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Games Workshop Group PLC (GB:GAW)
LSE:GAW

Games Workshop (GAW) AI Stock Analysis

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Games Workshop

(LSE:GAW)

78Outperform
Games Workshop exhibits strong financial health with solid profitability and cash flow management. Positive corporate events underscore leadership confidence and strategic growth potential. While the stock is moderately valued, technical indicators suggest a stable upward trend, contributing to a favorable overall outlook.
Positive Factors
Financial performance
Trading has been ahead of expectations, with strong performance across both the core business and licensing.
Partnerships/Agreements
Games Workshop has announced that it has agreed creative guidelines and reached a final agreement with Amazon for the adaptation of Warhammer 40k into films and TV series.
Negative Factors
Market expectations
The shares have had a very good run and continue to justify a premium multiple with upgrades.
Production timeline
Production processes in respect of film/TV may take 'a number of years', but the opportunity is seen as too compelling.

Games Workshop (GAW) vs. S&P 500 (SPY)

Games Workshop Business Overview & Revenue Model

Company DescriptionGames Workshop Group PLC is a UK-based company that designs, manufactures, and sells miniature figures, games, and associated products. It is best known for its Warhammer series, which includes Warhammer Fantasy and Warhammer 40,000. The company operates in the tabletop gaming industry and offers a wide range of products including model kits, rulebooks, paints, and accessories. Games Workshop distributes its products globally through its own retail stores, online platforms, and third-party retailers.
How the Company Makes MoneyGames Workshop primarily generates revenue through the sale of its miniature figures and related products. The company's key revenue streams include direct sales through its network of retail stores and e-commerce platforms, as well as wholesale sales to independent retailers. Licensing agreements also contribute to its revenue, allowing other companies to create video games and other media based on Games Workshop's intellectual properties. Additionally, Games Workshop hosts events and gaming tournaments which help to promote its products and enhance community engagement. The company benefits from a dedicated fan base and a strong brand presence in the tabletop gaming market.

Games Workshop Financial Statement Overview

Summary
Games Workshop showcases strong financial health with impressive profitability metrics and efficient cash flow management. The firm's balance sheet remains solid, though keeping an eye on debt levels is prudent. The company is well-positioned in its industry, supported by consistent revenue growth and operational efficiency.
Income Statement
88
Very Positive
Games Workshop demonstrates strong profitability with a consistent upward trajectory in revenue growth, featuring a gross profit margin of 71.2% and a net profit margin of 28.7% for the latest period. The company has maintained steady EBIT and EBITDA margins, reflecting efficient operations. Continued revenue growth over the years signifies a robust business model.
Balance Sheet
82
Very Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.19, indicating prudent financial management. A substantial equity ratio of 71.6% reflects strong capital structure stability. However, monitoring the slight increase in total debt is advisable to sustain financial health.
Cash Flow
85
Very Positive
Games Workshop's cash flow is strong, with significant free cash flow generation and an operating cash flow to net income ratio of 1.3, indicating efficient cash conversion. The company shows a stable free cash flow with a slight dip in growth, but overall cash flow management remains robust.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
525.70M470.80M414.80M369.50M269.70M
Gross Profit
374.50M319.80M282.70M269.30M177.00M
EBIT
201.80M175.30M159.30M153.40M74.30M
EBITDA
243.30M211.00M169.90M178.10M115.10M
Net Income Common Stockholders
151.10M134.70M128.40M122.00M71.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
107.60M90.20M71.40M85.20M52.90M
Total Assets
351.30M326.80M321.10M281.70M207.60M
Total Debt
47.20M49.90M48.90M47.00M37.00M
Net Debt
-60.40M-40.30M-22.50M-38.20M-15.90M
Total Liabilities
99.90M91.70M86.40M85.40M73.90M
Stockholders Equity
251.40M235.10M234.70M196.30M133.70M
Cash FlowFree Cash Flow
163.60M165.60M89.40M102.90M80.00M
Operating Cash Flow
196.20M193.90M121.70M132.90M104.60M
Investing Cash Flow
-30.10M-28.30M-32.30M-30.00M-24.60M
Financing Cash Flow
-148.50M-146.60M-103.60M-70.00M-56.80M

Games Workshop Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13710.00
Price Trends
50DMA
14267.50
Negative
100DMA
13639.04
Positive
200DMA
12015.83
Positive
Market Momentum
MACD
-18.66
Positive
RSI
48.06
Neutral
STOCH
25.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GAW, the sentiment is Negative. The current price of 13710 is below the 20-day moving average (MA) of 14242.39, below the 50-day MA of 14267.50, and above the 200-day MA of 12015.83, indicating a neutral trend. The MACD of -18.66 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 25.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GAW.

