Winmark (WINA) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: 3.35%
• Average Volume (3M): 84.55K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.53
• Revenue Growth: 3.35%
• EPS Growth: 1.97%
• Country: US
• Employees: 89
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 2.69
• Shares Outstanding: 3,571,861
• 10 Day Avg. Volume: 91,703
• 30 Day Avg. Volume: 84,548
• PEG Ratio: 10.73
• Price to Book (P/B): -27.13
• Price to Sales (P/S): 16.92
• P/FCF Ratio: 32.57
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 19.42
• Enterprise Value/Gross Profit: 20.14
• Enterprise Value/Ebitda: 29.48
• 1Y Price Target: $545.00
• Price Target Upside: 20.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 12.4
• Revenue Forecast (FY): $88.40M

• Rating: 71 Outperform
• Price Target: $512.00 ▲(13.13% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong profitability and high-quality cash flow, tempered by balance sheet risk (negative equity and meaningful leverage). Technicals are supportive with an upward trend and positive momentum indicators, while a high P/E multiple keeps the valuation component below average. Recent corporate updates add a modest positive tilt via earnings/revenue growth and continued dividend activity.

Positive Factors

Strong cash generation

Consistently high operating and free cash flow provides durable internal funding for dividends, franchise support, debt servicing and targeted reinvestment. Robust cash conversion reduces refinancing risk and underpins financial resilience across business cycles over the next several months.

Exceptional profitability margins

Very high gross and net margins reflect a low-cost, royalty-driven model that yields strong cash returns and high incremental profitability. Margin durability offers a structural buffer to revenue volatility and supports sustained earnings and dividend capacity.

Large franchise network and shareholder returns

Scale across a diverse franchise base drives recurring royalty and fee revenue and amplifies brand reach. Combined with an active dividend program, the company demonstrates steady capital allocation and a franchise economics model that supports predictable cash flows and investor returns.

Negative Factors

Weak balance sheet — negative equity

Chronic negative equity and meaningful leverage materially limit financial flexibility. In downside scenarios, capital access and ability to pursue opportunistic investments or absorb shocks are constrained, increasing bankruptcy and covenant risk over medium-term stress periods.

Flat and volatile revenue growth

Stagnant top-line trends constrain long-term earnings expansion despite high margins. Revenue volatility increases reliance on cost control and cash conversion to sustain returns, limiting durable growth drivers and making future EPS gains more dependent on same-store or franchise count improvements.

High reliance on franchise model

Franchising offers scalable cash streams but reduces direct operational control over execution, customer experience and inventory. Performance is contingent on franchisee health and unit economics, which can slow corporate response to market shifts and concentrate operational risk.

Winmark Business Overview & Revenue Model

Company Description

Winmark Corporation, together with its subsidiaries, operates as a franchisor of retail store concepts that buy, sell, trade, and consign used merchandise primarily in the United States and Canada. The company operates through two segments, Franchising and Leasing. Its franchises retail stores operate under the Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round brand names. The company's Plato's Closet brand stores buys and sells used clothing and accessories for the teenage and young adult market; and Once Upon A Child brand stores buys and sells used and new children's clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years. Its Play It Again Sports brand stores buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities, such as team sports, fitness, ski/snowboard, golf, and others; Style Encore brand stores buys and sells used women's apparel, shoes, and accessories; and Music Go Round brand stores buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories. In addition, the company is also involved in the middle-market equipment leasing business focusing on technology and business-essential equipment. As of February 23, 2022, it had 1,271 franchised stores, as well as offers its products online at musicgoround.com, playitagainsports.com, and style-encore.com. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Winmark generates revenue primarily through its franchise model, where it sells franchise licenses and charges ongoing royalties based on the sales of its franchisees. The company also earns income from the sale of used merchandise at its corporate-owned stores. Key revenue streams include initial franchise fees, ongoing royalty fees from franchisees, and sales of used items from its retail locations. Additionally, Winmark benefits from a growing consumer preference for sustainable shopping, which drives demand for its resale brands. Strategic partnerships with franchisees and a focus on expanding its store network contribute to the company's overall earnings.

Winmark Financial Statement Overview

Summary

Strong profitability and cash generation (high margins; consistently strong operating and free cash flow) are partially offset by a materially weak balance sheet structure, including negative equity and sizable debt relative to assets.

Income Statement

Profitability is a clear strength: the company posts exceptionally high gross profit margins (roughly 93%–96% annually) and very strong net profit margins (about 45%–51%) across the period. Earnings have been consistently high and stable, with net income holding near ~$39–42M in recent years. The main weakness is growth: revenue has been largely flat over the last several years with some volatility (down in 2020, strong rebound in 2021, slight decline in 2024, then a return to growth in 2025).

