tiprankstipranks
Trending News
More News >
Games Workshop Group PLC (GB:GAW)
LSE:GAW
Advertisement

Games Workshop (GAW) AI Stock Analysis

Compare
234 Followers

Top Page

GB

Games Workshop

(LSE:GAW)

Rating:75Outperform
Price Target:
17,888.00p
▲(10.42%Upside)
Games Workshop's strong financial performance and positive corporate events are the most significant factors supporting the stock's score. While the valuation indicates a relatively high P/E ratio, the dividend yield offers some appeal. The stock's technical indicators suggest moderate strength, supporting a positive outlook.
Positive Factors
Earnings
Group profit before tax is expected to be approximately £255m, comfortably ahead of market expectations.
Market Performance
The shares have had a strong run (6m +25%) but are likely to see further growth.
Revenue Growth
Licensing revenue is expected to reach approximately £45m, marking an impressive increase of 167%.
Negative Factors
Market Valuation
The shares have had a very good run and continue to justify a premium multiple with upgrades.

Games Workshop (GAW) vs. iShares MSCI United Kingdom ETF (EWC)

Games Workshop Business Overview & Revenue Model

Company DescriptionGames Workshop Group PLC, together with its subsidiaries, designs, manufactures, distributes, and sells miniature figures and games in the United Kingdom, Continental Europe, North America, Australia, New Zealand, Asia, and internationally. It operates in two segments, Core and Licensing. The company offers games under the Warhammer: Age of Sigmar and Warhammer 40,000 names, as well as Horus Heresy, an off shoot of Warhammer 40,000. It also publishes short stories, audio dramas, full length novels, and audio books under the Black Library name; and develops digital content for animation and TV. In addition, the company provides painting and modelling products, boxed games, and gifts; and engages in the newsstand and trustee businesses. It offers its products through its retail stores, social media sites, and warhammer-community.com; and physical bookstores, third party online platforms, and other retail and specialist stores. The company operated 518 stores in 23 countries; 400 single staff stores; and 118 multi-staff stores. Games Workshop Group PLC was incorporated in 1991 and is headquartered in Nottingham, the United Kingdom.
How the Company Makes MoneyGames Workshop makes money primarily through the sale of its miniature models, rulebooks, and related hobby products. Its revenue streams include direct sales from its retail stores and online platforms, as well as wholesale distribution to independent retailers. The company also generates income from licensing agreements, allowing other companies to produce video games, merchandise, and media content based on its intellectual properties. Key factors contributing to its earnings include its strong brand presence, dedicated fan base, and a diverse product lineup that encourages customer engagement and repeat purchases.

Games Workshop Financial Statement Overview

Summary
Games Workshop demonstrates strong financial health with impressive profitability metrics, efficient cash flow management, and a solid balance sheet. The company's consistent revenue growth and operational efficiency further bolster its financial standing.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue525.70M470.80M414.80M369.50M269.70M
Gross Profit374.50M319.80M282.70M269.30M177.00M
EBITDA243.30M211.00M169.90M178.10M115.10M
Net Income151.10M134.70M128.40M122.00M71.30M
Balance Sheet
Total Assets351.30M326.80M321.10M281.70M207.60M
Cash, Cash Equivalents and Short-Term Investments107.60M90.20M71.40M85.20M52.90M
Total Debt47.20M49.90M48.90M47.00M37.00M
Total Liabilities99.90M91.70M86.40M85.40M73.90M
Stockholders Equity251.40M235.10M234.70M196.30M133.70M
Cash Flow
Free Cash Flow163.60M165.60M89.40M102.90M80.00M
Operating Cash Flow196.20M193.90M121.70M132.90M104.60M
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
Positive
Last Price16200.00
Price Trends
50DMA
15881.13
Positive
100DMA
15090.25
Positive
200DMA
13948.40
Positive
Market Momentum
MACD
92.24
Negative
RSI
56.95
Neutral
STOCH
66.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GAW, the sentiment is Positive. The current price of 16200 is above the 20-day moving average (MA) of 15997.80, above the 50-day MA of 15881.13, and above the 200-day MA of 13948.40, indicating a bullish trend. The MACD of 92.24 indicates Negative momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 66.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GAW.

