GameStop Corp. (GME): a likely value trap?

Avoid — the "profits" are Bitcoin/eBay-stake investment gains, not the retail business, which keeps shrinking and dilution keeps coming.

⚠ TRAP Fundamentals67/100

Down 76% from its all-time high of $81.25 — now $19.23

Why GME dropped

GameStop's core video game retail business keeps declining, and the recent stock drop was triggered by a $1.4 billion debt-for-equity swap announcement that dilutes shareholders, plus ongoing declines tied to its risky Bitcoin treasury strategy.

Fwd P/E 14.2Op margin 16.6%Rev growth 14.1%Debt/equity 74.3%Analyst upside —

How this scored 67/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 20.4%

✅ Generates cash Free cash flow $-1.3B

✅ Not drowning in debt Debt/equity 74.3% (limit 200%)

✅ Can pay its bills Current ratio 12.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 18/25

Operating margin 16.6% 6/9

Net profit margin 20.4% 8/8

Return on equity 14.1% 4/8

Growth Is it getting bigger, or dying? 16/25

Revenue growth 14.1% 6/9

Earnings growth 633.3% 8/8

Expected profit change 2.2% 2/8

Value Is it cheap right now? 18/25

Forward P/E 14.2 8/10

PEG ratio 0.3 8/8

Analyst target upside unknown 2/7

Balance sheet Will it survive? 15/25

Debt / equity 74.3% 7/10

Current ratio 12.4 8/8

Free cash flow $-1.3B 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-04. Research only — not financial advice.