WINA

Winmark

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Specialty Retail

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/15/26

Business Summary

Winmark operates a franchise-based specialty retail model focused on resale and value-oriented consumer goods, generating cash primarily through franchise royalties and fees rather than heavy inventory ownership. This structure drives capital efficiency, which is reflected in the 507.30% ROIC and supports strong free cash characteristics. The moat is embedded in its franchise network density, brand recognition in resale categories, and recurring royalty streams that scale without proportional capital investment. By outsourcing store-level operating risk to franchisees while retaining high-margin fee income, the company compounds capital far more efficiently than traditional retailers.

 


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VALUATION

P/E

39.4

Market Cap ($M USD)

$1,588

Forward P/E

33.8

PEG

-

PRICE TO SALES

19

PRICE TO BOOK

-

EV / EBITDA

28.9

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.90%

Annual Payout

$3.84

Payout Ratio

32.20%

Consecutive Years of Dividend Growth

5

5-Year Dividend Growth Rate

30.90%

Financial Health & Profitability

Earnings Per Share

$11.73

Next Year EPS Growth Estimate

$13.13

Next Year Revenue Growth Estimate

5.60%

Return on Equity (ROE)

-77.60%

FREE CASH FLOW

Operating Margin

63.40%

Debt-to-Equity

-

Piotroski F-Score

6

Altman Z-Score

19.1

Return on Invested Capital (ROIC)

507.30%

Current Ratio

2.5

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 39.4x earnings and 33.8x forward earnings, the market is clearly pricing WINA as a premium operator despite its $1,588M market cap, and the valuation only works if capital efficiency remains extreme. The Altman Z-Score of 19.1 signals negligible bankruptcy risk, while a Current Ratio of 2.5 reinforces balance sheet stability. However, the absence of a PEG ratio and the disconnect between EPS of 28.9 and EPS Next Year of $11.73 create earnings visibility concerns that make the multiple harder to justify. This is not a distressed mispricing; it is a quality compounder priced for continued excellence, with little room for operational disappointment.

AI Exposure / Tech Reliance

As a Specialty Retail company, WINA operates in a segment that can leverage AI through inventory optimization, demand forecasting, and franchise analytics rather than pure e-commerce disruption. AI-driven resale pricing models and customer data analytics could materially enhance margin capture in a fragmented secondhand market. The real tech resilience comes from operational efficiency gains rather than platform dominance, which fits a capital-light retail model.

The Bull Case

A GARP investor will focus immediately on the staggering 507.30% ROIC, which implies extraordinary capital efficiency and suggests a highly asset-light operating model. A Piotroski F-Score of 6 signals fundamentally sound operations without major balance sheet deterioration, while the 19.1 Altman Z-Score virtually eliminates solvency concerns. Despite a reported Operating Margin of -77.60%, the combination of 5.60% Return on Equity and a manageable 63.40% Debt/Equity ratio indicates that leverage is not excessive relative to capital structure stability. Institutional Ownership at $545.00 and a Short % of Float of 30.90% create the potential for volatility-driven upside if performance stabilizes, and the Forward P/E of 33.8 suggests investors still expect durable earnings power rather than collapse.

The Bear Case

There are real red flags. A 39.4 P/E multiple combined with a Short % of Float of 30.90% signals that a significant portion of the market is betting against the sustainability of earnings. Operating Margin at -77.60% is alarming on its face, and the absence of a PEG ratio removes a key valuation anchor for growth-adjusted investors. Debt/Equity of 63.40% is not trivial in a consumer cyclical business, and the projected EPS Next Year of $11.73 compared to current EPS of 28.9 suggests potential earnings compression that could make the 33.8 forward multiple expand quickly if estimates fall further.

Market Sentiment & Smart Money

Short Interest %

14.20%

Analyst Consensus

1

Average Analyst Price Target

$545.00

Institutional Ownership %

87.40%

1-Year Beta

0.7

Insider Buying % (6 Mo)

16.80%%

Distance to 52-Week High

84.20%

Distance to 52-Week Low

137.70%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.