Games Workshop Group Plc: Leads amongst peers with strong fundamentals

Games Workshop Group Plc relative valuation is OVERVALUED and it has a fundamental analysis score of 78.

Our analysis is based on comparing Games Workshop Group Plc with the following peers – GAME Digital plc, Hornby PLC, Tandem Group plc and Character Group plc (GMD-GB, HRN-GB, TND-GB and CCT-GB).

Games Workshop Group Plc has shown good performance overall, both over the last one year (at 297.88%) as well as over the last month (at 22.82%). Share price performance over the last month, though has been lower than that over the last year. But Games Workshop Group Plc’s stock has done better than its overall peer group whose performance was 4.34% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It currently trades at a Price/Book ratio of (11.51).
  • GAW-GB outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
  • GAW-GB has relatively high profit margins while operating with median asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • GAW-GB’s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • While GAW-GB’s revenues growth has been around the peer median in recent years, the market seems to see faster growth ahead and gives its shares a higher than peer median P/E ratio.
  • The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
  • GAW-GB currently does not have any debt.
  • Our analysis rates Games Workshop Group Plc as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

GAW-GB’s share price performance of 297.88% over the last 12 months is above peer median of 2.34%. The 30-day trend in its share price performance of 22.82% is also above the peer median of 4.34% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Games Workshop Group Plc’s price of GBP 22.50 is greater than CapitalCube’s implied price of GBP 7.05. At this level, CapitalCube believes that Games Workshop Group Plc is overvalued. Over the last 52 week period, the stock has fluctuated between GBP 5.40 and GBP 22.92.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Games Workshop Group Plc engages in the design and manufacture of miniature figures and games. It operates through the following business segments: Sales Channels, Product and Supply, Central Costs, Service Center Costs, Royalties, Trade, Retail, and Mail Order. The Sales Channels segments sell product to external customers. The Product and Supply segment includes the design and manufacture of the products. The Central Costs comprises of the company overheads, head office site costs, and the costs of running the Games Workshop Academy. The Service Center Costs engages in the provision of support services. The Royalties segment involves the royalty income earned from third party licensees after deducting associated licensing costs. The Retail segment stocks Games Workshop product. The Trade segment sell to third party retailers under closely controlled terms and conditions. The Mail Order segment operates stores in Nottingham and offers full access to all Games Workshop products. The company was founded in 1975 and is headquartered in Lenton, the United Kingdom.

Disclaimer

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