Games Workshop Group Plc (GAW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tandem Group Plc

Nexteq Plc

Frontier Developments Plc

Games Workshop Group Plc

The Character Group Plc

Celtic Plc

Hornby Plc

Why is Games Workshop Group Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 55.12%

Healthy long term growth as Net Sales has grown by an annual rate of 16.10% and Operating profit at 20.49%
Company has very low debt and has enough cash to service the debt requirements

Flat results in May 26

INTEREST(HY) At GBP 1 MM has Grown at 42.86%
INTEREST COVERAGE RATIO(Q) Lowest at 15,900
DIVIDEND PAYOUT RATIO(Y) Lowest at 85.49%

With ROE of 64.87%, it has a fair valuation with a 22.57 Price to Book Value

Over the past year, while the stock has generated a return of 18.45%, its profits have risen by 16.4% ; the PEG ratio of the company is 2.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Games Workshop Group Plc should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Games Workshop Group Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Games Workshop Group Plc

19.34%

8.41

27.65%

FTSE 100

19.78%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.10%

EBIT Growth (5y)

20.49%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

1.87

Tax Ratio

25.28%

Dividend Payout Ratio

77.72%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

134.83%

ROE (avg)

55.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

22.57

EV to EBIT

25.42

EV to EBITDA

21.86

EV to Capital Employed

43.92

EV to Sales

10.84

PEG Ratio

2.13

Dividend Yield

171.85%

ROCE (Latest)

172.76%

ROE (Latest)

64.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 520.5 MM

RAW MATERIAL COST(Y)

Fallen by -3.22% (YoY

CASH AND EQV(HY)

Highest at GBP 182.9 MM

-5What is not working for the Company

INTEREST(HY)

At GBP 1 MM has Grown at 42.86%

INTEREST COVERAGE RATIO(Q)

Lowest at 15,900

DIVIDEND PAYOUT RATIO(Y)

Lowest at 85.49%

Here's what is working for Games Workshop Group Plc

Operating Cash Flow

Highest at GBP 520.5 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Cash and Eqv

Highest at GBP 182.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -3.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 23.8 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Games Workshop Group Plc

Interest Coverage Ratio

Lowest at 15,900

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At GBP 1 MM has Grown at 42.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Dividend Payout Ratio

Lowest at 85.49%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)