LSE:GAW

Stock Analysis Report

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

Fundamentals

Flawless balance sheet with acceptable 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

4.8%

GAW

3.6%

GB Leisure

-0.4%

GB Market


1 Year Return

88.5%

GAW

49.4%

GB Leisure

4.4%

GB Market

Return vs Industry: GAW exceeded the UK Leisure industry which returned 49.4% over the past year.

Return vs Market: GAW exceeded the UK Market which returned 4.4% over the past year.


Shareholder returns

GAWIndustryMarket
7 Day4.8%3.6%-0.4%
30 Day22.9%17.8%1.8%
90 Day30.2%18.2%3.8%
1 Year96.4%88.5%57.8%49.4%9.9%4.4%
3 Year1117.7%911.7%219.8%167.0%22.4%6.9%
5 Year1388.4%965.2%271.4%187.9%33.0%2.9%

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?

27.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GAW (£56.35) is trading above our estimate of fair value (£45.1)

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 (27.8x) compared to the Leisure industry average (18.7x).

PE vs Market: GAW is poor value based on its PE Ratio (27.8x) compared to the UK market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: GAW is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: GAW is overvalued based on its PB Ratio (17.2x) compared to the GB Leisure industry average (2.3x).


Next Steps

Future Growth

How is Games Workshop Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAW's forecast earnings growth (9.3% per year) is above the savings rate (1.2%).

Earnings vs Market: GAW's earnings (9.3% per year) are forecast to grow slower than the UK market (12.5% per year).

High Growth Earnings: GAW's earnings are forecast to grow, but not significantly.

Revenue vs Market: GAW's revenue (6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GAW's revenue (6% 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?

44.8%

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 (25.7%) are lower than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: GAW's earnings have grown significantly by 44.8% per year over the past 5 years.

Accelerating Growth: GAW's earnings growth over the past year (10.8%) is below its 5-year average (44.8% per year).

Earnings vs Industry: GAW earnings growth over the past year (10.8%) exceeded the Leisure industry 2.5%.


Return on Equity

High ROE: GAW's Return on Equity (61.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Games Workshop Group's financial position?


Financial Position Analysis

Short Term Liabilities: GAW's short term assets (£73.2M) exceeds its short term liabilities (£29.3M)

Long Term Liabilities: GAW's short term assets (73.2M) exceeds its long term liabilities (1.9M)


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

Inventory Level: GAW has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GAW's debt is covered by short term assets.


Next Steps

Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%5.3%industryaverage2.9%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: GAW's dividend (2.22%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: GAW's dividend (2.22%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

Stable Dividend: GAW has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GAW's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.6%), 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 (69.5% payout ratio).


Next Steps

Management

What is the CEO of Games Workshop Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Kevin Rountree (49yo)

4.8yrs

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 ($USD1.39M) is about average for companies of similar size in the UK market ($USD1.82M).

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


Board Age and Tenure

1.8yrs

Average Tenure

50.5yo

Average Age

Experienced Board: GAW's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: GAW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£4,43716 Sep 19
Kevin Rountree
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares95
Max PriceUK£46.71
BuyUK£27,56901 Aug 19
Kevin Rountree
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares577
Max PriceUK£47.78
BuyUK£15,76701 Aug 19
Rachel Tongue
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director
Shares330
Max PriceUK£47.78
BuyUK£5,09403 Jun 19
Kevin Rountree
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares114
Max PriceUK£44.68
BuyUK£3,58204 Mar 19
Kevin Rountree
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares113
Max PriceUK£31.70
SellUK£511,22827 Nov 18
Kevin Rountree
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares17,659
Max PriceUK£28.95

Ownership Breakdown

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


Management Team

  • Kevin Rountree (49yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.08m
  • Rachel Tongue (48yo)

    Group Finance Director

    • Tenure: 4.8yrs
    • Compensation: UK£632.00k
  • Max Bottrill

    Head of Product & Supply

    • Tenure: 0yrs

Board Members

  • Nick Donaldson (65yo)

    Non-Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: UK£140.00k
  • Kevin Rountree (49yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.08m
  • Rachel Tongue (48yo)

    Group Finance Director

    • Tenure: 4.8yrs
    • Compensation: UK£632.00k
  • John Richard Brewis (52yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£49.00k
  • Elaine O’Donnell (47yo)

    Senior Independent Director

    • Tenure: 0.2yrs
    • Compensation: UK£52.00k
  • Kate Marsh (57yo)

    Non-Executive Director

    • Tenure: 0.3yrs

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£1.832b
  • Shares outstanding: 32.51m
  • 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, Ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 20:34
End of Day Share Price2019/11/15 00:00
Earnings2019/06/02
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.