Winmark (WINA) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: 3.3%
• Average Volume (3M): 71.29K
• Price to Earnings (P/E): 37.2
• 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: 65,978
• 30 Day Avg. Volume: 71,292
• 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: 1.26
• Enterprise Value/Revenue: 22.23
• Enterprise Value/Gross Profit: 23.09
• Enterprise Value/Ebitda: 33.39
• 1Y Price Target: $545.00
• Price Target Upside: 30.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 11.55
• Revenue Forecast (FY): $85.31M

• Rating: 58 Neutral
• Price Target: $433.00 ▲(3.68% Upside)

Winmark's strong profitability and cash flow generation are offset by significant financial leverage and negative equity, posing risks to financial stability. The stock's bearish technical indicators and high valuation further weigh on its attractiveness.

Positive Factors

Strong Profitability

Winmark's high gross and net profit margins indicate exceptional cost management and operational efficiency, contributing to its long-term financial health.

Cash Flow Generation

Strong operating cash flow and free cash flow generation ensure Winmark can sustain operations, invest in growth, and return capital to shareholders over the long term.

Leadership Change

The appointment of a new Chief Marketing Officer could enhance Winmark's brand strategy and market presence, supporting long-term growth and competitive positioning.

Negative Factors

Significant Financial Leverage

High leverage and negative equity raise concerns about Winmark's financial stability and solvency, potentially limiting its ability to invest in growth opportunities.

High Capital Expenditures

Elevated capital expenditures could strain Winmark's cash flow, impacting its ability to maintain financial flexibility and invest in future growth initiatives.

Modest Revenue Growth

While stable, modest revenue growth may limit Winmark's ability to capitalize on market opportunities and expand its market share in a competitive retail environment.

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 franchise fees, royalties, and the sale of inventory. Franchisees pay an initial franchise fee and ongoing royalties based on their sales, which are significant revenue streams for the company. Additionally, Winmark earns income from the sale of used goods through its franchise locations, where franchisees purchase inventory from consumers and resell it at a profit. The company's emphasis on building a strong brand and supporting franchisees through training and marketing also helps drive sales and profitability. Partnerships with franchisees and a focus on expanding their retail footprint contribute to Winmark's financial growth.

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: 417.64
• 50DMA: Negative
• 100DMA: Negative
• 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 417.64 is above the 20-day moving average (MA) of 406.32, below the 50-day MA of 439.97, and above the 200-day MA of 389.48, indicating a neutral trend. The MACD of -5.26 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 31.63 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	$856.69M	32.24	14.56%	―	31.20%	38.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RERE	61 Neutral	$901.30M	25.42	7.42%	―	27.84%	―
WINA	58 Neutral	$1.49B	37.23	―	3.30%	3.35%	1.97%
SVV	58 Neutral	$1.30B	―	-0.40%	―	6.45%	-102.30%
BNED	50 Neutral	$212.50M	―	―	―	1.38%	63.65%
TDUP	45 Neutral	$881.00M	―	-35.37%	―	-4.90%	50.77%

Winmark Corporate Events

Winmark Corporation Reports Steady Third Quarter Growth

Winmark Corporation, known as the Resale Company®, is a prominent franchisor in the sustainability and small business sector, overseeing popular resale franchises like Plato’s Closet® and Once Upon A Child®. In its latest earnings report, Winmark Corporation announced a net income of $11.1 million for the third quarter of 2025, slightly up from the previous year’s $11.1 million. Over the first nine months of 2025, the company reported a net income of $31.7 million, reflecting a year-over-year increase from $30.4 million.

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.

The most recent analyst rating on (WINA) stock is a Hold with a $433.00 price target. To see the full list of analyst forecasts on Winmark stock, see the WINA Stock Forecast page.

Winmark Appoints New Director to Enhance Technology

On August 6, 2025, Jenele C. Grassle announced she would not seek re-election to Winmark Corporation’s Board of Directors at the upcoming Annual Meeting in April 2026, ending her 24-year tenure during which she significantly contributed to the company’s governance. In response, Winmark’s Board increased its number of directors from seven to eight and appointed Keith Credendino, a seasoned executive with extensive technology leadership experience, to the Board and Audit Committee effective August 7, 2025. This move is expected to enhance Winmark’s technology offerings and support its mission to provide Resale for Everyone®.

The most recent analyst rating on (WINA) stock is a Buy with a $445.00 price target. To see the full list of analyst forecasts on Winmark stock, see the WINA Stock Forecast page.