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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Winmark Corp. To summarize, we found that Winmark Corp ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2009.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Winmark Corp, consider:
The compound growth rate in the free cash flow of Winmark Corp over the past 4.25 years is 1.07%; that's higher than 94.9% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than only 14.26% 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 44.54% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CMLS, LAZY, XPEL, SKY, and SGC can be thought of as valuation peers to WINA, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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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