Games Workshop Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBGAW
78
Outperform
£4.52B25.8365.47%3.79%17.40%25.15%
GBIGG
75
Outperform
£3.34B9.7719.85%4.82%6.34%30.64%
GBCRE
68
Neutral
£570.08M5.5212.25%8.20%27.08%-34.38%
59
Neutral
$12.18B11.09-1.08%3.77%1.26%-19.82%
55
Neutral
£83.37M5.2121.85%-6.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GAW
Games Workshop
13,710.00
4,251.49
44.95%
GB:IGG
IG Group Holdings
965.00
275.93
40.04%
GB:FDEV
Frontier Developments
214.00
29.60
16.05%
GB:CRE
Conduit Holdings Ltd
340.00
-133.18
-28.15%

Games Workshop Corporate Events

Regulatory Filings and Compliance
Games Workshop Announces Total Voting Rights Update
Neutral
Apr 1, 2025

Games Workshop Group PLC announced that as of April 1, 2025, it has 32,971,583 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders and those with notification obligations to determine their interest in the company under the Disclosure and Transparency Rules.

DividendsBusiness Operations and Strategy
Games Workshop Leaders Reinforce Commitment with Share Reinvestment
Positive
Mar 24, 2025

Games Workshop announced that both its CEO, Kevin Rountree, and Non-Executive Chair, Mark Lam, have committed to reinvesting all dividends they receive into purchasing company shares under a dividend reinvestment plan. This move signifies strong confidence in the company’s future prospects and aligns the interests of its leadership with those of its shareholders, potentially impacting stakeholder perception positively.

DividendsFinancial Disclosures
Games Workshop Announces Increased Dividend for 2024/25
Positive
Mar 20, 2025

Games Workshop Group PLC has announced a dividend of £1.00 per share, bringing the total dividends declared for the 2024/25 period to £5.20 per share, compared to £4.20 per share in the previous year. This move aligns with the company’s policy to distribute surplus cash and reflects its strong financial performance, potentially enhancing shareholder value and market confidence.

Business Operations and Strategy
FMR LLC Increases Stake in Games Workshop Group PLC
Neutral
Mar 12, 2025

Games Workshop Group PLC has announced a significant change in its shareholder structure, with FMR LLC, a US-based investment management company, increasing its voting rights from 5.01% to 6.47%. This acquisition by FMR LLC, through its subsidiary Fidelity Management & Research Company LLC, signifies a notable shift in the company’s ownership dynamics, potentially impacting its strategic direction and stakeholder interests.

Regulatory Filings and Compliance
Games Workshop Announces Total Voting Rights Update
Neutral
Mar 3, 2025

Games Workshop Group PLC announced that it currently has 32,971,470 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders and those with notification obligations under the Disclosure and Transparency Rules to determine their interest in the company.

Business Operations and Strategy
Games Workshop CEO Increases Shareholding, Reflecting Confidence in Company’s Future
Positive
Feb 18, 2025

Kevin Rountree, CEO of Games Workshop, purchased 102 ordinary shares in the company under its dividend reinvestment plan, increasing his stake to over 19,293 shares, representing approximately 0.06% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, signifies ongoing confidence from leadership in the company’s financial health and strategic direction, potentially reassuring investors and stakeholders of its stable market positioning.

Regulatory Filings and Compliance
Games Workshop Announces Total Voting Rights Update
Neutral
Feb 3, 2025

Games Workshop Group PLC has announced that as of February 3, 2025, the company has 32,970,942 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders and other stakeholders with notification obligations under the Disclosure and Transparency Rules, as it informs them about their voting rights and interest changes in the company.

Executive/Board ChangesBusiness Operations and Strategy
Games Workshop Appoints Industry Veteran to Board
Positive
Feb 3, 2025

Games Workshop has appointed Eric Maugein as a Non-Executive Director. With over 35 years in the consumer goods sector, including a significant tenure at The LEGO Group, Eric brings extensive experience in market expansion and strategy implementation, which could enhance Games Workshop’s growth and strategic initiatives.

Games Workshop Boosts Dividend Amid Strong Performance
Jan 14, 2025

Games Workshop Group PLC has announced a dividend of £1.55 per share, increasing the total dividends for the 2024/25 financial year to £4.20 per share, compared to £3.15 per share in the previous year. This decision aligns with the company’s policy to distribute surplus cash, reflecting its strong financial health and commitment to shareholder returns, potentially enhancing its industry standing and investor confidence.

Games Workshop Reports Record Half-Yearly Performance Amid Strategic Expansions
Jan 14, 2025

Games Workshop has reported a strong performance in its half-yearly results for the period ended December 1, 2024, with a notable increase in core and licensing revenues driven by successful product launches and media initiatives. The company has seen a growth in trade and retail channels, while online sales have declined slightly. Despite challenges in stock availability and increased costs, Games Workshop continues to expand its manufacturing capacity and improve its operational efficiency, supported by strategic partnerships like the one with Amazon for adapting its Warhammer 40,000 universe into films and television series. The company’s strategic focus remains on long-term success, and it is well-positioned to manage potential cost increases due to external economic factors.

Games Workshop Announces Total Voting Rights Update
Jan 2, 2025

Games Workshop Group PLC announced that it has 32,970,714 issued ordinary shares as of January 2, 2025, all of which are admitted to trading and carry voting rights at general meetings. This update provides necessary information for shareholders and others with notification obligations under the Disclosure and Transparency Rules to determine changes in their interests in the company.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.