NasdaqGM:WINA

Stock Analysis Report

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Market Cap

US$738.0m

Last Updated

2021/06/23 02:57 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: WINA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WINA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

WINA

0.9%

US Specialty Retail

-0.1%

US Market


1 Year Return

18.5%

WINA

69.8%

US Specialty Retail

39.0%

US Market

Return vs Industry: WINA underperformed the US Specialty Retail industry which returned 66% over the past year.

Return vs Market: WINA underperformed the US Market which returned 39% over the past year.


Shareholder returns

WINAIndustryMarket
7 Day0.7%0.9%-0.1%
30 Day3.4%2.7%2.6%
90 Day9.1%9.3%8.0%
1 Year21.4%18.5%70.9%69.8%41.2%39.0%
3 Year40.8%36.2%85.6%78.9%62.4%52.3%
5 Year110.3%102.0%129.1%112.9%132.3%106.2%

Long-Term 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?

23.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WINA ($197.8) is trading above our estimate of fair value ($101.57)

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 (23.2x) compared to the US Specialty Retail industry average (13.7x).

PE vs Market: WINA is poor value based on its PE Ratio (23.2x) compared to the US market (19.2x).


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.


Future Growth

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

22.6%

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.


Past Performance

How has Winmark performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WINA has high quality earnings.

Growing Profit Margin: WINA's current net profit margins (48.1%) are higher than last year (43.8%).


Past Earnings Growth Analysis

Earnings Trend: WINA's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: WINA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WINA had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (122.1%).


Return on Equity

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


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 (191.6%).

Interest Coverage: WINA's interest payments on its debt are well covered by EBIT (28.8x coverage).


Balance Sheet


Dividend

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

0.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WINA's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: WINA's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: WINA's dividend payments have been volatile in the past 10 years.

Growing Dividend: WINA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.4%), WINA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Brett Heffes (52 yo)

5.33yrs

Tenure

US$856,400

Compensation

Mr. Brett D. Heffes has been the Chairman and Chief Executive Officer of Winmark Corp. since March 1, 2020 and February 2016 respectively and served as its President since February 2011 until February 25, ...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD856.40K) is below average for companies of similar size in the US market ($USD2.34M).

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


Leadership Team

Experienced Management: WINA's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: WINA's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$738.029m
  • Shares outstanding: 3.70m
  • Website: https://www.winmarkcorporation.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 02:57
End of Day Share Price2021/06/22 00:00
Earnings2021/03/27
Annual Earnings2020/12/26


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.