Winmark Corporation
Winmark Corporation Fundamental Analysis
Winmark Corporation (WINA) shows moderate financial fundamentals with a PE ratio of 30.84, profit margin of 48.19%, and ROE of -1.00%. 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 -24.1/100 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
WeakWINA struggles to generate sufficient returns from assets.
Valuation Score
ModerateWINA shows balanced valuation metrics.
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 30.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WINA's PEG of -25.66 indicates potential undervaluation.
Price to Book
The market values Winmark Corporation at -27.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.67 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 $48.19 as profit after all expenses.
Operating Margin
Core operations generate 62.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.00 in profit for every $100 of shareholder equity.
ROA
Winmark Corporation generates $1.17 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 $41.74M, reflecting robust business health.
Free Cash Flow
Winmark Corporation generates strong free cash flow of $41.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.62 in free cash annually.
FCF Yield
WINA converts 3.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-25.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
-27.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.00
vs 25 benchmark
ROA
Return on assets percentage
1.17
vs 25 benchmark
ROCE
Return on capital employed
3.08
vs 25 benchmark
How WINA Stacks Against Its Sector Peers
| Metric | WINA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.84 | 23.45 | Worse (Expensive) |
| ROE | -100.45% | 1195.00% | Weak |
| Net Margin | 48.19% | 2573.00% | Weak |
| Debt/Equity | -1.35 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.41 | 2.82 | Neutral |
| ROA | 116.76% | -8483.00% (disorted) | Strong |
WINA outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
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