Winmark Corporation operates as a franchisor of five retail store concepts that buy, sell, trade, and consign merchandise primarily in the United States and Canada. The company was founded in 1988 and is based in Minneapolis, Minnesota.
WINA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WINA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Winmark Corp ranked in the 86th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1184% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Winmark Corp, consider:
In the past 4.5 years, Winmark Corp has a compound free cash flow growth rate of 0.95%; that's better than 93.7% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than merely 13.4% of the free cash flow producing stocks we're observing.
WINA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 45.42% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Winmark Corp? See LIVE, EVK, LAKE, GTN, and MHK.
Winmark (WINA) declares $0.25/share quarterly dividend, 400% increase from prior dividend of $0.05.Forward yield 0.63%Payable Sept. 1.In the wake of pandemic, the company had reduced quarterly dividend in May to $0.05/share from $0.25/share.See WINA Dividend Scorecard, Yield Chart, & Dividend Growth....
First paragraph, second sentence of release should read: The quarterly dividend of $0.25 per share will be paid September 1, 2020 to shareholders of record on the close of business on August 12, 2020. (instead of: The quarterly dividend of $0.25 per share will be paid September 1, 2020 to shareholders of record on the close of business on May 13, 2020).
Winmark Corporation (Nasdaq: WINA) announced today net income for the quarter ended June 27, 2020 of $5,055,200 (or $1.33 per share diluted) compared to net income of $7,301,900 (or $1.79 per share diluted) in the second quarter of 2019. For the six months ended June 27, 2020, net income was $12,372,200 (or $3.21 per share diluted) compared to net income of $14,574,100 (or $3.52 per share diluted) for the same period last year.
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