Games Workshop Stock Analysis

In this video I'm analyzing a stock called Games Workshop. It is a company that makes Warhammer figures and based out of the UK. I'm personally invested in the company and in video I go over the latest earnings as well discuss the risks that are involved with investing in the company.
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00:00 Introduction
00:56 Company Overview
02:46 Opportunities in the IP
04:04 Company Risks
06:04 Latest Earnings
09:57 My Key Ratios
12:13 Conclusion

[@David.Marquez]

It's been interesting seeing friends of mine who were never into board games/wargaming starting to get into it, the Warhammer franchises definitely have a lot of power and very tangible growth, this really has reflected in the growth these last couple years.

[@TheIcelandicInvestor]

That's true

[@hyperhippyhippohopper]

I'm a shareholder in Games Workshop, too. I bought it when there was some negative news about licensing revenues that were expected to come down by a few million. But of course, the market being the market, the news sent down GAW's market cap by several hundreds of millions in GBP, and so I was able to snatch it at just over 6% FCF yield.

[@TheIcelandicInvestor]

Nice!

[@perwis9893]

Nice analysis. Where did you get the video in the beginning explaining GWs strategy for selling IP to game studios?

[@TheIcelandicInvestor]

Thanks, I just searched Games Workshop on TH-cam

[@perwis9893]

@@TheIcelandicInvestorok. Seemed like an interesting analysis. Btw the ceo has been with the company for a long time so I would not call him a “hired gun.”

[@TheIcelandicInvestor]

@@perwis9893 Yeah it was just in the sense that he doesn't own a meaningful stake in the company.

[@NattyLegend1]

Where did you find the info about the average age of their customer? To me this is the biggest risk I see for the company

[@martinbengtsson3632]

I don't know if it is a good or a bad thing but the company is quite disliked by the people using there games. But they keep using there products because there IP is so good. I have been super annoyed by games workshop when they decided to end the fantasy parts of there wargaming but the IP is so strong so i am planning to buy the new product ( the old world) anyway. The Amazon deal can become realy big if they let Henry Cavill (who also is a fan of warhammer) get his vision unaltered. It could be the next Marvel.
Great content as always.

[@TheIcelandicInvestor]

Yeah that's a good point, it is of course not good that their customers dislikes them but a good thing at the same that the IP is so strong that they still buy. I didn't Henry Cavill was gonna be in it, that sounds like it could be something good.

[@uberdice]

As with any game company, the people who are satisfied with the product often don't say anything, but anyone with a complaint will have it amplified. There are gripes about game balance and pricing that ebb and flow with every balance dataslate or new edition, but what game with a competitive scene doesn't have these issues?

[@TheIcelandicInvestor]

@@uberdice That's a good point.

[@sheanathan3566]

I am not familiar with thus company or product but, copyright content aside, I am curious why they can’t be disrupted by anyone with a 3D printer?

[@uberdice]

3D printed minis will often lock you out of tournaments (tournament rules often exclude non-GW minis), and will mean you can't play at GW stores, so it's a non-starter for anyone who doesn't have a core group and dedicated space to play in. The official sculpts often have a lot of variety between figures, and very high quality which would be difficult to match. If you're just interested in playing with your friends at home then yeah you can 3D print, but by the time you've bought and troubleshooted your setup, and then waited for all the printing to be done, you might not even be that far ahead of just having bought official to begin with. Paints are probably where they're most vulnerable to disruption, and you can't 3D print those.

[@TheIcelandicInvestor]

Yeah Kevin Rountree has also mentioned that the company would respond by selling the print ready models for 3D printing if they had to since it has been a bear thesis on the company for a long time.

[@bmwofboganville456]

Warhammer has world class IP. If they can "do a Marvel" then it's a multi multi bagger.

[@TheIcelandicInvestor]

Totally agree! The Warhammer universe has so much potential for expansion and storytelling.

[@Cleisthenes607]

I'll be buying more once it falls under £95.

[@TheIcelandicInvestor]

That sounds like a solid plan!