Winmark (WINA) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 3.35%
• Average Volume (3M): 84.55K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.52
• Revenue Growth: 3.35%
• EPS Growth: 1.97%
• Country: US
• Employees: 89
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 3.02
• Shares Outstanding: 3,562,135
• 10 Day Avg. Volume: 91,703
• 30 Day Avg. Volume: 84,548
• PEG Ratio: -21.20
• Price to Book (P/B): -27.29
• Price to Sales (P/S): 17.14
• P/FCF Ratio: 33.20
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 19.27
• Enterprise Value/Gross Profit: 20.01
• Enterprise Value/Ebitda: 28.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 11.55
• Revenue Forecast (FY): $85.31M

• Rating: 71 Outperform
• Price Target: $508.00 ▲(17.31% Upside)

The score is driven primarily by strong profitability and cash generation, tempered by elevated financial risk from consistently negative equity. Technical momentum is supportive, while the premium P/E multiple keeps the overall score from being higher; the recent dividend and franchise sales update adds a modest positive.

Positive Factors

Operational Efficiency

High margins indicate effective cost management and operational efficiency, supporting long-term profitability and competitive positioning.

Cash Flow Generation

Strong cash flow generation ensures liquidity and financial flexibility, enabling investment in growth opportunities and shareholder returns.

Dividend Policy

Consistent and special dividends reflect a strong financial position and commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

High Leverage

High leverage and negative equity can strain financial stability, limiting the company's ability to weather economic downturns and invest in growth.

Modest Revenue Growth

Modest revenue growth may indicate limited market expansion, potentially impacting long-term competitive positioning and shareholder returns.

High Capital Expenditures

Significant capital expenditures can constrain cash flow, limiting the company's ability to invest in new opportunities and maintain financial flexibility.

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

Operating performance is excellent (very high margins near ~49% and strong cash conversion), but the persistently negative shareholders’ equity materially increases balance-sheet risk and limits financial flexibility, pulling down the overall financial score.

Income Statement

Profitability is exceptional for the industry, with very high gross and operating profitability and net margins near ~49% in both 2024 and TTM (Trailing-Twelve-Months). Revenue growth has been uneven (down slightly in 2024, re-accelerating in TTM), but earnings remain resilient and stable across years, suggesting a strong underlying business model despite modest top-line volatility.

Balance Sheet

The balance sheet is the key weak spot: shareholders’ equity is negative across all periods (including TTM), which makes leverage look structurally elevated and increases financial risk. While total debt is sizable and fairly persistent, the negative equity position limits balance-sheet flexibility and can amplify downside risk if operating conditions weaken.

Cash Flow

Cash generation is a major strength, with operating cash flow consistently strong and free cash flow closely tracking net income (roughly 0.9–1.0x across periods). Free cash flow growth has fluctuated year to year, but TTM (Trailing-Twelve-Months) is positive, and cash flow appears well-supported by profitability rather than accounting effects.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.52M	81.29M	83.24M	81.41M	78.22M	66.06M
Gross Profit	81.38M	77.87M	78.38M	76.71M	73.43M	61.34M
EBITDA	56.28M	55.20M	55.52M	54.57M	52.01M	41.11M
Net Income	41.28M	39.95M	40.18M	39.42M	39.92M	29.82M
Balance Sheet
Total Assets	53.75M	26.84M	28.97M	30.46M	26.90M	31.34M
Cash, Cash Equivalents and Short-Term Investments	39.73M	12.19M	13.44M	13.96M	14.30M	6.68M
Total Debt	62.55M	63.04M	72.78M	77.57M	52.42M	28.85M
Total Liabilities	80.09M	77.89M	88.12M	92.09M	65.98M	42.72M
Stockholders Equity	-26.34M	-51.05M	-59.16M	-61.63M	-39.08M	-11.38M
Cash Flow
Free Cash Flow	44.46M	41.96M	43.61M	40.11M	48.06M	39.06M
Operating Cash Flow	44.83M	42.16M	43.99M	43.79M	48.35M	43.22M
Investing Cash Flow	-172.70K	-194.90K	-383.90K	-3.67M	-283.10K	-4.16M
Financing Cash Flow	-42.07M	-43.02M	-43.90M	-37.88M	-43.31M	-57.56M

Winmark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 433.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 433.04 is below the 20-day moving average (MA) of 439.27, above the 50-day MA of 426.75, and above the 200-day MA of 413.59, indicating a bullish trend. The MACD of 9.33 indicates Negative momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 50.35 is Neutral, 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
LQDT	72 Outperform	$985.78M	36.90	14.56%	―	31.20%	38.38%
WINA	71 Outperform	$1.61B	40.29	―	3.35%	3.35%	1.97%
RERE	71 Outperform	$1.29B	36.45	7.42%	―	27.84%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SVV	61 Neutral	$1.62B	-686.09	-0.40%	―	6.45%	-102.30%
TDUP	54 Neutral	$635.72M	-16.32	-35.37%	―	-4.90%	50.77%
BNED	49 Neutral	$304.78M	-33.90	-3.86%	―	1.38%	63.65%

Winmark Corporate Events

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.