Games Workshop Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£411.96M14.7018.88%489.16%7.46%-18.88%
GBGAW
75
Outperform
£5.35B30.6065.47%373.46%17.40%25.15%
73
Outperform
£304.68M11.756.45%350.35%4.79%223.72%
GBCCT
73
Outperform
£50.01M9.3914.34%11227.44%-2.86%4.50%
GBGYM
70
Outperform
£270.33M61.603.39%10.93%
65
Neutral
S$940.34M37.705.70%3.21%6.06%-25.02%
59
Neutral
£98.19M49.701.70%3.94%-3.88%-83.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GAW
Games Workshop
16,200.00
6,548.04
67.84%
GB:CCT
Character
292.00
-2.07
-0.70%
GB:TUNE
Focusrite
164.00
-208.91
-56.02%
GB:FSTA
Fuller Smith & Turner
588.00
-106.81
-15.37%
GB:GYM
The Gym
154.00
16.00
11.59%
GB:BOWL
Hollywood Bowl
249.00
-60.79
-19.62%

Games Workshop Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Games Workshop Grants Share Award to CEO Under 2025 Plan
Neutral
Jul 4, 2025

Games Workshop has granted a restricted share award to its CEO, Kevin Rountree, under the 2025 Share Awards Plan. This award involves 14,178 ordinary shares at a nominal value of 5 pence per share, with a vesting date set for December 31, 2027. This move is part of the company’s strategy to align executive incentives with shareholder interests, potentially impacting the company’s leadership stability and market confidence.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

Regulatory Filings and Compliance
Games Workshop Updates on Total Voting Rights
Neutral
Jul 2, 2025

Games Workshop Group PLC announced that as of July 2, 2025, the company has 32,971,750 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders and others with notification obligations under the Disclosure and Transparency Rules to determine their interest in the company.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

DividendsFinancial Disclosures
Games Workshop Announces 85p Dividend for 2025/26
Positive
Jun 25, 2025

Games Workshop Group PLC has announced a dividend of 85 pence per share for the fiscal year 2025/26, marking a significant return to shareholder payouts after no dividends were declared in 2024/25. This decision aligns with the company’s dividend policy and reflects its strong financial performance, potentially enhancing investor confidence and impacting its market position positively.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

Regulatory Filings and Compliance
Games Workshop Announces Total Voting Rights Update
Neutral
Jun 2, 2025

Games Workshop Group PLC announced that as of June 2, 2025, it has 32,971,750 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders and others with notification obligations to determine their interest in the company under the Disclosure and Transparency Rules.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Games Workshop Appoints New Group Operations Director
Positive
Jun 2, 2025

Games Workshop has announced the appointment of Neil Tomlinson as Group Operations Director. Tomlinson, who joined the company in 2018 and has held various management roles, brings experience from previous positions at J Sainsbury’s and ASDA Walmart. This appointment is expected to strengthen the company’s operational capabilities.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

DividendsFinancial Disclosures
Games Workshop Reports Strong Financial Performance with Record Licensing Revenue
Positive
May 23, 2025

Games Workshop has reported strong financial performance for the year ending June 2025, with core revenue expected to exceed £560 million and licensing revenue reaching a record £50 million. Despite the record licensing revenue, the company does not anticipate similar results in the next fiscal year, highlighting the importance of this revenue stream. The company has also recognized staff contributions through profit-sharing payments and increased dividends, reflecting its commitment to rewarding employees and shareholders.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Games Workshop Shareholders Approve Key Resolutions Amidst Mixed Support
Neutral
May 15, 2025

Games Workshop Group PLC announced that during their recent General Meeting, shareholders approved two key resolutions: the remuneration policy and the 2025 Share Awards Plan. Despite some opposition, with over 20% of votes against, the Board acknowledged the majority support and emphasized ongoing engagement with shareholders regarding remuneration practices.

The most recent analyst rating on (GB:GAW) stock is a Buy with a £11850.00 price target. To see the full list of analyst forecasts on Games Workshop stock, see the GB:GAW Stock Forecast page.

DividendsBusiness Operations and Strategy
Games Workshop Leadership Increases Shareholdings
Positive
May 9, 2025

Games Workshop announced that its CEO, Kevin Rountree, has acquired 122 ordinary shares under the company’s dividend reinvestment plan, bringing his total beneficial interest to 19,620 shares. Additionally, Mark Lam, the Non-Executive Chair, acquired 1 share, increasing his holding to 201 shares. These transactions highlight the leadership’s continued investment in the company, potentially signaling confidence in its future performance and stability.

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

Games Workshop Group PLC announced that as of May 1, 2025, it has 32,971,713 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders and others with notification obligations under the Disclosure and Transparency Rules, as it helps them determine their interest in the company.

Executive/Board ChangesShareholder Meetings
Games Workshop Seeks Shareholder Approval for New Policies
Neutral
Apr 17, 2025

Games Workshop has announced a General Meeting to seek shareholder approval for a revised directors’ remuneration policy and a new share awards plan. This move indicates the company’s efforts to align its executive compensation and incentive structures with its strategic goals, potentially impacting its governance and shareholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025