WINMARK CORP (WINA) Stock Fundamental Analysis
NASDAQ:WINA - Nasdaq - US9742501029 - Common Stock - Currency: USD
Taking everything into account, WINA scores 7 out of 10 in our fundamental rating. WINA was compared to 121 industry peers in the Specialty Retail industry. WINA gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, WINA is valued expensive at the moment. 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.
Each year in the past 5 years WINA has been profitable.
In the past 5 years WINA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 134.67%, WINA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of WINA (189.87%) is better than 100.00% of its industry peers.
WINA had an Average Return On Invested Capital over the past 3 years of 208.58%. This is significantly above the industry average of 13.07%.
The 3 year average ROIC (208.58%) for WINA is well above the current ROIC(189.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 134.67% | ||
| ROE | N/A | ||
| ROIC | 189.87% |
ROA(3y)138.96%
ROA(5y)132.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)208.58%
ROIC(5y)203.98%
1.3 Margins
With an excellent Profit Margin value of 48.36%, WINA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
WINA's Profit Margin has improved in the last couple of years.
The Operating Margin of WINA (64.46%) is better than 100.00% of its industry peers.
WINA's Operating Margin has improved in the last couple of years.
WINA's Gross Margin of 95.87% is amongst the best of the industry. WINA outperforms 99.17% of its industry peers.
WINA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.46% | ||
| PM (TTM) | 48.36% | ||
| GM | 95.87% |
OM growth 3Y-0.25%
OM growth 5Y2.06%
PM growth 3Y-1.24%
PM growth 5Y2.34%
GM growth 3Y-0.16%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WINA is creating value.
WINA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WINA has been reduced compared to 5 years ago.
Compared to 1 year ago, WINA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 16.36 indicates that WINA is not in any danger for bankruptcy at the moment.
WINA's Altman-Z score of 16.36 is amongst the best of the industry. WINA outperforms 99.17% of its industry peers.
The Debt to FCF ratio of WINA is 1.37, which is an excellent value as it means it would take WINA, only 1.37 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.37, WINA belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 16.36 |
ROIC/WACC20.26
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.66 indicates that WINA has no problem at all paying its short term obligations.
WINA's Current ratio of 2.66 is amongst the best of the industry. WINA outperforms 90.08% of its industry peers.
A Quick Ratio of 2.62 indicates that WINA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.62, WINA belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.12% over the past year.
Measured over the past 5 years, WINA shows a small growth in Earnings Per Share. The EPS has been growing by 6.80% on average per year.
WINA shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.60%.
The Revenue has been growing slightly by 2.09% on average over the past years.
EPS 1Y (TTM)24.12%
EPS 3Y1.3%
EPS 5Y6.8%
EPS Q2Q%12.45%
Revenue 1Y (TTM)24.6%
Revenue growth 3Y1.3%
Revenue growth 5Y2.09%
Sales Q2Q%9%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
WINA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.57% yearly.
EPS Next Y8.18%
EPS Next 2Y7.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.57%
Revenue Next 2Y3.57%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.05, WINA can be considered very expensive at the moment.
WINA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WINA to the average of the S&P500 Index (27.30), we can say WINA is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.24, WINA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WINA is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. WINA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 29.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WINA is valued a bit more expensive than the industry average as 61.16% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, WINA is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.86 | ||
| EV/EBITDA | 19.81 |
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)4.04
PEG (5Y)4.86
EPS Next 2Y7.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WINA has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
WINA's Dividend Yield is a higher than the industry average which is at 4.99.
Compared to an average S&P500 Dividend Yield of 2.37, WINA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of WINA is nicely growing with an annual growth rate of 65.94%!
WINA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)65.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
78.65% of the earnings are spent on dividend by WINA. This is not a sustainable payout ratio.
WINA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.65%
EPS Next 2Y7.77%
EPS Next 3YN/A
369.82
+2.76 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.46%
Inst Owner Change0%
Ins Owners5.61%
Ins Owner Change1.64%
Market Cap1.31B
Analysts82.86
Price Target453.9 (22.74%)
Short Float %7.47%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend11.05
Dividend Growth(5Y)65.94%
DP78.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.42%
Min EPS beat(2)-3.81%
Max EPS beat(2)-3.03%
EPS beat(4)1
Avg EPS beat(4)-2.99%
Min EPS beat(4)-5.99%
Max EPS beat(4)0.87%
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)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-5.37%
Max Revenue beat(2)2.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-5.53%
Max Revenue beat(4)2.78%
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)-3.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 29.24 | ||
| P/S | 12.65 | ||
| P/FCF | 29.86 | ||
| P/OCF | 29.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.81 |
EPS(TTM)11.19
EY3.03%
EPS(NY)12.65
Fwd EY3.42%
FCF(TTM)12.38
FCFY3.35%
OCF(TTM)12.43
OCFY3.36%
SpS29.24
BVpS-13.01
TBVpS-13.91
PEG (NY)4.04
PEG (5Y)4.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 134.67% | ||
| ROE | N/A | ||
| ROCE | 243.07% | ||
| ROIC | 189.87% | ||
| ROICexc | 937.8% | ||
| ROICexgc | 2181.62% | ||
| OM | 64.46% | ||
| PM (TTM) | 48.36% | ||
| GM | 95.87% | ||
| FCFM | 42.36% |
ROA(3y)138.96%
ROA(5y)132.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)208.58%
ROIC(5y)203.98%
ROICexc(3y)654.26%
ROICexc(5y)834.68%
ROICexgc(3y)1882.71%
ROICexgc(5y)1685.36%
ROCE(3y)267.03%
ROCE(5y)261.14%
ROICexcg growth 3Y-31.02%
ROICexcg growth 5Y17.18%
ROICexc growth 3Y-34.38%
ROICexc growth 5Y8.99%
OM growth 3Y-0.25%
OM growth 5Y2.06%
PM growth 3Y-1.24%
PM growth 5Y2.34%
GM growth 3Y-0.16%
GM growth 5Y-0.16%
F-Score7
Asset Turnover2.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 20.07% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 24.38 | ||
| Cash Conversion | 65.17% | ||
| Profit Quality | 87.58% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 16.36 |
F-Score7
WACC9.37%
ROIC/WACC20.26
Cap/Depr(3y)32.47%
Cap/Depr(5y)205.84%
Cap/Sales(3y)0.29%
Cap/Sales(5y)1.5%
Profit Quality(3y)108.12%
Profit Quality(5y)115.18%
High Growth Momentum
Growth
EPS 1Y (TTM)24.12%
EPS 3Y1.3%
EPS 5Y6.8%
EPS Q2Q%12.45%
EPS Next Y8.18%
EPS Next 2Y7.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)24.6%
Revenue growth 3Y1.3%
Revenue growth 5Y2.09%
Sales Q2Q%9%
Revenue Next Year3.57%
Revenue Next 2Y3.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y25.27%
EBIT growth 3Y1.05%
EBIT growth 5Y4.19%
EBIT Next Year12.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.01%
FCF growth 3Y-4.43%
FCF growth 5Y0.24%
OCF growth 1Y-0.94%
OCF growth 3Y-4.47%
OCF growth 5Y-3.6%