Can The Fun Go On For Games Workshop?

The Consumer Cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a small-cap United Kingdom Leisure Industry firm.

It's name is Games Worksop Group PLC.

It's trading ticker symbol is GMWKF

Games Workshop Group PLC designs manufactures and sells fantasy miniatures and games related products. It operates through various segments which are Sales channels, Product and supply, Central costs, Service centre costs and Royalties.

It also provides painting ranges and guides, brushes and accessories, and paint bundles; modeling tools and glues; bases and cases; painting and modeling books; boxed games; and magazine newsstand services. In addition, the company engages in trustee activities. 

It primarily offers its products under the Warhammer 40,000 and Warhammer: Age of Sigmar universes names. The company distributes its products through a network of approximately 462 Games Workshop stores in 23 countries; 3,900 independent retailers in 62 countries; and through Internet and mail orders in the United Kingdom, Continental Europe, North America, Australia, New Zealand, and Asia. 

Games Workshop Group PLC was incorporated in 1991 and is headquartered in Nottingham, the United Kingdom.

I use three key data points gauge the value of any dividend equity or fund like Games Workshop Group PLC: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, those first three primary keys, best tell whether a company has made, is making, and will make money. 

GMWKF Price

Games Workshop's price per share was $40.55 at yesterday's market close. A year ago its price was $16.50 for a gain of $24.05 per share.  

Assuming Games Workshop's price will trade in the range of $24 to $54 next year, its price could grow half as high from it current $40.55 to $52.60 by July 2019. 

GMWKF Dividends

Games Workshop's most recent variable quarterly dividend was $0.40 payable July 27. 

Past quarterly payouts peg the annual amount at $1.76 for a yield of 4.34% at yesterday's $40.55 share price. 

Gains For GMWKF?

Adding the $1.76 annual dividend to the $12.05 potential year over year price gain makes a $13.81 projected gross annual per share gain, which will be reduced by any cost to trade these shares.  

$1,000.00 invested today at the $40.55 price buys 25 shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.40 per share

Subtracting that $0.40 brokerage cost from the estimated $13.81 gross gain leaves a net gain of $13.41 X 25 shares 

= $335.25

or a 33.5% net gain on a $1013.75 investment.

Therefore, Games Workshop Group PLC (whose ticker symbol is GMWKF), now shows a possible 33.5% net gain including a 4.34% dividend yield. 

No analysts cover this stock. The current stock price has retreated 1% from a high of $41 reached June 7th. The projected year over year price target at $12.05 may be as good as you'll get.

Y Charts has not yet rated GMWKF for an overall "Y" rating. Y Charts shows "insufficient data" for a Value score. Also has "insufficient data" to give Games Workshop a Fundamental reading. A Historic Valuation score for GMWKF also has "insufficient data" for a Y Charts rating. 

You could look at all those numbers this way, Games Workshop Group PLC has made money, is making money, and could net a 33% gain next year including a 4.3% annual dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be far higher or lower. More study is required for you to determine if Games Workshop Group PLC is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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