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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1282
Positioning
Market Dominance
Retail Trade
Retail
$1.8B
Brett D. Heffes
Winmark Corporation operates as a franchisor of retail store concepts that buy, sell, trade, and consign used merchandise. 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. As of February 23, 2022, Winmark had 1,271 franchised stores.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = WINA ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ARCO Arcos Dorados Holdings Inc. | 73 | 85 | 89 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$IMKTA INGLES MARKETS INC | 70 | 73 | 89 | 76 | 11.3x | 4.1x | 6.9% | 4.1% | 24.3% | 2.8% | 1.9% | -3.4% | 1.1% | 33.0x | $1.2B | VS | |
$SGU STAR GROUP, L.P. | 69 | 82 | 79 | 63 | - | - | -25.2% | -10.6% | 28.1% | -6.3% | -5.4% | -7.8% | 6.1% | 57.0x | $396M | VS | |
$EZPW EZCORP INC | 68 | 77 | 82 | 89 | 7.2x | 4.2x | 12.0% | 6.2% | 59.1% | 11.6% | 8.5% | 10.5% | 0.0% | 52.0x | $764M | VS | |
$HTHT H World Group Ltd | 68 | 91 | 44 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DDL Dingdong (Cayman) Ltd | 68 | 86 | 82 | 57 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$SBH Sally Beauty Holdings, Inc. | 68 | 83 | 92 | 77 | 5.1x | 2.3x | 32.0% | 6.6% | 51.5% | 8.4% | 4.9% | -1.0% | 0.0% | 178.0x | $934M | VS | |
$SPH SUBURBAN PROPANE PARTNERS LP | 67 | 80 | 90 | 53 | - | 13.0x | 0.4% | -3.5% | 61.7% | 2.1% | -5.7% | 2.2% | 7.1% | 190.0x | $1.2B | VS | |
$IHG INTERCONTINENTAL HOTELS GROUP PLC /NEW/ | 67 | 63 | 81 | 67 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ROST ROSS STORES, INC. | 67 | 63 | 55 | 83 | 25.2x | 16.5x | 34.8% | 13.3% | 28.0% | 11.6% | 9.1% | 10.4% | 1.0% | 26.0x | $51.6B | VS | |
$WINA WINMARK CORP | 55 | 47 | 45 | 68 | 38.5x | 29.1x | -137.4% | 79.7% | 97.0% | 65.3% | 49.6% | 12.5% | 2.2% | - | $1.8B | ||
| SECTOR BENCH | - | - | - | - | - | 21.4x | 9.1x | 9.6% | 3.6% | 37.3% | 4.4% | 2.4% | 3.7% | 0.0% | 0.7x | - | REF |
WINMARK CORP (WINA) receives a "Hold" rating with a composite score of 54.9/100. It ranks #1282 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Retail Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for WINA.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 47 | 53 | -6DRAG |
| MOMENTUM | 68 | 74 | -6DRAG |
| VALUATION | 45 | 46 | -1NEUTRAL |
| INVESTMENT | 35 | 60 | -25DRAG |
| STABILITY | 76 | 84 | -8DRAG |
| SHORT INT | 47 | 49 | -2NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 55.8% vs WACC 9.4% (spread +46.4%)
GM 97% vs sector 37%, OM 65% vs sector 4%
Capital turnover 1.12x
Rev growth 12%, 10yr history
Interest coverage 24.5x, Net debt/EBITDA 1.4x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate WINMARK CORP (WINA) as a Hold with a composite score of 54.9/100 at a current price of $447.98. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
WINMARK CORP holds a top-quartile position (#0 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 54.9/100 places it at rank #1282 in our full universe.
The near-term outlook is constructive, with revenue growing at 12% and momentum in the 68th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Low
Standard
Fair Value
Gross margins of 97% signal strong pricing power.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 38.5x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
WINMARK CORP represents a hold based on multi-factor quantitative performance.
Our model assigns WINMARK CORP a Hold rating, with a composite score of 54.9/100 and 3 out of 5 stars. Ranked #1282 of 7,333 stocks, WINA presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 47/100, WINA shows adequate but unremarkable business quality. The company reports a return on equity of -137.4% (sector avg: 9.6%), gross margins of 97.0% (sector avg: 37.3%), net margins of 49.6% (sector avg: 2.4%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 45/100, WINA appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 38.46x, an EV/EBITDA of 29.14x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
WINMARK CORP's investment score of 35/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 12.5% vs. a sector average of 3.7% and a return on assets of 79.7% (sector: 3.6%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
WINA demonstrates moderate momentum with a score of 68/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 12.5% year-over-year, while a beta of 0.50 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
WINA shows good financial stability with a score of 76/100. Key stability metrics include a beta of 0.50. This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 47/100 for WINA suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include small-cap liquidity risk. With a $1.8B market cap (small-cap), WINMARK CORP may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
WINA pays a solid dividend yield of 2.2%, contributing an income component to total returns. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
WINMARK CORP is a small-cap company in the Retail Trade sector, ranked #0 of 50 in its sector (100th percentile) and #1282 of 7,333 overall (83rd percentile). Key comparisons include ROE of -137.4% trailing the 9.6% sector median and operating margins of 65.3% above the 4.4% sector average. This top-quartile standing reflects exceptional competitive strength relative to Retail Trade peers.
While WINA currently exhibits a HOLD profile, superior opportunities exist within the RETAIL TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Retail Trade Alpha →Quant Factor Profile
Key factor gap
Stability (76) vs Investment (35) — closing this gap could shift the rating.
EV/EBITDA 220% ABOVE SECTOR MEDIAN
ROE 1533% BELOW SECTOR MEDIAN
Gross Margin 160% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081

About WINMARK CORP 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 cl

Winmark Corporation (NASDAQ:WINA) has announced a quarterly dividend of $0.96 per share, payable on March 2nd to shareholders of record on February 11th. The specialty retailer has consistently increased its dividend for the past five years, with its current dividend yield at 0.8% and a healthy payout ratio of 31%. Shares were trading at $459.70 at the time of the announcement.

Vest Financial LLC significantly increased its stake in Winmark Corporation (NASDAQ:WINA) by 137.2%, now holding 6,097 shares valued at $3.04 million. Other major institutional investors like Fisher Asset Management and AllianceBernstein also hold substantial positions, with institutional ownership reaching 73.32%. Analysts maintain a "Buy" rating for Winmark, which currently trades at $451.59 with a market cap of $1.61 billion.

Winmark's CEO, Brett D. Heffes, recently invested $1.21 million to purchase 2,712 shares at $444.54 each, signaling strong executive confidence in the company's future. This acquisition, along with stock options granted to other executives at the same price, sets a key psychological and technical reference point for the stock. Despite a slight earnings per share miss, the company's revenue exceeded expectations, and institutional investors hold a significant stake.
Winmark Corporation (NASDAQ:WINA) is currently trading at a high price-to-earnings (P/E) ratio of 36.8x, significantly above the market average, despite its recent earnings growth being slower than most other companies. The optimistic P/E suggests investors are expecting a significant recovery, yet the sole analyst's forecast for next year's growth is only 4.1%, much lower than the market's projected 16% expansion. This disparity indicates that investor optimism for Winmark might be unsustainable, especially given the company's past struggles to grow earnings.