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 solid track record.

Risks

  • Games Workshop Group is covered by less than 3 analysts.

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


Market Performance


7 Day Return

4.5%

LSE:GAW

2.6%

GB Leisure

0.05%

GB Market


1 Year Return

26.4%

LSE:GAW

13.3%

GB Leisure

-0.7%

GB Market

GAW outperformed the Leisure industry which returned 13.3% over the past year.

GAW outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.7% over the past year.


Share holder returns

GAWIndustryMarket
7 Day4.5%2.6%0.05%
30 Day13.1%4.9%3.5%
90 Day1.5%-4.5%-0.1%
1 Year31.9%26.4%19.5%13.3%4.1%-0.7%
3 Year1106.6%866.8%164.1%120.4%21.2%6.7%
5 Year1040.2%698.0%206.3%142.7%31.5%3.8%

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 based on future cash flows and its price relative to the stock market?

23.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Games Workshop Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Games Workshop Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Games Workshop Group is overvalued based on earnings compared to the Europe Leisure industry average.

Games Workshop Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Games Workshop Group is poor value based on expected growth next year.


Price Based on Value of Assets

Games Workshop Group is overvalued based on assets compared to the GB Leisure industry average.


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Games Workshop Group's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Games Workshop Group's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Games Workshop Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Games Workshop Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Games Workshop Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Games Workshop Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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


Past Earnings Growth Analysis

Games Workshop Group has delivered over 20% year on year earnings growth in the past 5 years.

Games Workshop Group's 1-year earnings growth is less than its 5-year average (10.8% vs 44.8%)

Games Workshop Group's earnings growth has exceeded the Europe Leisure industry average in the past year (10.8% vs 9%).


Return on Equity

Games Workshop Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Games Workshop Group used its assets more efficiently than the Europe Leisure industry average last year based on Return on Assets.


Return on Capital Employed

Games Workshop Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Games Workshop Group's financial position?


Financial Position Analysis

Games Workshop Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Games Workshop Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Games Workshop Group has no debt.

Games Workshop Group has not taken on any debt in the past 5 years.

Games Workshop Group has no debt, it does not need to be covered by operating cash flow.

Games Workshop Group has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Games Workshop Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

3.16%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Games Workshop Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

Games Workshop Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.49%).

Games Workshop Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Games Workshop Group only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


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?

4.7yrs

Average management tenure


CEO

Kevin Rountree (49yo)

4.7yrs

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

Kevin's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Kevin's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

49yo

Average Age

The tenure for the Games Workshop Group management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

The tenure for the Games Workshop Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Games Workshop Group individual insiders in the past 3 months, but not in substantial volumes.


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
BuyUK£107,74802 Oct 18
Kevin Rountree
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares2,761
Max PriceUK£39.03
BuyUK£65,71802 Oct 18
Rachel Tongue
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director
Shares1,684
Max PriceUK£39.03

Ownership Breakdown


Management Team

  • Tom Kirby (69yo)

    Consultant

    • Tenure: 2yrs
    • Compensation: UK£71.00k
  • Kevin Rountree (49yo)

    CEO & Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£1.08m
  • Rachel Tongue (48yo)

    Group Finance Director

    • Tenure: 4.7yrs
    • Compensation: UK£632.00k
  • Max Bottrill

    Head of Product & Supply

    • Tenure: 0yrs

Board Members

  • Chris Myatt (75yo)

    Senior Independent Director

    • Tenure: 23.4yrs
    • Compensation: UK£60.00k
  • Nick Donaldson (65yo)

    Non-Executive Chairman

    • Tenure: 2yrs
    • Compensation: UK£140.00k
  • Kevin Rountree (49yo)

    CEO & Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£1.08m
  • Rachel Tongue (48yo)

    Group Finance Director

    • Tenure: 4.7yrs
    • Compensation: UK£632.00k
  • John Richard Brewis (52yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£49.00k
  • Elaine O’Donnell (47yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£52.00k
  • Kate Marsh (57yo)

    Non-Executive Director

    • Tenure: 0.2yrs

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£1.572b
  • Shares outstanding: 32.50m
  • 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 Analysis2019/09/19 20:33
End of Day Share Price2019/09/19 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.