Games Workshop Group’s (GAW’s) Q322 trading update (to the end of February), which indicates that trading is in line with expectations, is reassuring given the incremental cost pressures (including freight) highlighted in the H122 results. We believe the company’s cash position is better than we expected given the declaration of a further dividend (70p/share), taking the cumulative (financial) year to date total to 235p/share. We make no changes to our forecasts beyond increasing our FY22 dividend estimate to 235p/share, a flat dividend versus FY21. The share price weakness means that the P/E multiples for FY22e (19.3x) and FY23e (18.7x) are below more recent non-COVID affected peak multiples.
24 Mar 2022
Games Workshop Group - Upgrading forecast for FY22 cash returns
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Games Workshop Group - Upgrading forecast for FY22 cash returns
Games Workshop Group PLC (GAW:LON) | 9,500 0 0.0% | Mkt Cap: 3,130m
- Published:
24 Mar 2022 -
Author:
Russell Pointon -
Pages:
3
Games Workshop Group’s (GAW’s) Q322 trading update (to the end of February), which indicates that trading is in line with expectations, is reassuring given the incremental cost pressures (including freight) highlighted in the H122 results. We believe the company’s cash position is better than we expected given the declaration of a further dividend (70p/share), taking the cumulative (financial) year to date total to 235p/share. We make no changes to our forecasts beyond increasing our FY22 dividend estimate to 235p/share, a flat dividend versus FY21. The share price weakness means that the P/E multiples for FY22e (19.3x) and FY23e (18.7x) are below more recent non-COVID affected peak multiples.