Working Capital Advisors (UK) Ltd., a London-based investment firm, has recently increased its stake in Funko Inc. (FNKO, Financial), a leading pop culture consumer products company. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the potential implications for value investors.
Details of the Transaction
The transaction took place on October 5, 2023, with the firm adding 33,994 shares to its portfolio. This move resulted in a 0.50% change in shares and a 0.17% impact on the firm's portfolio. The shares were acquired at a price of $7.04 each, bringing the firm's total holdings in Funko Inc. to 6,866,895 shares. This represents 33.97% of the firm's portfolio and 13.26% of Funko Inc.'s total shares.
Profile of Working Capital Advisors (UK) Ltd.
Working Capital Advisors (UK) Ltd. is a renowned investment firm based in London. The firm's portfolio consists of four stocks, with a total equity of $142 million. Its top holdings include Funko Inc. (FNKO, Financial), Stitch Fix Inc. (SFIX, Financial), Open Lending Corp. (LPRO, Financial), and Hagerty Inc. (HGTY, Financial). The firm primarily invests in the Consumer Cyclical and Financial Services sectors.
Overview of Funko Inc.
Funko Inc., a U.S.-based company, specializes in creating pop culture consumer products. The company holds licenses for tens of thousands of characters from popular movies, TV shows, video games, and sports teams. Since its IPO on November 2, 2017, the company has a market capitalization of $357.429 million and a current stock price of $6.9. However, the company's performance since its IPO and year-to-date has been less than stellar, with a decrease of 13.75% and 36.35% respectively.
Analysis of Funko Inc.'s Financials
Funko Inc.'s financials reveal a mixed picture. The company's GF Score is 66/100, indicating a moderate future performance potential. Its Financial Strength and Profitability Rank stand at 4/10 and 6/10 respectively. The company's Growth Rank is 7/10, while its GF Value Rank and Momentum Rank are 4/10 and 1/10 respectively. The company's Piotroski F-Score is 3, and its Altman Z score is 1.43, indicating potential financial distress.
Funko Inc.'s Performance in the Industry
In the Travel & Leisure industry, Funko Inc.'s performance has been lackluster. The company's ROE and ROA ranks are 722 and 753 respectively. Its gross margin growth is -2.10%, and its 3-year revenue growth is 7.10%. The company's RSI 14 Day Rank is 689, and its Momentum Index 6 - 1 Month Rank is 769.
The Largest Guru Holder of Funko Inc.
The largest guru holder of Funko Inc. is Hotchkis & Wiley Capital Management LLC. However, the exact percentage of shares held by the firm is not available at the moment.
Conclusion
In conclusion, Working Capital Advisors (UK) Ltd.'s recent acquisition of additional shares in Funko Inc. is a significant move that further solidifies its position in the company. Despite Funko Inc.'s mixed financial performance and industry standing, the firm's increased stake could potentially yield substantial returns in the future. However, value investors should exercise caution and conduct thorough research before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