Balance Sheet

The balance sheet is the primary concern. Stockholders’ equity is negative in every year provided (roughly -$11M to -$62M), which reduces financial flexibility and makes leverage look structurally elevated. Total debt is sizable relative to the company’s asset base (debt of ~$62M–$78M versus total assets of ~$24M–$31M in recent years). While profitability is strong, the negative equity profile and high debt burden increase risk if operating conditions weaken.

Cash Flow

Cash generation is excellent and high-quality. Operating cash flow is consistently strong (~$42M–$48M), and free cash flow is similarly robust (~$39M–$48M), with free cash flow closely tracking net income (about ~0.90–1.00x). Free cash flow growth has been volatile year-to-year (notably down in 2022 and 2024, up strongly in 2025), but overall cash conversion remains a major strength and supports debt service capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	86.06M	81.29M	83.24M	81.41M	78.22M
Gross Profit	82.95M	77.87M	78.38M	76.71M	73.43M
EBITDA	56.68M	55.20M	55.52M	54.57M	52.01M
Net Income	41.65M	39.95M	40.18M	39.42M	39.92M
Balance Sheet
Total Assets	24.88M	26.84M	28.97M	30.46M	26.90M
Cash, Cash Equivalents and Short-Term Investments	10.46M	12.19M	13.44M	13.96M	14.30M
Total Debt	64.79M	63.04M	72.78M	77.57M	52.42M
Total Liabilities	78.57M	77.89M	88.12M	92.09M	65.98M
Stockholders Equity	-53.68M	-51.05M	-59.16M	-61.63M	-39.08M
Cash Flow
Free Cash Flow	44.70M	41.96M	43.61M	40.11M	48.06M
Operating Cash Flow	44.90M	42.16M	43.99M	43.79M	48.35M
Investing Cash Flow	-192.30K	-194.90K	-383.90K	-3.67M	-283.10K
Financing Cash Flow	-46.57M	-43.02M	-43.90M	-37.88M	-43.31M

Winmark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 452.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WINA, the sentiment is Positive. The current price of 452.56 is above the 20-day moving average (MA) of 451.95, above the 50-day MA of 439.31, and above the 200-day MA of 422.83, indicating a bullish trend. The MACD of 8.08 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 90.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WINA.

Winmark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WINA	71 Outperform	$1.62B	34.96	―	3.35%	3.35%	1.97%
RERE	71 Outperform	$1.18B	21.82	7.42%	―	27.84%	―
LQDT	70 Outperform	$1.01B	31.00	14.72%	―	31.20%	38.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SVV	61 Neutral	$1.36B	16.40	5.28%	―	6.45%	-102.30%
TDUP	53 Neutral	$475.12M	-38.47	-35.00%	―	-4.90%	50.77%
BNED	49 Neutral	$295.96M	3.11	-3.86%	―	1.38%	63.65%

Winmark Corporate Events

Winmark Posts Higher 2025 Earnings and Revenue Growth

On February 18, 2026, Winmark reported that for the fiscal year ended December 27, 2025, net income rose to $41.7 million, or $11.30 per diluted share, from $40.0 million, or $10.89 per diluted share, in 2024, while annual revenue increased to $86.1 million from $81.3 million. Fourth-quarter 2025 net income edged up to $10.0 million from $9.6 million a year earlier as the company stepped up spending on marketing, technology and innovation to bolster its franchise network, moves that lifted selling, general and administrative costs but were positioned as strengthening its long-term business model.

The most recent analyst rating on (WINA) stock is a Buy with a $508.00 price target. To see the full list of analyst forecasts on Winmark stock, see the WINA Stock Forecast page.

Winmark Declares Quarterly Dividend, Highlights Strong Franchise Sales

On January 28, 2026, Winmark Corporation announced that its board had approved a quarterly cash dividend of $0.96 per share, payable on March 2, 2026 to shareholders of record as of the close of business on February 11, 2026, reinforcing the company’s ongoing capital-return program to investors. At its annual franchise conference on January 27, 2026, the company also reported system-wide sales of $1.7 billion for the fiscal year ended December 27, 2025 across its franchise network, underscoring the scale and revenue-generating performance of its resale-focused franchise system.

The most recent analyst rating on (WINA) stock is a Buy with a $481.00 price target. To see the full list of analyst forecasts on Winmark stock, see the WINA Stock Forecast page.