Read on Twitter
The n00b Analysis - Games Workshop
FTSE: GAW
Games Workshop are the worlds leading miniature wargame manufacturer AND media company
They access a market worth over $10bn per annum with global appeal
They have a strong MOAT
[THREAD
]
FTSE: GAW
Games Workshop are the worlds leading miniature wargame manufacturer AND media company
They access a market worth over $10bn per annum with global appeal
They have a strong MOAT
[THREAD
]
Current Trading
Covid Winner! - Current lockdown guidelines appear to have helped with 15% revenue growth 2020
Add to this 50% growth in licensing (movies/video games)
Finally, comics have just been announced in a collaboration with Marvel (i.e. Disney)
Covid Winner! - Current lockdown guidelines appear to have helped with 15% revenue growth 2020
Add to this 50% growth in licensing (movies/video games)
Finally, comics have just been announced in a collaboration with Marvel (i.e. Disney)
Profit and Loss
3 Month update to August 2020 indicated PROFIT growth of £17m - a whopping 61% versus 2019
This came from a modest revenue increase of £12m
If anything Covid helps as they spend less on R&D and "Sweat" the existing intellectual property and copyrights
3 Month update to August 2020 indicated PROFIT growth of £17m - a whopping 61% versus 2019
This came from a modest revenue increase of £12m
If anything Covid helps as they spend less on R&D and "Sweat" the existing intellectual property and copyrights
Balance Sheet
"Traditional" Manufacturer so simpler Stock, Debtor, Creditor balance sheet
Working Capital increase by 15% in FY20
Longer term liabilities relate to retail units which have faced footfall challenges however more than covered by online sales uplift
"Traditional" Manufacturer so simpler Stock, Debtor, Creditor balance sheet
Working Capital increase by 15% in FY20
Longer term liabilities relate to retail units which have faced footfall challenges however more than covered by online sales uplift
Cash Flow
Cash is a bit of an ace up the sleeve here
Sales growth with less new product development = cash balances skyrocketed
Closing cash £53m easily covers their property leases 2 times
Extremely cash generative with an increase of £23.5m (80%) in the year
Cash is a bit of an ace up the sleeve here
Sales growth with less new product development = cash balances skyrocketed
Closing cash £53m easily covers their property leases 2 times
Extremely cash generative with an increase of £23.5m (80%) in the year
P/E Ratio
Is high (47) HOWEVER they have a unique, high margin product
They a "rinse and repeat" business model for getting product to market
Add to this they reintroduce old ranges to appeal to nostalgia hungry customers
Is high (47) HOWEVER they have a unique, high margin product
They a "rinse and repeat" business model for getting product to market
Add to this they reintroduce old ranges to appeal to nostalgia hungry customers
The Future...?
Growth in Asian markets gives further demand
Videogames development in 2020 & 2021
Movie titles are planned for development
Likely FTSE100 entry in Nov 2020 will open them to POSSIBLE FTSE100 index fund investors to drive price increase
Growth in Asian markets gives further demandVideogames development in 2020 & 2021Movie titles are planned for developmentLikely FTSE100 entry in Nov 2020 will open them to POSSIBLE FTSE100 index fund investors to drive price increase
Analysis and Opinions are my own. I am NOT a financial advisor. Please do YOUR OWN research
