£2275.8m market cap
6965p 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
Interim results in January were ahead of expectations with revenue growth of 19% and PBT growth of 44%. By channel, revenue growth was strongest in the highest-margin channels, Trade and Online, which led to a strong drop through of incremental revenue to gross profit of 83%. Following upgrades of 9% after the trading update in November 2019, we upgrade our forecast PBT for FY20 and FY21 by 3% to reflect the H120 performance. Our DCF-based valuation is 5,748p.
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 | 38.4 | 32537.7 |
| 2019A | 256.6 | 97.1 | 81.3 | 200.8 | 34.7 | 31462.8 |
| 2020E | 286.4 | 124.3 | 95.6 | 235.8 | 29.5 | 22478.6 |
| 2021E | 300.8 | 130.7 | 101.3 | 250.0 | 27.9 | 20903.3 |
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 18/02/2020
Sector |
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| Consumer |
Share price graph
Balance sheet |
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|---|---|
| Forecast net cash (£m) | 21.4 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
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Key management |
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| Kevin Rountree | CEO |
| Rachel Tongue | CFO |
