Winmark (WINA) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: 2.58%
• Average Volume (3M): 78.59K
• Price to Earnings (P/E): 37.1
• Beta (1Y): 0.54
• Revenue Growth: 0.98%
• EPS Growth: 1.84%
• Country: US
• Employees: 89
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 3.02
• Shares Outstanding: 3,548,458
• 10 Day Avg. Volume: 83,316
• 30 Day Avg. Volume: 78,592
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 16.93
• Enterprise Value/Gross Profit: 17.59
• Enterprise Value/Ebitda: 25.04
• 1Y Price Target: $445.00
• Price Target Upside: 2.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $433.00 ▼(-0.48% Downside)

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 (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 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, 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: 435.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 435.07 is below the 20-day moving average (MA) of 488.87, below the 50-day MA of 464.29, and above the 200-day MA of 394.62, indicating a neutral trend. The MACD of -7.91 indicates Positive momentum. The RSI at 36.77 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, 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	72 Outperform	$724.38M	29.42	14.00%	―	38.40%	32.42%
SVV	69 Neutral	$1.99B	64.75	8.06%	―	4.47%	-8.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RERE	60 Neutral	$824.36M	32.97	5.65%	―	27.53%	―
WINA	58 Neutral	$1.48B	37.09	-118.80%	2.58%	0.98%	1.84%
TDUP	56 Neutral	$1.06B	―	-58.93%	―	-10.39%	14.92%
BNED	50 Neutral	$310.23M	―	-36.88%	―	1.38%	63.65%

Winmark Corporate Events

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®.

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.