Deep Value: cash covers more than 100% of the stock price

This company holds roughly $8.4B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

GameStop

GME

Specialty Retail · Consumer Cyclical

Price

$18.21

+0.17 (+0.94%)

Market Cap

$8.17B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through May 2, 2026

How the score breaks down

Quality

Mixed

Growth

Strong

Cash Flow

Strong

Stability

Strong

Valuation

Good

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Share count rising — dilution

+89.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 290.4M (2022) → 549.1M (2026)

Winston Score History

The full picture

GameStop is a retail chain that sells video games, gaming consoles, controllers, and accessories. It operates physical stores mostly in the United States, with additional locations in Canada, Australia, and Europe. The company also sells pre-owned games and hardware, which has historically been a key part of its business model.

GameStop makes money primarily through in-store and online sales of new and used gaming products. The company has been shrinking for years as more gamers buy and download games digitally, cutting out the need for a physical store. GameStop has been closing stores and building up a large cash reserve, but it has not yet found a clear new business to replace its declining core retail operations. The main risk is that digital game downloads continue to grow, which would further reduce customer traffic and make it harder for the company to stay profitable long-term.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-13.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-3.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

8.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$9.0B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

GameStop's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

40.7%

Healthy — 40.7% gross margin

Profit after running costs

Operating Margin

17.2%

Healthy — 17.2% operating margin

Return on the money invested

ROCE

4.0%

Weak — 4.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+1.6%

Nearly flat sales (+1.6% YoY)

Profit growth

EPS YoY

+263.2%

Earnings growing fast (+263.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

100%

Turns 100% of profit into real cash

Spare cash per sale

FCF Margin

19.8%

Converts sales into free cash efficiently (19.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.71

Moderate — manageable debt (0.71)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

10.7x

Attractive valuation — P/E 10.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-4.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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