Working Capital Advisors (UK) Ltd. Increases Stake in Funko Inc
Working Capital Advisors (UK) Ltd., a London-based investment firm, has recently expanded its portfolio by acquiring an additional 110,190 shares in Funko Inc. (NASDAQ:FNKO) on September 8, 2023. This transaction has increased the firm's total holdings in Funko Inc. to 6,634,512 shares, representing 12.81% of the company's outstanding shares. The firm's stake in Funko Inc. now constitutes 32.32% of its total portfolio. The shares were purchased at a price of $6.96 per share.
About Working Capital Advisors (UK) Ltd.
Working Capital Advisors (UK) Ltd. is a prominent investment firm located in London. The firm's investment philosophy is centered around identifying undervalued companies with strong growth potential. As of the latest reporting period, the firm manages four stocks with a total equity of $142 million. Its top holdings include Funko Inc. (NASDAQ:FNKO), Stitch Fix Inc. (NASDAQ:SFIX), Open Lending Corp. (NASDAQ:LPRO), and Hagerty Inc. (NYSE:HGTY). The firm's portfolio is heavily concentrated in the Consumer Cyclical and Financial Services sectors.
Funko Inc. Overview
Funko Inc., a pop culture consumer products company based in the USA, is known for creating unique and fun products that allow customers to express their affinity for their favorite movie, TV show, video game, musician, or sports team. The company holds licenses and rights to create tens of thousands of characters from popular franchises such as Game of Thrones, Walking Dead, Disney, Marvel, Harry Potter, Fallout, and others. Funko Inc. operates in four segments: Core Collectible, Loungefly, Other, and Loungefly Branded Products. As of September 11, 2023, the company has a market capitalization of $376.076 million and its stock is trading at $7.26 per share.
Funko Inc.'s Performance and Valuation
Funko Inc.'s performance has been somewhat lackluster, with a year-to-date price change of -33.03% and a price change of -9.25% since its Initial Public Offering (IPO) on November 2, 2017. The company's GF Score is 66/100, indicating a moderate future performance potential. The company's GF Value is $17.98, suggesting that the stock is currently undervalued. However, with a price to GF Value of 0.40, investors should exercise caution as the stock could be a possible value trap.
Funko Inc.'s Financial Health and Growth
Funko Inc.'s financial strength is rated 4/10, while its profitability rank is 6/10. The company's growth rank is 7/10, indicating a moderate growth potential. However, the company's Piotroski F-Score is 3, suggesting poor business operations. Furthermore, the company's Altman Z score of 1.43 indicates potential financial distress.
Transaction Impact and Analysis
The recent acquisition by Working Capital Advisors (UK) Ltd. has increased its influence in Funko Inc. and further diversified its portfolio. The transaction has also increased the firm's exposure to the Consumer Cyclical sector. However, given Funko Inc.'s current financial health and growth prospects, the firm's investment in the company carries a certain level of risk. Investors should closely monitor the company's performance and the firm's future transactions.
As of the latest reporting period, the largest guru holding Funko Inc. is Hotchkis & Wiley Capital Management LLC. However, the exact share percentage held by the company is not available at this time.
All data and rankings are accurate as of September 11, 2023.
This article first appeared on GuruFocus.
