NasdaqGM:WINA

Stock Analysis Report

Executive Summary

Winmark Corporation operates as a franchisor of 5 retail store concepts that buy, sell, trade, and consign merchandise primarily in the United States and Canada.

Snowflake

Fundamentals

Acceptable track record with imperfect balance sheet.


Similar Companies

Share Price & News

How has Winmark's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

WINA

1.8%

US Specialty Retail

1.0%

US Market


1 Year Return

22.2%

WINA

6.7%

US Specialty Retail

8.0%

US Market

Return vs Industry: WINA exceeded the US Specialty Retail industry which returned 6.7% over the past year.

Return vs Market: WINA exceeded the US Market which returned 8% over the past year.


Shareholder returns

WINAIndustryMarket
7 Day4.0%1.8%1.0%
30 Day7.7%4.7%-0.07%
90 Day8.3%3.7%-1.0%
1 Year22.8%22.2%8.6%6.7%10.4%8.0%
3 Year74.6%72.5%42.0%34.7%46.2%36.7%
5 Year129.0%124.7%56.4%43.0%64.3%46.2%

Price Volatility Vs. Market

How volatile is Winmark's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Winmark undervalued compared to its fair value and its price relative to the market?

22.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WINA ($184.99) is trading above our estimate of fair value ($86.46)

Significantly Below Fair Value: WINA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WINA is poor value based on its PE Ratio (22.7x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: WINA is poor value based on its PE Ratio (22.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WINA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WINA has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Winmark forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.5%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Winmark has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Winmark performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WINA's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: WINA's earnings growth over the past year (4.3%) is below its 5-year average (9.8% per year).

Earnings vs Industry: WINA earnings growth over the past year (4.3%) underperformed the Specialty Retail industry 8.3%.


Return on Equity

High ROE: WINA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: WINA has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: WINA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Winmark's financial position?


Financial Position Analysis

Short Term Liabilities: WINA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WINA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WINA has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WINA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: WINA's debt is well covered by operating cash flow (131.7%).

Interest Coverage: WINA's interest payments on its debt are well covered by EBIT (23.3x coverage).


Balance Sheet

Inventory Level: WINA has a low level of unsold assets or inventory.

Debt Coverage by Assets: WINA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Winmark's current dividend yield, its reliability and sustainability?

0.54%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WINA's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WINA's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: WINA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WINA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WINA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WINA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Winmark's salary, the management and board of directors tenure and is there insider trading?

11.1yrs

Average management tenure


CEO

Brett Heffes (51yo)

3.7yrs

Tenure

US$949,700

Compensation

Mr. Brett D. Heffes has been the Chief Executive Officer of Winmark Corp. since February 2016 and served as its President since February 2011 until February 25, 2016. He has been Interim President of Winma ...


CEO Compensation Analysis

Compensation vs. Market: Brett's total compensation ($USD949.70K) is below average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.1yrs

Average Tenure

53yo

Average Age

Experienced Management: WINA's management team is seasoned and experienced (11.1 years average tenure).


Board Age and Tenure

19.1yrs

Average Tenure

70yo

Average Age

Experienced Board: WINA's board of directors are seasoned and experienced ( 19.1 years average tenure).


Insider Trading

Insider Buying: WINA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$616,85026 Jul 19
Brett Heffes
EntityIndividual
Role
Chief Executive Officer
CEO, Director & Interim President of Winmark Capital Corporation
Shares3,618
Max PriceUS$172.00
SellUS$323,90722 Mar 19
Ronald Olson
EntityIndividual
Shares1,900
Max PriceUS$170.53
SellUS$153,90014 Mar 19
Ronald Olson
EntityIndividual
Shares900
Max PriceUS$171.00
SellUS$365,27505 Mar 19
Ronald Olson
EntityIndividual
Shares2,100
Max PriceUS$174.44
SellUS$98,76130 Nov 18
Brett Heffes
EntityIndividual
Role
Chief Executive Officer
CEO, Director & Interim President of Winmark Capital Corporation
Shares656
Max PriceUS$150.55

Ownership Breakdown


Management Team

  • Brett Heffes (51yo)

    CEO, Director & Interim President of Winmark Capital Corporation

    • Tenure: 3.7yrs
    • Compensation: US$949.70k
  • John Morgan (77yo)

    Executive Chairman

    • Tenure: 19.6yrs
    • Compensation: US$624.80k
  • Steve Murphy (53yo)

    President of Franchising

    • Tenure: 13yrs
    • Compensation: US$949.70k
  • Gary Stofferahn

    Controller

    • Tenure: 0yrs
  • Leah Goff (57yo)

    Vice President of Human Resources

    • Tenure: 14.1yrs
  • Tony Ishaug (47yo)

    Executive VP

    • Tenure: 11.1yrs
    • Compensation: US$949.70k
  • Alan Majerko

    Vice President of Corporate Development

    • Tenure: 2.8yrs

Board Members

  • Brett Heffes (51yo)

    CEO, Director & Interim President of Winmark Capital Corporation

    • Tenure: 3.7yrs
    • Compensation: US$949.70k
  • John Morgan (77yo)

    Executive Chairman

    • Tenure: 19.6yrs
    • Compensation: US$624.80k
  • Larry Barbetta (56yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$93.94k
  • Kirk MacKenzie (80yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: US$93.94k
  • Paul Reyelts (72yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$100.94k
  • Mark Wilson (70yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: US$95.94k
  • Jenele Grassle (59yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$87.94k

Company Information

Winmark Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Winmark Corporation
  • Ticker: WINA
  • Exchange: NasdaqGM
  • Founded: 1988
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$707.213m
  • Shares outstanding: 3.82m
  • Website: https://www.winmarkcorporation.com

Number of Employees


Location

  • Winmark Corporation
  • 605 Highway 169 North
  • Suite 400
  • Minneapolis
  • Minnesota
  • 55441
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WINANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 1993

Biography

Winmark Corporation operates as a franchisor of 5 retail store concepts that buy, sell, trade, and consign merchandise primarily in the United States and Canada. The company operates through two segments,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:44
End of Day Share Price2019/10/22 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.