Winmark (WINA)

Do you buy used clothes? Probably not. If you got enough money to invest on the stock market, you probably have enough money to buy something new and clean, without any trace of sweat, lice and AIDS. 

But maybe you have enough money to invest because you save your money, dressing yourself like a fucking Hobo. Who knows.

The only times in my life I've bought used clothes was when I went to some kitsch party where we had to dress like in the 80's. I believe I share that disdain about used clothes with many people. But it's not because I don't like something that there's not a demand for that.

Anyway, there's a stock which is a franchiser of used stuff. The stock is Winmark (WINA). The five franchises of Winmark are :

Once upon a child

Style Encore

Play it again sports (only Winmark's franchise known in Quebec in my opinion)

Plato's closet

Music go round 

OK, not such an attractive industry at first sight. But the numbers are interesting.

Actual PE  : 23
Forward PE : 20

Average PE last 5 years: 22,5

Performance of the stock over the last 5 years : 118%

Performance of the stock over the last 10 years : 517%

EPS growth last year : 14%

Annual EPS growth last 5 years : 19%

Actual ROE : 60

Average ROE last 5 years : 60

Buyback/Dilution : Lots of buyback (float reduced by 20% over the last 3 years)

Debt : Very little

Dividend and Payout:  0,34% (div.) and 7% (payout)

Beta : 0,58

It's very hard to find a stock with such a high ROE, such a low debt and good growth (without being spectacular). Plus, there's no regulation in that industry.

Only negative point: the earnings are not that steady, even though the beta is low. 

Definitely a name to remember.