Winmark (WINA) has wrapped up FY 2025 with fourth quarter revenue of about US$21.1 million and basic EPS of US$2.79, capping a trailing twelve month revenue line of US$86.1 million and EPS of US$11.73. The company has seen revenue move from US$81.3 million to US$86.1 million over recent trailing periods, while trailing twelve month net income has shifted from US$40.0 million to US$41.7 million, giving investors a clear read on how the top and bottom lines are tracking into the latest print. With that backdrop, the focus now is firmly on how durable Winmark’s margin profile looks, as this appears to be a key driver of the story around these results.

See our full analysis for Winmark.

With the latest numbers on the table, the next step is to see how they line up against the main narratives around Winmark, highlighting where the data supports the story and where it starts to push back.

TTM net margin holds near 48%

• On a trailing twelve month basis, Winmark generated net income of US$41.7 million on US$86.1 million of revenue, which works out to a 48.4% net margin compared with 49.1% a year earlier.
• What stands out for a bullish take is that this margin level sits alongside earnings growth of 4.3% over the last year and 3.7% per year over five years. The high profitability lines up with the idea of a steady, fee driven franchising model, even if the margin ticked down slightly.

EPS trend stays above US$11 per share

• Trailing twelve month basic EPS came in at US$11.73 at FY 2025 year end, compared with US$11.36 at FY 2024 Q4, while quarterly EPS over FY 2025 ranged from US$2.79 to US$3.13.
• Supporters with a bullish angle often point to this kind of consistency. The earnings growth figures of 4.3% over the past year and 3.7% per year over five years back the idea that the business has been able to keep EPS above US$11 even as individual quarters move around inside that band.

To see how this earnings profile fits into a fuller story around growth, risks, and valuation, it helps to look at how other investors frame Winmark’s long term potential through community narratives like Curious how numbers become stories that shape markets? Explore Community Narratives.

Premium P/E and DCF valuation gap

• At a share price of US$451.55, Winmark is trading on a P/E of 38.7x, compared with an industry average of 20.1x and a peer average of 12.1x. The provided DCF fair value is US$312.00, which sits below the current price.
• Critics with a bearish view focus on this valuation gap, arguing that even with earnings growth of 4.3% over the last year and high net margins of 48.4%, the combination of a premium P/E, negative shareholders’ equity, high debt levels, and a 3.07% dividend that is not well covered by free cash flow makes the current price harder to square with the underlying trailing numbers.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Winmark's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Winmark’s rich 38.7x P/E, DCF fair value of US$312.00 below the current US$451.55 price, negative equity, higher debt, and less covered dividend all point to valuation and balance sheet pressure.

If those red flags have you wanting something sturdier, you may wish to review companies in our solid balance sheet and fundamentals stocks screener (41 results) that seek to combine financial strength with more grounded expectations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.