WINMARK CORP (WINA) Stock Fundamental Analysis
NASDAQ:WINA - Nasdaq - US9742501029 - Common Stock
We assign a fundamental rating of 6 out of 10 to WINA. WINA was compared to 119 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making WINA a very profitable company, without any liquidiy or solvency issues. WINA is quite expensive at the moment. It does show a decent growth rate. With these ratings, WINA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
WINA had positive earnings in the past year.
In the past year WINA had a positive cash flow from operations.
In the past 5 years WINA has always been profitable.
WINA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WINA (94.14%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 122.11%, WINA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
WINA had an Average Return On Invested Capital over the past 3 years of 223.55%. This is significantly above the industry average of 12.38%.
The last Return On Invested Capital (122.11%) for WINA is well below the 3 year average (223.55%), which needs to be investigated, but indicates that WINA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 94.14% | ||
| ROE | N/A | ||
| ROIC | 122.11% |
ROA(3y)138.79%
ROA(5y)112.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)223.55%
ROIC(5y)178.96%
1.3 Margins
WINA has a Profit Margin of 48.00%. This is amongst the best in the industry. WINA outperforms 100.00% of its industry peers.
WINA's Profit Margin has improved in the last couple of years.
WINA has a better Operating Margin (63.70%) than 100.00% of its industry peers.
WINA's Operating Margin has improved in the last couple of years.
WINA has a Gross Margin of 95.39%. This is amongst the best in the industry. WINA outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of WINA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.7% | ||
| PM (TTM) | 48% | ||
| GM | 95.39% |
OM growth 3Y1.72%
OM growth 5Y2.11%
PM growth 3Y2.3%
PM growth 5Y3.06%
GM growth 3Y-0.76%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WINA is creating value.
Compared to 1 year ago, WINA has more shares outstanding
WINA has less shares outstanding than it did 5 years ago.
WINA has a better debt/assets ratio than last year.
2.2 Solvency
WINA has an Altman-Z score of 15.22. This indicates that WINA is financially healthy and has little risk of bankruptcy at the moment.
WINA has a Altman-Z score of 15.22. This is amongst the best in the industry. WINA outperforms 99.14% of its industry peers.
The Debt to FCF ratio of WINA is 1.56, which is an excellent value as it means it would take WINA, only 1.56 years of fcf income to pay off all of its debts.
WINA has a Debt to FCF ratio of 1.56. This is in the better half of the industry: WINA outperforms 78.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 15.22 |
ROIC/WACC12.09
WACC10.1%
2.3 Liquidity
WINA has a Current Ratio of 3.84. This indicates that WINA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WINA (3.84) is better than 93.97% of its industry peers.
WINA has a Quick Ratio of 3.80. This indicates that WINA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.80, WINA belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 3.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.49% over the past year.
Measured over the past years, WINA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.50% on average per year.
WINA shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.82%.
WINA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.80% yearly.
EPS 1Y (TTM)18.49%
EPS 3Y13.04%
EPS 5Y8.5%
EPS Q2Q%-0.66%
Revenue 1Y (TTM)20.82%
Revenue growth 3Y7.99%
Revenue growth 5Y2.8%
Sales Q2Q%-3.63%
3.2 Future
The Earnings Per Share is expected to grow by 5.71% on average over the next years.
Based on estimates for the next years, WINA will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y1.11%
EPS Next 2Y5.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.47%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
WINA is valuated quite expensively with a Price/Earnings ratio of 29.44.
Compared to the rest of the industry, the Price/Earnings ratio of WINA is on the same level as its industry peers.
WINA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.94.
With a Price/Forward Earnings ratio of 31.82, WINA can be considered very expensive at the moment.
WINA's Price/Forward Earnings ratio is in line with the industry average.
WINA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 31.82 |
4.2 Price Multiples
WINA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WINA is more expensive than 62.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WINA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.76 | ||
| EV/EBITDA | 21.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WINA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)26.53
PEG (5Y)3.46
EPS Next 2Y5.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WINA has a yearly dividend return of 0.93%, which is pretty low.
