and Operating Profit per Share

Despite consistent operational losses, the share price exhibited notable appreciation, particularly from late 2020 to mid-2021. The surge in market valuation during this period was not directly supported by improvements in operating profitability, which remained negative. This divergence may indicate that external factors such as market speculation, investor sentiment, or other non-operational considerations influenced the share price movement. Following the peak in share price, the market revaluation corrected downward as operational losses persisted even as they improved.

Overall Insights

The financial data reveals a company experiencing chronic operating losses but gradually reducing these losses over time. Market valuation has been highly volatile and at times disconnected from operational performance. The recent trend of narrowing operating losses combined with a moderate recovery in share price may reflect an improving outlook or market confidence. However, profitability remains an unresolved issue that warrants continued attention.

Share Price Trend

The share price remained relatively low and stable from May 2019 through August 2020, fluctuating between $1.06 and $4.24. A significant surge began in October 2020, peaking at $75.64 in May 2021. Following this peak, the price experienced a notable decline and considerable volatility, stabilizing within the $14.84 to $30.49 range from October 2023 through May 2024.

Sales Per Share Trend

Sales per share demonstrated a declining trend over the observed periods. Beginning at $19.67 in May 2019, sales per share peaked at $27.82 in November 2019, then gradually declined with minor fluctuations, reaching $14.00 by May 2024. The gradual decrease indicates diminishing revenue generation per share over time.

Price to Sales (P/S) Ratio Analysis

The price-to-sales ratio was notably low, ranging between 0.04 and 0.09 until August 2020, reflecting low market valuation relative to sales. A sharp increase occurred starting October 2020, reaching a peak of 4.06 in May 2021, coinciding with the share price surge. Afterward, the ratio declined but remained higher than the early period, fluctuating between 0.79 and 2.18 through May 2024, indicating market valuation relative to sales continued at elevated levels compared to the pre-surge period.

Overall Insights

The company experienced a dramatic market valuation spike beginning in late 2020, with share prices and P/S ratios rising sharply despite declining sales per share. This suggests a disconnection between market price and fundamental sales performance during that period. Post-peak, both market valuation metrics declined but maintained levels well above historical norms, while sales per share continued to weaken. The recent fluctuations in share price and P/S ratio indicate continued volatility and an uncertain market perception relative to the company’s underlying sales performance.

The analysis of the quarterly financial data reveals significant fluctuations in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the reported periods.

Share Price Trends

The share price initially remained relatively low and stable, fluctuating below $2.00 until late 2020. Starting from October 2020, a notable surge occurred, peaking at $75.64 in May 2021. Following this peak, there was a gradual decline with intermittent increases, leading to a share price of $30.49 in May 2024. This pattern suggests a period of heightened market interest and volatility beginning in late 2020, followed by a partial correction and stabilization at a level significantly higher than the pre-surge prices.

Book Value Per Share (BVPS) Performance

The BVPS showed a decline from $3.16 in May 2019 to a low of $1.19 in October 2020, indicating a reduction in the net asset value on a per-share basis during this period. Subsequently, BVPS experienced a recovery phase, rising to a peak of $6.05 in May 2021. Afterward, BVPS gradually decreased to $3.72 by May 2024. The fluctuations in BVPS suggest variability in the company's underlying net asset position, with a pronounced dip before a strong recovery and then moderate decline over the recent quarters.

Price-to-Book Value (P/BV) Ratio Dynamics

The P/BV ratio exhibited dramatic shifts indicative of changing market valuation relative to the company's book value. Early periods showed ratios well below 1.0, signifying the share price was lower than the book value per share. Starting in August 2020, the ratio spiked sharply to a high of 29.11 in January 2021, coinciding with the peak in share price and preceding the peak in BVPS. Following this extreme valuation, the ratio declined but remained elevated relative to early periods, fluctuating between approximately 3.5 and 8.2 by May 2024. Such elevated ratios reflect market premiums placed on the company well above its book value during and after the surge period.

Overall, the data depict a transforming market perception and valuation of the company beginning in late 2020, notably impacting share prices and valuation multiples. The marked increase and subsequent adjustments in share price and P/BV ratio, combined with variability in BVPS, suggest phases of heightened speculation, increased investor activity, and adjustments toward more moderate valuations over the longer term.