Winmark (WINA) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: 3.01%
• Average Volume (3M): 83.59K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.46
• Revenue Growth: 0.98%
• EPS Growth: 1.84%
• Country: US
• Employees: 89
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Specialty Retail
• EPS (TTM): 2.89
• Shares Outstanding: 3,548,458
• 10 Day Avg. Volume: 54,040
• 30 Day Avg. Volume: 83,586
• PEG Ratio: 125.03
• Price to Book (P/B): -36.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.87
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 4.14
• Enterprise Value/Gross Profit: 17.02
• Enterprise Value/Ebitda: 6.16
• 1Y Price Target: $445.00
• Price Target Upside: 20.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $404.00 ▲(8.97%Upside)

Winmark's overall stock score is primarily influenced by its strong financial performance through profitability and cash flow generation. However, financial stability concerns due to leverage and negative equity, combined with mixed technical indicators and a relatively high valuation, moderate the score. Positive corporate events and a supportive analyst outlook provide a boost, but careful management of equity and capital expenditures remains essential.

Positive Factors

Financial Stability

Winmark's strong balance sheet and cash flow position indicate financial stability without needing external capital for growth.

Resale/Recommerce Model

Winmark's resale/recommerce model provides resilience in a challenging retail environment and a competitive advantage.

Negative Factors

Revenue Performance

Full year revenue of $81.3M declined 2.3% year over year, reflecting challenges in the business.

Sales Growth

Implied same-store sales grew 0.2%, below the 3.9% forecast, indicating a slight sequential decline.

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 Corporation makes money primarily through franchise fees and royalties. The company licenses its brand names and business systems to franchisees, who operate their own stores under Winmark's established brands. Franchisees pay an initial franchise fee to open a store, as well as ongoing royalties based on a percentage of their sales. This model allows Winmark to expand its brand presence with relatively low capital expenditure, as franchisees bear the cost of opening and operating individual stores. Additionally, Winmark provides franchise support services, which may include training, advertising, and operational guidance, generating further revenue. The company's earnings are influenced by the success of its franchisees, the demand for resale goods, and consumer trends favoring sustainable shopping options.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.29M	83.24M	81.41M	78.22M	66.06M
Gross Profit	77.91M	78.38M	76.71M	73.43M	61.34M
EBITDA	55.20M	55.52M	54.57M	52.01M	41.11M
Net Income	39.95M	40.18M	39.42M	39.92M	29.82M
Balance Sheet
Total Assets	26.84M	28.97M	30.46M	26.90M	31.34M
Cash, Cash Equivalents and Short-Term Investments	12.19M	13.44M	13.96M	14.30M	15.35M
Total Debt	63.04M	72.78M	77.57M	52.42M	28.85M
Total Liabilities	77.89M	88.12M	92.09M	65.98M	42.72M
Stockholders Equity	-51.05M	-59.16M	-61.63M	-39.08M	-11.38M
Cash Flow
Free Cash Flow	41.96M	43.61M	40.11M	48.06M	39.06M
Operating Cash Flow	42.16M	43.99M	43.79M	48.35M	43.22M
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: Negative
• Last Price: 370.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 370.74 is below the 20-day moving average (MA) of 375.09, below the 50-day MA of 398.19, and below the 200-day MA of 377.38, indicating a bearish trend. The MACD of -3.96 indicates Negative momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 42.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WINA.

Winmark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LQDT	76 Outperform	$733.06M	29.77	14.01%	―	35.78%	23.49%
SVV	74 Outperform	$1.78B	55.76	8.06%	―	4.47%	-8.19%
RERE	66 Neutral	$699.06M	43.80	3.45%	―	25.34%	―
WINA	64 Neutral	$1.32B	33.01	-118.80%	3.01%	0.98%	1.84%
Sector *	63 Neutral	£1.71B	10.45	5.76%	3.24%	0.23%	-35.26%
TDUP	62 Neutral	$976.72M	―	-69.51%	―	-10.55%	9.27%
BNED	50 Neutral	$300.70M	―	-36.88%	―	1.38%	63.65%

Winmark Corporate Events

Winmark Reports Q2 2025 Financial Results and Dividend

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.

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.