Winmark Corporation Fundamental Analysis (NASDAQ: WINA)
Winmark Corporation (NASDAQ: WINA) shows moderate financial fundamentals with a PE ratio of 24.07, profit margin of 45.11%, and ROE of -94.69%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 5.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -12.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WINA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWINA demonstrates superior asset utilization.
Valuation Score
ExcellentWINA trades at attractive valuation levels.
Growth Score
ModerateWINA shows steady but slowing expansion.
Financial Health Score
ExcellentWINA maintains a strong and stable balance sheet.
Profitability Score
ModerateWINA maintains healthy but balanced margins.
Key Financial Metrics
Is WINA Expensive or Cheap?
P/E Ratio
WINA trades at 24.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WINA's PEG of -35.06 indicates potential undervaluation.
Price to Book
The market values Winmark Corporation at -26.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.08 times EBITDA. This signals the market has high growth expectations.
How Well Does WINA Make Money?
Net Profit Margin
For every $100 in sales, Winmark Corporation keeps $45.11 as profit after all expenses.
Operating Margin
Core operations generate 59.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-94.69 in profit for every $100 of shareholder equity.
ROA
Winmark Corporation generates $91.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Winmark Corporation generates strong operating cash flow of $44.12M, reflecting robust business health.
Free Cash Flow
Winmark Corporation generates strong free cash flow of $43.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.20 in free cash annually.
FCF Yield
WINA converts 4.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-35.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
-26.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.95
vs 25 benchmark
ROA
Return on assets percentage
0.92
vs 25 benchmark
ROCE
Return on capital employed
1.57
vs 25 benchmark
How WINA Stacks Against Its Sector Peers
| Metric | WINA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.07 | 24.50 | Neutral |
| ROE | -94.69% | 962.00% | Weak |
| Net Margin | 45.11% | -2429.00% (disorted) | Strong |
| Debt/Equity | -1.67 | 0.63 | Strong (Low Leverage) |
| Current Ratio | 3.20 | 2.37 | Strong Liquidity |
| ROA | 91.94% | 346.00% | Weak |
WINA outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Winmark Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.49%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
46.35%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
8.84%
Industry Style: Cyclical, Growth, Discretionary
Growing