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Winmark Corp. (WINA)
NASDAQ:WINA
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Winmark (WINA) AI Stock Analysis

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WINA

Winmark

(NASDAQ:WINA)

Rating:61Neutral
Price Target:
$415.00
▼(-9.39% Downside)
Winmark's strong profitability and operational efficiency are significant strengths, but the company's financial stability is a concern due to high leverage and negative equity. The technical indicators suggest a neutral trend, and the valuation indicates the stock is relatively expensive. The positive corporate event of appointing a new director with technology expertise adds a strategic advantage.
Positive Factors
Business Model
Winmark's resale/recommerce model provides resilience in a challenging retail environment and a competitive advantage.
Financial Stability
Winmark's strong balance sheet and cash flow position indicate financial stability without needing external capital for growth.
Negative Factors
Revenue Performance
Full year revenue of $81.3M declined 2.3% year over year, reflecting challenges in the business.
Sales Performance
Implied same-store sales grew 0.2%, below the 3.9% forecast, indicating a slight sequential decline.

Winmark (WINA) vs. SPDR S&P 500 ETF (SPY)

Winmark Business Overview & Revenue Model

Company DescriptionWinmark Corporation (WINA) is a leading retail and franchise company that specializes in the resale of used merchandise through a network of franchise locations. The company operates primarily in the retail sector, with its core brands including Plato's Closet, Once Upon A Child, Play It Again Sports, and Style Encore. Winmark focuses on providing consumers with cost-effective options for buying and selling gently used items, catering to a diverse customer base that values sustainability and affordability in retail.
How the Company Makes MoneyWinmark 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, the company's significant leverage and negative equity position present potential risks, impacting its financial stability.
Income Statement
85
Very Positive
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
45
Neutral
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue81.29M83.24M81.41M78.22M66.06M
Gross Profit77.91M78.38M76.71M73.43M61.34M
EBITDA55.20M55.52M54.57M52.01M41.11M
Net Income39.95M40.18M39.42M39.92M29.82M
Balance Sheet
Total Assets26.84M28.97M30.46M26.90M31.34M
Cash, Cash Equivalents and Short-Term Investments12.19M13.44M13.96M14.30M15.35M
Total Debt63.04M72.78M77.57M52.42M28.85M
Total Liabilities77.89M88.12M92.09M65.98M42.72M
Stockholders Equity-51.05M-59.16M-61.63M-39.08M-11.38M
Cash Flow
Free Cash Flow41.96M43.61M40.11M48.06M39.06M
Operating Cash Flow42.16M43.99M43.79M48.35M43.22M
Investing Cash Flow-194.90K-383.90K-3.67M-283.10K-4.16M
Financing Cash Flow-43.02M-43.90M-37.88M-43.31M-57.56M

Winmark Technical Analysis

Technical Analysis Sentiment
Positive
Last Price457.99
Price Trends
50DMA
395.86
Positive
100DMA
391.02
Positive
200DMA
380.90
Positive
Market Momentum
MACD
18.30
Negative
RSI
72.56
Negative
STOCH
89.90
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 457.99 is above the 20-day moving average (MA) of 415.10, above the 50-day MA of 395.86, and above the 200-day MA of 380.90, indicating a bullish trend. The MACD of 18.30 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 89.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WINA.

Winmark Risk Analysis

Winmark disclosed 14 risk factors in its most recent earnings report. Winmark reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Winmark Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$827.78M32.0814.00%38.40%32.42%
73
Outperform
$1.78B55.618.06%4.47%-8.19%
69
Neutral
$1.02B38.665.65%27.53%
63
Neutral
$1.43B-58.93%-10.39%14.92%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
61
Neutral
$1.59B40.74-118.80%2.45%0.98%1.84%
50
Neutral
$296.61M-36.88%1.38%63.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WINA
Winmark
457.99
109.17
31.30%
LQDT
Liquidity Services
26.29
4.53
20.82%
BNED
Barnes & Noble Education
8.72
-4.28
-32.92%
TDUP
thredUP
11.49
10.58
1162.64%
RERE
ATRenew Inc. Sponsored ADR
4.73
2.44
106.55%
SVV
Savers Value Village Inc.
11.62
2.24
23.88%

Winmark Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Winmark Appoints New Director to Enhance Technology
Positive
Aug 8, 2025

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®.

DividendsFinancial Disclosures
Winmark Reports Q2 2025 Financial Results and Dividend
Positive
Jul 15, 2025

On July 15, 2025, Winmark Corporation announced its financial results for the second quarter ending June 28, 2025, reporting a net income of $10.6 million, or $2.89 per share, compared to $10.4 million, or $2.85 per share, in the same quarter of 2024. The company also declared a quarterly cash dividend of $0.96 per share, payable on September 2, 2025, to shareholders of record as of August 13, 2025. The announcement highlights Winmark’s continued investment in operations, technology, marketing, and innovation to maintain its leadership in the dynamic resale industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025