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.
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.
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.