- Winmark Corporation has an interesting business model based on fees and royalty income.
- WINA is a high return on capital business, with ROICs above 100% in the last two years.
- Between 2010 and 2019, WINA has grown net income from $10.3 million to $41.5 million, with EPS growing from $1.98 to $7.84. EPS.
- At 23x earnings, we believe the company is not expensive given its historical growth rates. Off-price retailers usually sell at a higher premium, averaging approximately 30x earnings, while the S&P is currently selling at 38x earnings.
For further details see:
Winmark Corporation: Asset-Light Business With High Operating Leverage, Yet Flying Under The Radar