£2254.6m market cap
6775p 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’s (GAW) interim results are ahead of expectations. The highest rates of revenue growth were achieved in the channels with the highest operating margins, ie Trade (40% margin) and Online (64% margin). This has produced a strong improvement in free cash flow generation and ROCE has improved from 96% to 111%. We upgrade our forecasts for FY20 and FY21 by a further 3% following the 9% upgrade in November. Our DCF-based valuation increases by 11% to 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 | 38.0 | 32234.0 |
| 2019A | 256.6 | 97.1 | 81.3 | 200.8 | 34.4 | 31169.2 |
| 2020E | 286.4 | 124.3 | 95.6 | 235.8 | 29.3 | 22268.8 |
| 2021E | 300.8 | 130.7 | 101.3 | 250.0 | 27.6 | 20708.3 |
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 23/01/2020
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 |
