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Rent-A-CenterNasdaqGS:RCII Stock Report

Last Price


Market Cap







21 Jan, 2022


Company Financials +
RCII fundamental analysis
Snowflake Score
Future Growth4/6
Past Performance1/6
Financial Health2/6

RCII Stock Overview

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis.

Rent-A-Center Competitors










Brand Concepts



Price History & Performance

Summary of all time highs, changes and price drops for Rent-A-Center
Historical stock prices
Current Share PriceUS$41.16
52 Week HighUS$67.76
52 Week LowUS$41.03
1 Month Change-16.49%
3 Month Change-28.36%
1 Year Change-14.09%
3 Year Change137.23%
5 Year Change413.86%
Change since IPO2,584.35%

Recent News & Updates

Jan 14
Is It Time To Consider Buying Rent-A-Center, Inc. (NASDAQ:RCII)?

Is It Time To Consider Buying Rent-A-Center, Inc. (NASDAQ:RCII)?

While Rent-A-Center, Inc. ( NASDAQ:RCII ) might not be the most widely known stock at the moment, it received a lot of...

Dec 22

Rent-A-Center: Insider Buying And Strong Cash Flow

Shares of Rent-A-Center have fallen 25% since reaching an all-time high in August 2021 and over 10% since a downward revision to its FY21 earnings on November 3rd, 2021. Rising customer delinquencies in its recently bolstered Acima segment - a result of tapering pandemic benefits - were the reasons promulgated by management. With strong cash flow, plenty of retailer opportunities to exploit with Acima, and insider buying, this lease-to-own company merited closer examination. A full investment analysis follows in the paragraphs below.

Oct 18

Rent-A-Center Remains Too Cheap

The company, whilst somewhat cyclical, is benefiting from secular tailwinds. The Acima acquisition is bringing many benefits, like a better decision engine, smoother consumer experience, efficiency gains, growth and synergies. The shares are now below where they were after a very solid Q2.

Shareholder Returns

RCIIUS Specialty RetailUS Market

Return vs Industry: RCII underperformed the US Specialty Retail industry which returned -6% over the past year.

Return vs Market: RCII underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is RCII's price volatile compared to industry and market?
RCII volatility
RCII Average Weekly Movement7.9%
Specialty Retail Industry Average Movement7.5%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: RCII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RCII's weekly volatility (8%) has been stable over the past year.

About the Company

196014,320Mitch Fadel

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. The company operates in four segments: Rent-A-Center Business, Preferred Lease, Mexico, and Franchising. It offers furniture and accessories, appliances, consumer electronics, computers, tablets and smartphones, tools, tires, handbags, and other accessories under rental purchase agreements.

Rent-A-Center Fundamentals Summary

How do Rent-A-Center's earnings and revenue compare to its market cap?
RCII fundamental statistics
Market CapUS$2.72b
Earnings (TTM)US$181.43m
Revenue (TTM)US$4.13b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCII income statement (TTM)
Cost of RevenueUS$2.03b
Gross ProfitUS$2.09b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date


Earnings per share (EPS)2.74
Gross Margin50.72%
Net Profit Margin4.39%
Debt/Equity Ratio150.1%

How did RCII perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio


Is Rent-A-Center undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RCII ($41.16) is trading below our estimate of fair value ($172.68)

Significantly Below Fair Value: RCII is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: RCII is poor value based on its PE Ratio (15x) compared to the US Specialty Retail industry average (7.9x).

PE vs Market: RCII is good value based on its PE Ratio (15x) compared to the US market (16.7x).

Price to Earnings Growth Ratio

PEG Ratio: RCII is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: RCII is overvalued based on its PB Ratio (3.2x) compared to the US Specialty Retail industry average (2.5x).

Future Growth

How is Rent-A-Center forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCII's forecast earnings growth (26.3% per year) is above the savings rate (2%).

Earnings vs Market: RCII's earnings (26.3% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RCII's revenue (11.5% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: RCII's revenue (11.5% 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

Past Performance

How has Rent-A-Center performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RCII has a large one-off loss of $88.1M impacting its September 30 2021 financial results.

Growing Profit Margin: RCII's current net profit margins (4.4%) are lower than last year (7%).

Past Earnings Growth Analysis

Earnings Trend: RCII has become profitable over the past 5 years, growing earnings by 76.6% per year.

Accelerating Growth: RCII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RCII had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (151.5%).

Return on Equity

High ROE: Whilst RCII's Return on Equity (21.24%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Rent-A-Center's financial position?

Financial Position Analysis

Short Term Liabilities: RCII's short term assets ($349.4M) do not cover its short term liabilities ($548.7M).

Long Term Liabilities: RCII's short term assets ($349.4M) do not cover its long term liabilities ($1.7B).

Debt to Equity History and Analysis

Debt Level: RCII's net debt to equity ratio (131.5%) is considered high.

Reducing Debt: RCII's debt to equity ratio has increased from 144% to 150.1% over the past 5 years.

Debt Coverage: RCII's debt is well covered by operating cash flow (20.8%).

Interest Coverage: RCII's interest payments on its debt are well covered by EBIT (6.7x coverage).

Balance Sheet


What is Rent-A-Center current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RCII's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: RCII's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (3.55%).

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 (38.2%), 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 (16.8% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Mitch Fadel (64 yo)





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 ($USD9.22M) is above average for companies of similar size in the US market ($USD5.23M).

Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: RCII's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: RCII's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: RCII insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22%.

Top Shareholders

Company Information

Rent-A-Center, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Rent-A-Center, Inc.
  • Ticker: RCII
  • Exchange: NasdaqGS
  • Founded: 1960
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Implied Market Cap: US$2.722b
  • Shares outstanding: 66.14m
  • Website:

Number of Employees


  • Rent-A-Center, Inc.
  • 5501 Headquarters Drive
  • Plano
  • Texas
  • 75024
  • United States


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Annual Earnings2020/12/31

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.