WINMARK CORP (WINA) Stock Fundamental Analysis
NASDAQ:WINA - Nasdaq - US9742501029 - Common Stock - Currency: USD
Taking everything into account, WINA scores 6 out of 10 in our fundamental rating. WINA was compared to 123 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
WINA had positive earnings in the past year.
WINA had a positive operating cash flow in the past year.
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
WINA's Return On Assets of 95.57% is amongst the best of the industry. WINA outperforms 99.19% of its industry peers.
WINA's Return On Invested Capital of 117.39% is amongst the best of the industry. WINA outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WINA is significantly above the industry average of 12.08%.
The last Return On Invested Capital (117.39%) for WINA is well below the 3 year average (208.58%), which needs to be investigated, but indicates that WINA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 95.57% | ||
| ROE | N/A | ||
| ROIC | 117.39% |
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
WINA has a better Profit Margin (49.48%) than 100.00% of its industry peers.
WINA's Profit Margin has improved in the last couple of years.
WINA has a Operating Margin of 65.17%. This is amongst the best in the industry. WINA outperforms 100.00% of its industry peers.
WINA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 96.24%, WINA belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
WINA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.17% | ||
| PM (TTM) | 49.48% | ||
| GM | 96.24% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WINA is creating value.
WINA has more shares outstanding than it did 1 year ago.
WINA has less shares outstanding than it did 5 years ago.
WINA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.58 indicates that WINA is not in any danger for bankruptcy at the moment.
WINA has a Altman-Z score of 15.58. This is amongst the best in the industry. WINA outperforms 99.19% of its industry peers.
The Debt to FCF ratio of WINA is 1.34, which is an excellent value as it means it would take WINA, only 1.34 years of fcf income to pay off all of its debts.
WINA has a Debt to FCF ratio of 1.34. This is amongst the best in the industry. WINA outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 15.58 |
ROIC/WACC13.16
WACC8.92%
2.3 Liquidity
A Current Ratio of 4.60 indicates that WINA has no problem at all paying its short term obligations.
WINA has a Current ratio of 4.60. This is amongst the best in the industry. WINA outperforms 98.37% of its industry peers.
WINA has a Quick Ratio of 4.54. This indicates that WINA is financially healthy and has no problem in meeting its short term obligations.
WINA has a better Quick ratio (4.54) than 98.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.6 | ||
| Quick Ratio | 4.54 |
3. Growth
3.1 Past
The earnings per share for WINA have decreased strongly by -15.88% in the last 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.
Looking at the last year, WINA shows a very negative growth in Revenue. The Revenue has decreased by -18.80% in the last year.
Measured over the past years, WINA shows a small growth in Revenue. The Revenue has been growing by 2.09% on average per year.
EPS 1Y (TTM)-15.88%
EPS 3Y1.3%
EPS 5Y6.8%
EPS Q2Q%1.4%
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y1.3%
Revenue growth 5Y2.09%
Sales Q2Q%1.47%
3.2 Future
Based on estimates for the next years, WINA will show a small growth in Earnings Per Share. The EPS will grow by 7.77% on average per year.
WINA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y8.18%
EPS Next 2Y7.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.57%
Revenue Next 2Y3.59%
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
A Price/Earnings ratio of 34.45 indicates a quite expensive valuation of WINA.
The rest of the industry has a similar Price/Earnings ratio as WINA.
When comparing the Price/Earnings ratio of WINA to the average of the S&P500 Index (26.48), we can say WINA is valued slightly more expensively.
WINA is valuated quite expensively with a Price/Forward Earnings ratio of 30.59.
WINA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.04. WINA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 30.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WINA indicates a slightly more expensive valuation: WINA is more expensive than 60.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WINA is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 25.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WINA may justify a higher PE ratio.
PEG (NY)4.21
PEG (5Y)5.07
EPS Next 2Y7.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WINA has a Yearly Dividend Yield of 1.02%.
WINA's Dividend Yield is a higher than the industry average which is at 5.00.
Compared to an average S&P500 Dividend Yield of 2.40, WINA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of WINA is nicely growing with an annual growth rate of 65.94%!
WINA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)65.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
95.70% of the earnings are spent on dividend by WINA. 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.
DP95.7%
EPS Next 2Y7.77%
EPS Next 3YN/A
386.9
-6.74 (-1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.46%
Inst Owner Change-1.05%
Ins Owners5.61%
Ins Owner Change1.64%
Market Cap1.37B
Analysts82.86
Price Target453.9 (17.32%)
Short Float %7.89%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend11.05
Dividend Growth(5Y)65.94%
DP95.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.33%
Min EPS beat(2)-3.03%
Max EPS beat(2)-1.62%
EPS beat(4)0
Avg EPS beat(4)-3.61%
Min EPS beat(4)-5.99%
Max EPS beat(4)-1.62%
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)0.66%
Min Revenue beat(2)-1.45%
Max Revenue beat(2)2.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
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)-6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 30.59 | ||
| P/S | 16.47 | ||
| P/FCF | 30.81 | ||
| P/OCF | 30.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.69 |
EPS(TTM)11.23
EY2.9%
EPS(NY)12.65
Fwd EY3.27%
FCF(TTM)12.56
FCFY3.25%
OCF(TTM)12.59
OCFY3.25%
SpS23.49
BVpS-10.38
TBVpS-11.24
PEG (NY)4.21
PEG (5Y)5.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 95.57% | ||
| ROE | N/A | ||
| ROCE | 150.29% | ||
| ROIC | 117.39% | ||
| ROICexc | 573.71% | ||
| ROICexgc | 980.63% | ||
| OM | 65.17% | ||
| PM (TTM) | 49.48% | ||
| GM | 96.24% | ||
| FCFM | 53.46% |
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-Score6
Asset Turnover1.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 8.78% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | 20.82 | ||
| Cash Conversion | 80.38% | ||
| Profit Quality | 108.06% | ||
| Current Ratio | 4.6 | ||
| Quick Ratio | 4.54 | ||
| Altman-Z | 15.58 |
F-Score6
WACC8.92%
ROIC/WACC13.16
Cap/Depr(3y)25.64%
Cap/Depr(5y)201.74%
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)-15.88%
EPS 3Y1.3%
EPS 5Y6.8%
EPS Q2Q%1.4%
EPS Next Y8.18%
EPS Next 2Y7.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y1.3%
Revenue growth 5Y2.09%
Sales Q2Q%1.47%
Revenue Next Year3.57%
Revenue Next 2Y3.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.5%
EBIT growth 3Y1.05%
EBIT growth 5Y4.19%
EBIT Next Year12.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.48%
FCF growth 3Y-4.43%
FCF growth 5Y0.24%
OCF growth 1Y0.28%
OCF growth 3Y-4.47%
OCF growth 5Y-3.6%