Games Workshop is worth a look
Games Workshop released their annual report yesterday and are doing an excellent job of weathering the current climate.

In case you are not familiar, here's what they do -

Games Workshop manufactures Warhammer, Warhammer 40,000 and licenses Lord of the Rings / Hobbit miniature figurines. Customers paint the figurines which are then used in wargames.

Post media

Here are some top line takeaways

  • Increased revenue despite the world reopening. Core revenue increased by 9.5%
  • Licensing revenue (essentially cost free) increased by 71%
  • Despite increasing costs, gross margin still remains a very healthy 67% (software style GM%)
  • Healthy dividend yield of just under 4%
  • Currently trading at an EV/EBIT of 15.5
  • ROE of 54.71

I wrote about them last year but think a revisit may be required.

Sidni Standard's avatar
If they started to offer a digital version of these figurines in the form of an NFT that customers get whenever they buy a physical product that they can then use in the online games, this would really put them ahead of the curve!!
Reasonable Yield's avatar
This is my kind of idea, thanks for sharing, going to grab a cup of tea and read this now.
Conor Mac's avatar
The photo alone caught my attention haha.
Joey Hirendernath's avatar
Had not heard of Games Workshop before this.

An excellent analysis Sonny, thanks for this.

With great margins, ‘under promise and over deliver’ as the managements ethos, a loyal client/customer base and a wealth of IP, definitely warrants being on your watchlist.
Sonny - Secret Sauce Company Research's avatar
@joeyhirendernath Thanks Joey. It certainly ticks a lot of my boxes that I search for.