Rent-A-Center
Market Cap
US$2.9b
Last Updated
2021/03/05 23:16 UTC
Data Sources
Company Financials +
Executive Summary
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with proven track record and pays a dividend.
Similar Companies
Share Price & News
How has Rent-A-Center's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RCII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: RCII's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-5.1%
RCII
-0.7%
US Specialty Retail
-0.4%
US Market
1 Year Return
181.0%
RCII
59.8%
US Specialty Retail
36.3%
US Market
Return vs Industry: RCII exceeded the US Specialty Retail industry which returned 54.8% over the past year.
Return vs Market: RCII exceeded the US Market which returned 31.2% over the past year.
Shareholder returns
RCII | Industry | Market | |
---|---|---|---|
7 Day | -5.1% | -0.7% | -0.4% |
30 Day | 19.6% | 0.1% | -1.3% |
90 Day | 53.8% | 12.1% | 4.9% |
1 Year | 192.8%181.0% | 60.8%59.8% | 39.2%36.3% |
3 Year | 576.1%536.1% | 92.1%84.4% | 48.7%39.2% |
5 Year | 327.6%286.1% | 89.0%74.1% | 117.0%92.8% |
Long-Term Price Volatility Vs. Market
How volatile is Rent-A-Center's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Have Insiders Sold Rent-A-Center, Inc. (NASDAQ:RCII) Shares Recently?1 week ago | Simply Wall St
Rent-A-Center (NASDAQ:RCII) Has Rewarded Shareholders With An Exceptional 589% Total Return On Their Investment3 weeks ago | Simply Wall St
Are Rent-A-Center's (NASDAQ:RCII) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
Is Rent-A-Center undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCII ($54.83) is trading below our estimate of fair value ($145.7)
Significantly Below Fair Value: RCII is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RCII is good value based on its PE Ratio (14.3x) compared to the US Specialty Retail industry average (18.2x).
PE vs Market: RCII is good value based on its PE Ratio (14.3x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: RCII is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: RCII is overvalued based on its PB Ratio (5x) compared to the US Specialty Retail industry average (2.9x).
Next Steps
Future Growth
How is Rent-A-Center forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
19.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCII's forecast earnings growth (19% per year) is above the savings rate (2%).
Earnings vs Market: RCII's earnings (19% per year) are forecast to grow slower than the US market (19.5% per year).
High Growth Earnings: RCII's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCII's revenue (14.5% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: RCII's revenue (14.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RCII's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Rent-A-Center performed over the past 5 years?
83.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCII has high quality earnings.
Growing Profit Margin: RCII's current net profit margins (7.4%) are higher than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: RCII has become profitable over the past 5 years, growing earnings by 83.8% per year.
Accelerating Growth: RCII's earnings growth over the past year (19.6%) is below its 5-year average (83.8% per year).
Earnings vs Industry: RCII earnings growth over the past year (19.6%) underperformed the Specialty Retail industry 22.7%.
Return on Equity
High ROE: RCII's Return on Equity (35.1%) is considered high.
Next Steps
Financial Health
How is Rent-A-Center's financial position?
Financial Position Analysis
Short Term Liabilities: RCII's short term assets ($295.4M) do not cover its short term liabilities ($614.5M).
Long Term Liabilities: RCII's short term assets ($295.4M) do not cover its long term liabilities ($544.4M).
Debt to Equity History and Analysis
Debt Level: RCII's debt to equity ratio (32.2%) is considered satisfactory.
Reducing Debt: RCII's debt to equity ratio has reduced from 246.4% to 32.2% over the past 5 years.
Debt Coverage: RCII's debt is well covered by operating cash flow (124.2%).
Interest Coverage: RCII's interest payments on its debt are well covered by EBIT (18.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Rent-A-Center current dividend yield, its reliability and sustainability?
2.26%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCII's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: RCII's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.72%).
Stability and Growth of Payments
Stable Dividend: RCII's dividend payments have been volatile in the past 10 years.
Growing Dividend: RCII's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.2%), RCII's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RCII's dividends in 3 years are forecast to be well covered by earnings (21% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Mitch Fadel (63 yo)
3.17yrs
Tenure
US$8,665,405
Compensation
Mr. Mitchell E. Fadel, also known as Mitch, has been Chief Executive Officer of Rent-A-Center, Inc since January 2, 2018. Mr. Fadel served as President of U.S. Pawn at EZCORP, Inc. from August 2015 to Dece...
CEO Compensation Analysis
Compensation vs Market: Mitch's total compensation ($USD8.67M) is above average for companies of similar size in the US market ($USD4.96M).
Compensation vs Earnings: Mitch's compensation has increased by more than 20% in the past year.
Leadership Team
Name | Position | Tenure | Compensation | Ownership |
---|---|---|---|---|
CEO & Director | 3.17yrs | US$8.67m | 0.49% $ 14.3m | |
Executive VP & CFO | 4.25yrs | US$1.84m | 0.15% $ 4.4m | |
Executive VP | 3.08yrs | US$1.15m | 0.075% $ 2.2m | |
Executive Vice President of Franchising | 9.17yrs | US$1.13m | 0.16% $ 4.5m | |
CTO & VP of IT | no data | no data | no data | |
Senior VP & Chief Information Officer | 2.08yrs | no data | no data | |
Executive VP | 0.75yr | no data | no data | |
Senior Director of Communications | no data | no data | no data | |
Vice President of Sales – Acceptance Now | 5.17yrs | no data | no data | |
Chief Human Resources Officer & Executive VP | 3.67yrs | no data | no data | |
Senior VP & Asst. General Counsel | no data | no data | no data | |
Executive Vice President of Acceptance Now | 3.33yrs | no data | no data |
3.3yrs
Average Tenure
48.5yo
Average Age
Experienced Management: RCII's management team is considered experienced (3.3 years average tenure).
Board Members
Name | Position | Tenure | Compensation | Ownership |
---|---|---|---|---|
CEO & Director | 3.17yrs | US$8.67m | 0.49% $ 14.3m | |
Independent Chairman | no data | US$365.79k | 0.038% $ 1.1m | |
Independent Director | 1.75yrs | US$58.75k | no data | |
Independent Director | 15.83yrs | US$236.54k | 0.0073% $ 214.4k | |
Independent Director | 1.75yrs | US$59.00k | no data | |
Independent Director | 1.08yrs | no data | no data | |
Independent Director | 3.75yrs | US$244.27k | 0.025% $ 735.8k | |
Independent Director | 0.17yr | no data | no data |
1.8yrs
Average Tenure
63yo
Average Age
Experienced Board: RCII's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RCII insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Rent-A-Center, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rent-A-Center, Inc.
- Ticker: RCII
- Exchange: NasdaqGS
- Founded: 1986
- Industry: Computer and Electronics Retail
- Sector: Retail
- Market Cap: US$2.918b
- Shares outstanding: 54.41m
- Website: https://www.rentacenter.com
Number of Employees
Location
- Rent-A-Center, Inc.
- 5501 Headquarters Drive
- Plano
- Texas
- 75024
- United States
Listings
Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
---|---|---|---|---|---|---|
RCII | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 1995 |
RAC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1995 |
RCII * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1995 |
Biography
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. The company operates through four segments: Rent-A-Center Business, Preferred Lease...
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2021/03/05 23:16 |
End of Day Share Price | 2021/03/05 00:00 |
Earnings | 2020/12/31 |
Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.