Winmark: A Compounder At A Reasonable Price

  • Winmark is a high-quality company with a franchise-based business model that generates high margins and sustainable growth.
  • The used goods market is expected to grow significantly, providing opportunities for Winmark to continue expanding.
  • Despite concerns about valuation multiples, there is potential for the stock to appreciate, with a fair price estimate of $460 and a 26% upside.

We believe that Winmark (NASDAQ:WINA) is a very high-quality company that might look expensive at first sight but is probably still cheap. The franchise-based business model with virtually zero owned assets assures the highest possible margins and low-attrition topline growth. We