0.89%
0.87%
6.33%
0.22%
9.93%
84.06%
99.28%

Company Description

Winmark Corporation, together with its subsidiaries, operates as a franchisor of retail store concepts that buy, sell, trade, and consign used merchandise primarily in the United States and Canada.The company operates through two segments, Franchising and Leasing.Its franchises retail stores operate under the Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round brand names.


The company's Plato's Closet brand stores buys and sells used clothing and accessories for the teenage and young adult market; and Once Upon A Child brand stores buys and sells used and new children's clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years.Its Play It Again Sports brand stores buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities, such as team sports, fitness, ski/snowboard, golf, and others; Style Encore brand stores buys and sells used women's apparel, shoes, and accessories; and Music Go Round brand stores buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories.In addition, the company is also involved in the middle-market equipment leasing business focusing on technology and business-essential equipment.


As of February 23, 2022, it had 1,271 franchised stores, as well as offers its products online at musicgoround.com, playitagainsports.com, and style-encore.com.Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

Market Data

Last Price 396.5
Change Percentage 0.89%
Open 397.3
Previous Close 393
Market Cap ( Millions) 1396
Volume 3312
Year High 431.67
Year Low 330.25
M A 50 398.72
M A 200 376.46

Financial Ratios

FCF Yield 3.02%
Dividend Yield 2.77%
ROE -85.43%
Debt / Equity -204.97%
Net Debt / EBIDTA 58.99%
Price To Book -41.36
Price Earnings Ratio 34.82
Price To FCF 33.1
Price To sales 17.07
EV / EBITDA 26.35

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Franchising

Expected Growth : 4.83 %

What the company do ?

Winmark Corporation's franchising model offers a unique opportunity for entrepreneurs to own and operate a resale franchise, providing a proven business model and ongoing support.

Why we expect these perspectives ?

Winmark Corporation's franchising growth of 4.83% is driven by increasing demand for used goods, successful brand recognition, and strategic store locations. Additionally, the company's diversified portfolio of brands, including Plato's Closet, Once Upon a Child, and Music Go Round, contributes to its growth. Furthermore, Winmark's focus on sustainability and eco-friendliness resonates with environmentally conscious consumers, driving sales and expansion.

Segment nΒ°2 -> Leasing

Expected Growth : 7.88 %

What the company do ?

Winmark Corporation's leasing program allows entrepreneurs to start a franchise business with minimal upfront costs, providing access to capital and equipment.

Why we expect these perspectives ?

Winmark Corporation's 7.88% leasing growth is driven by increasing demand for used goods, expansion into new markets, and strategic partnerships. Additionally, the company's diversified portfolio of brands, including Plato's Closet, Once Upon a Child, and Music Go Round, contributes to its growth. Furthermore, Winmark's focus on sustainability and eco-friendliness resonates with environmentally conscious consumers, driving leasing growth.

Winmark Corporation Products

Product Range What is it ?
Plato's Closet A retail franchise that buys and sells gently used clothing and accessories for teens and young adults
Once Upon A Child A retail franchise that buys and sells gently used children's clothing, toys, and equipment
Play It Again Sports A retail franchise that buys and sells new and used sports equipment and gear
Music Go Round A retail franchise that buys and sells new and used musical instruments and equipment
Style Encore A retail franchise that buys and sells gently used women's clothing and accessories

Winmark Corporation's Porter Forces

Winmark Corporation's products and services are moderately susceptible to substitutes, as customers have some alternatives available in the market.

Winmark Corporation's customers have limited bargaining power due to the company's strong brand presence and diversified product offerings.

Winmark Corporation's suppliers have moderate bargaining power, as the company relies on a few key suppliers for its operations.

The threat of new entrants is high in Winmark Corporation's industry, as the barriers to entry are relatively low and the market is attractive to new players.

The intensity of rivalry in Winmark Corporation's industry is high, as there are many established players competing for market share.

Capital Structure

Value
Debt Weight 662.82%
Debt Cost 5.38%
Equity Weight -562.82%
Equity Cost 8.08%
WACC -9.80%
Leverage -117.77%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
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AKA a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. It offers apparel, footwear, and accessories through its online stores under the …
TLF Tandy Leather Factory, Inc., together with its subsidiaries, operates as a retailer of leather and leathercraft-related items in North America and Spain. It offers leather, hand tools, hardware, kits, liquids, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
363.17$
Current Price
396.5$
Potential
-8.41%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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