Winmark (WINA) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: 3.1%
• Average Volume (3M): 80.49K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.49
• 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: 100,624
• 30 Day Avg. Volume: 80,491
• 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: 1.19
• Enterprise Value/Revenue: 22.23
• Enterprise Value/Gross Profit: 23.09
• Enterprise Value/Ebitda: 33.39
• 1Y Price Target: $545.00
• Price Target Upside: 22.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 11.55
• Revenue Forecast (FY): $85.31M

• Rating: 69 Neutral
• Price Target: $461.00 ▲(3.70% Upside)

Winmark's strong profitability and operational efficiency are significant strengths, but these are offset by concerns over financial stability due to high leverage and negative equity. The stock's valuation appears high, though the attractive dividend yield and special dividend announcement provide positive sentiment. Technical indicators suggest neutral to slightly positive momentum.

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

Winmark demonstrates strong profitability and operational efficiency, supported by high margins and consistent cash flow generation. However, significant leverage and negative equity position present potential risks, impacting its financial stability.

Income Statement

The company demonstrates strong profitability with high gross and net profit margins. The TTM (Trailing-Twelve-Months) gross profit margin is 96.23% and net profit margin is 49.47%, indicating exceptional cost management. Revenue growth is modest but stable with a slight TTM increase of 2.59% from the previous year. Consistent EBIT and EBITDA margins further reflect strong operational efficiency.

Balance Sheet

The balance sheet reveals significant leverage, with a negative stockholders' equity of -$36.8 million as of TTM, leading to an undefined debt-to-equity ratio. Despite this, the company maintains a reasonable cash position relative to its liabilities. However, the negative equity raises concerns about financial stability and long-term solvency.

Cash Flow

The cash flow statement highlights robust operating cash flow, supporting healthy free cash flow generation. The TTM free cash flow to net income ratio stands at an impressive 1.08, indicating strong cash conversion. However, the high capital expenditures pose a challenge, affecting long-term cash flow sustainability.

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: 444.54
• 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 444.54 is above the 20-day moving average (MA) of 419.72, above the 50-day MA of 421.10, and above the 200-day MA of 394.62, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 62.71 is Neutral, neither overbought nor oversold. The STOCH value of 85.44 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
LQDT	72 Outperform	$974.96M	36.69	14.56%	―	31.20%	38.38%
RERE	71 Outperform	$1.19B	33.54	7.42%	―	27.84%	―
WINA	69 Neutral	$1.58B	39.63	―	3.10%	3.35%	1.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SVV	61 Neutral	$1.48B	-628.48	-0.40%	―	6.45%	-102.30%
TDUP	55 Neutral	$1.03B	-26.44	-35.37%	―	-4.90%	50.77%
BNED	50 Neutral	$308.19M	-0.16	―	―	1.38%	63.65%

Winmark Corporate Events

Winmark Announces Q3 Results and Special Dividend

On October 15, 2025, Winmark Corporation announced its financial results for the third quarter ending September 27, 2025, reporting a net income of $11,136,500 or $3.02 per share, slightly up from the previous year’s $11,120,700 or $3.03 per share. The company also declared a quarterly dividend of $0.96 per share and a special dividend of $10.00 per share, both payable on December 1, 2025, to shareholders on record as of November 12, 2025. The special dividend totals approximately $35.6 million, reflecting the company’s strong financial position and commitment to returning value to shareholders.