LSE:GAW

Stock Analysis Report

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Executive Summary

Games Workshop Group PLC, together with its subsidiaries, designs, manufactures, distributes, and retails miniature figures and games in the United Kingdom, Continental Europe, North America, Australia, New Zealand, and Asia.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Games Workshop Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GAW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

GAW

7.6%

GB Leisure

3.7%

GB Market


1 Year Return

73.2%

GAW

46.5%

GB Leisure

-9.5%

GB Market

Return vs Industry: GAW exceeded the UK Leisure industry which returned 46.5% over the past year.

Return vs Market: GAW exceeded the UK Market which returned -9.5% over the past year.


Shareholder returns

GAWIndustryMarket
7 Day-1.3%7.6%3.7%
30 Day29.2%29.8%10.8%
90 Day24.5%16.5%-5.0%
1 Year77.9%73.2%51.2%46.5%-5.1%-9.5%
3 Year691.6%590.6%192.0%149.7%-1.7%-13.7%
5 Year2010.0%1436.9%274.2%200.9%16.4%-9.7%

Price Volatility Vs. Market

How volatile is Games Workshop Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Games Workshop Group undervalued compared to its fair value and its price relative to the market?

31.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GAW (£77) is trading above our estimate of fair value (£37.24)

Significantly Below Fair Value: GAW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GAW is poor value based on its PE Ratio (31.1x) compared to the Leisure industry average (14.1x).

PE vs Market: GAW is poor value based on its PE Ratio (31.1x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GAW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GAW is overvalued based on its PB Ratio (20.7x) compared to the GB Leisure industry average (1.6x).


Next Steps

Future Growth

How is Games Workshop Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GAW's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if GAW's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GAW's revenue (10.3% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: GAW's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GAW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Games Workshop Group performed over the past 5 years?

41.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAW has a high level of non-cash earnings.

Growing Profit Margin: GAW's current net profit margins (28.8%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: GAW's earnings have grown significantly by 41.8% per year over the past 5 years.

Accelerating Growth: GAW's earnings growth over the past year (31.1%) is below its 5-year average (41.8% per year).

Earnings vs Industry: GAW earnings growth over the past year (31.1%) exceeded the Leisure industry -1.6%.


Return on Equity

High ROE: GAW's Return on Equity (66.6%) is considered outstanding.


Next Steps

Financial Health

How is Games Workshop Group's financial position?


Financial Position Analysis

Short Term Liabilities: GAW's short term assets (£84.1M) exceed its short term liabilities (£41.2M).

Long Term Liabilities: GAW's short term assets (£84.1M) exceed its long term liabilities (£22.8M).


Debt to Equity History and Analysis

Debt Level: GAW is debt free.

Reducing Debt: GAW has not had any debt for past 5 years.

Debt Coverage: GAW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GAW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Games Workshop Group's current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAW's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: GAW's dividend (1.62%) is low compared to the top 25% of dividend payers in the UK market (5.55%).


Stability and Growth of Payments

Stable Dividend: GAW's dividend payments have been volatile in the past 10 years.

Growing Dividend: GAW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.5%), GAW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GAW's dividends in 3 years are forecast to be covered by earnings (59.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Kevin Rountree (49yo)

5.42yrs

Tenure

UK£1,077,000

Compensation

Mr. Kevin Derek Rountree has been the Chief Executive Officer of Games Workshop Group plc since January 01, 2015. Mr. Rountree served as Chief Operating Officer of Games Workshop Group plc until January 1, ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD1.36M) is below average for companies of similar size in the UK market ($USD2.39M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Rountree
CEO & Executive Director5.42yrsUK£1.08m0.018% £454.1k
Rachel Tongue
Group Finance Director & Executive Director5.42yrsUK£632.00k0.016% £409.1k
Max Bottrill
Head of Product & Supplyno datano datano data
Ross Matthews
Group Company Secretary0.50yrno datano data

5.4yrs

Average Tenure

48yo

Average Age

Experienced Management: GAW's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Rountree
CEO & Executive Director5.42yrsUK£1.08m0.018% £454.1k
Rachel Tongue
Group Finance Director & Executive Director5.42yrsUK£632.00k0.016% £409.1k
Nicholas Donaldson
Independent Non-Executive Chairman2.75yrsUK£140.00k0.051% £1.3m
John Richard Brewis
Non-Executive Director2yrsUK£49.00kno data
Elaine O'Donnell
Senior Independent Director0.75yrUK£52.00k0.016% £392.2k
Kate Marsh
Non-Executive Director0.92yrno datano data

2.4yrs

Average Tenure

50.5yo

Average Age

Experienced Board: GAW's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Games Workshop Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Games Workshop Group PLC
  • Ticker: GAW
  • Exchange: LSE
  • Founded: 1991
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: UK£2.516b
  • Shares outstanding: 32.68m
  • Website: https://www.games-workshop.com

Number of Employees


Location

  • Games Workshop Group PLC
  • Willow Road
  • Lenton
  • Nottingham
  • Nottinghamshire
  • NG7 2WS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMWK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1994
GAWLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 1994
G7WDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1994
GAWlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 1994

Biography

Games Workshop Group PLC, together with its subsidiaries, designs, manufactures, distributes, and retails miniature figures and games in the United Kingdom, Continental Europe, North America, Australia, New Zealand, and Asia. It operates through Trade, Retail, and Online segments. The company offers games under the Warhammer: Age of Sigmar and Warhammer 40,000 names, as well as Horus Heresy, an off shoot of Warhammer 40,000; and Middle-earth battle games. It also publishes various titles, including short stories, audio dramas, and full length novels under the Black Library name. In addition, company offers painting and modelling products, boxed games, and gifts; and engages in the newsstand and trustee businesses. It provides its products through its retail stores, social media sites, and warhammer-community.com, as well as through Games Workshop and third party gaming events; and physical bookstores, third party online platforms, and its own specialist stores. As of June 2, 2019, the company operated 517 Games Workshop stores in 23 countries. Games Workshop Group PLC was incorporated in 1991 and is headquartered in Nottingham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 20:38
End of Day Share Price2020/06/04 00:00
Earnings2019/12/01
Annual Earnings2019/06/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.