WINA's Dividend Yield is a higher than the industry average which is at 3.27.
With a Dividend Yield of 0.93, WINA pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of WINA is nicely growing with an annual growth rate of 86.26%!
WINA has been paying a dividend for at least 10 years, so it has a reliable track record.
WINA has decreased its dividend recently.
Dividend Growth(5Y)86.26%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WINA pays out 91.59% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WINA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP91.59%
EPS Next 2Y5.71%
EPS Next 3YN/A
WINMARK CORP
NASDAQ:WINA (1/17/2025, 8:00:02 PM)
After market: 392.4 0 (0%)392.4
+3.81 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.3%
Inst Owner Change0.18%
Ins Owners5.36%
Ins Owner Change-1.17%
Market Cap1.38B
Analysts82.86
Price Target453.9 (15.67%)
Short Float %4.32%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend12.55
Dividend Growth(5Y)86.26%
DP91.59%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.56%
Min EPS beat(2)-5.99%
Max EPS beat(2)0.87%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-5.53%
Max Revenue beat(2)-2.41%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.44 | ||
| Fwd PE | 31.82 | ||
| P/S | 13.56 | ||
| P/FCF | 32.76 | ||
| P/OCF | 32.53 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.46 |
EPS(TTM)13.33
EY3.4%
EPS(NY)12.33
Fwd EY3.14%
FCF(TTM)11.98
FCFY3.05%
OCF(TTM)12.06
OCFY3.07%
SpS28.95
BVpS-9.59
TBVpS-10.53
PEG (NY)26.53
PEG (5Y)3.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 94.14% | ||
| ROE | N/A | ||
| ROCE | 156.76% | ||
| ROIC | 122.11% | ||
| ROICexc | 1202.28% | ||
| ROICexgc | 5820.79% | ||
| OM | 63.7% | ||
| PM (TTM) | 48% | ||
| GM | 95.39% | ||
| FCFM | 41.38% |
ROA(3y)138.79%
ROA(5y)112.67%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)223.55%
ROIC(5y)178.96%
ROICexc(3y)1017.15%
ROICexc(5y)802.18%
ROICexgc(3y)2322.59%
ROICexgc(5y)1609.17%
ROCE(3y)287%
ROCE(5y)229.75%
ROICexcg growth 3Y53.43%
ROICexcg growth 5Y61.17%
ROICexc growth 3Y6.42%
ROICexc growth 5Y26.98%
OM growth 3Y1.72%
OM growth 5Y2.11%
PM growth 3Y2.3%
PM growth 5Y3.06%
GM growth 3Y-0.76%
GM growth 5Y-0.34%
F-Score6
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 37.17% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 22.47 | ||
| Cash Conversion | 64.63% | ||
| Profit Quality | 86.22% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 3.8 | ||
| Altman-Z | 15.22 |
F-Score6
WACC10.1%
ROIC/WACC12.09
Cap/Depr(3y)46.04%
Cap/Depr(5y)659.96%
Cap/Sales(3y)0.33%
Cap/Sales(5y)3.96%
Profit Quality(3y)113.27%
Profit Quality(5y)120.01%
High Growth Momentum
Growth
EPS 1Y (TTM)18.49%
EPS 3Y13.04%
EPS 5Y8.5%
EPS Q2Q%-0.66%
EPS Next Y1.11%
EPS Next 2Y5.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.82%
Revenue growth 3Y7.99%
Revenue growth 5Y2.8%
Sales Q2Q%-3.63%
Revenue Next Year0.47%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.83%
EBIT growth 3Y9.85%
EBIT growth 5Y4.97%
EBIT Next Year6.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.84%
FCF growth 3Y3.74%
FCF growth 5Y31.38%
OCF growth 1Y-10.62%
OCF growth 3Y0.59%
OCF growth 5Y4.72%