£1482.8m market cap
4562p last close
Games Workshop is a leading international specialist designer, manufacturer and multi-channel retailer of miniatures, scenery, artwork and fiction for tabletop miniature games set in its fantasy Warhammer worlds.
Investment summary
Games Workshop (GAW) has bucked wider consumer trends and delivered a third consecutive year of record sales and earnings growth. FY19 sales and PBT increased by 15.9% and 9.5% respectively, comfortably ahead of closing guidance. The company continues to leverage its rich IP via relationships with the major digital gaming publishers. Royalty income rose by 18% to £11.4m in the period. Dividends of £50.3m (155p per share) were paid during FY19, leaving net cash of £29.4m at year end (2018: £28.5m). A further 30p dividend was declared alongside the results announcement, to be paid on 13 September 2019. Our modest forecast assumptions, which have not materially changed, drive a DCF valuation of 4,703p.
Y/E May |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 221.3 | 86.5 | 74.3 | 181.6 | 25.1 | 21003.2 |
| 2019A | 256.6 | 97.1 | 81.3 | 200.8 | 22.7 | 20389.7 |
| 2020E | 267.6 | 103.4 | 85.2 | 210.3 | 21.7 | 17286.2 |
| 2021E | 278.9 | 108.6 | 89.8 | 221.7 | 20.6 | 16252.1 |
| Last updated on 16/09/2019 | ||||||
Industry outlook
Games Workshop is the global leader for tabletop miniature gaming, a market it created. Tabletop miniature gaming is the fastest-growing segment of the global non-digital games market, which is expected to grow at a CAGR of 9% between 2017 and 2023 and reach a value exceeding $12bn.
Last updated on 16/09/2019
Sector |
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| Consumer |
Share price graph
Balance sheet |
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| Forecast net cash (£m) | 40.8 |
| Forecast gearing ratio (%) | N/A |
Price performance
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1m |
3m |
12m |
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Key management |
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| Kevin Rountree | CEO |
| Rachel Tongue | CFO |
