Rent-A-Center
Market Cap
US$1.6b
Last Updated
2020/09/27 05:58 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
Good value 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.4%
RCII
-1.3%
US Specialty Retail
-0.8%
US Market
1 Year Return
16.4%
RCII
20.0%
US Specialty Retail
13.8%
US Market
Return vs Industry: RCII underperformed the US Specialty Retail industry which returned 20% over the past year.
Return vs Market: RCII exceeded the US Market which returned 13.8% over the past year.
Shareholder returns
| RCII | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.4% | -1.3% | -0.8% |
| 30 Day | -6.1% | -4.1% | -5.0% |
| 90 Day | 10.2% | 18.3% | 10.1% |
| 1 Year | 20.3%16.4% | 21.3%20.0% | 16.4%13.8% |
| 3 Year | 171.8%160.4% | 68.2%60.7% | 36.9%27.8% |
| 5 Year | 36.5%23.5% | 58.5%46.2% | 85.0%64.2% |
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
6 days ago | Simply Wall St
Rent-A-Center, Inc.'s (NASDAQ:RCII) Low P/E No Reason For Excitement2 weeks ago | Simply Wall St
Rent-A-Center (NASDAQ:RCII) Has A Pretty Healthy Balance Sheet3 weeks ago | Simply Wall St
Are Rent-A-Center's (NASDAQ:RCII) Statutory Earnings A Good Reflection Of Its Earnings Potential?Valuation
Is Rent-A-Center undervalued compared to its fair value and its price relative to the market?
46.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCII ($29.89) is trading below our estimate of fair value ($56.07)
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 (10.2x) compared to the US Specialty Retail industry average (18.7x).
PE vs Market: RCII is good value based on its PE Ratio (10.2x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: RCII is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: RCII is overvalued based on its PB Ratio (3.3x) compared to the US Specialty Retail industry average (1.7x).
Next Steps
Future Growth
How is Rent-A-Center forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
9.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCII's forecast earnings growth (9% per year) is above the savings rate (2.2%).
Earnings vs Market: RCII's earnings (9% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: RCII's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCII's revenue (6.7% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: RCII's revenue (6.7% 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?
62.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCII has a large one-off gain of $70.1M impacting its June 30 2020 financial results.
Growing Profit Margin: RCII's current net profit margins (5.9%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: RCII has become profitable over the past 5 years, growing earnings by 62.5% per year.
Accelerating Growth: RCII's earnings growth over the past year (36.9%) is below its 5-year average (62.5% per year).
Earnings vs Industry: RCII earnings growth over the past year (36.9%) exceeded the Specialty Retail industry 0.8%.
Return on Equity
High ROE: RCII's Return on Equity (32.8%) 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 ($321.6M) do not cover its short term liabilities ($519.8M).
Long Term Liabilities: RCII's short term assets ($321.6M) do not cover its long term liabilities ($570.2M).
Debt to Equity History and Analysis
Debt Level: RCII's debt to equity ratio (39.2%) is considered satisfactory.
Reducing Debt: RCII's debt to equity ratio has reduced from 67.4% to 39.2% over the past 5 years.
Debt Coverage: RCII's debt is well covered by operating cash flow (149.3%).
Interest Coverage: RCII's interest payments on its debt are well covered by EBIT (7x coverage).
Balance Sheet
Next Steps
Dividend
What is Rent-A-Center current dividend yield, its reliability and sustainability?
3.88%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RCII's dividend (3.88%) is higher than the bottom 25% of dividend payers in the US market (1.72%).
High Dividend: RCII's dividend (3.88%) is low compared to the top 25% of dividend payers in the US market (4.94%).
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 (36.9%), 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 (34.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Mitch Fadel (63 yo)
2.67yrs
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 ($USD4.61M).
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 | 2.67yrs | US$8.67m | no data | |
| Executive VP & CFO | 3.75yrs | US$1.84m | 0.12% $ 1.9m | |
| Executive VP | 2.58yrs | US$1.15m | 0.0018% $ 28.6k | |
| Executive Vice President of Franchising | 8.67yrs | US$1.13m | 0.11% $ 1.7m | |
| CTO & VP of IT | no data | no data | no data | |
| Senior VP & Chief Information Officer | 1.58yrs | no data | no data | |
| Executive VP | 0.25yr | no data | no data | |
| Senior Director of Communications | no data | no data | no data | |
| Vice President of Sales – Acceptance Now | 4.67yrs | no data | no data | |
| Chief Human Resources Officer & Executive VP | 3.17yrs | no data | no data | |
| Senior VP & Asst. General Counsel | no data | no data | no data | |
| Executive Vice President of Acceptance Now | 2.83yrs | no data | no data |
2.8yrs
Average Tenure
48.5yo
Average Age
Experienced Management: RCII's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.67yrs | US$8.67m | no data | |
| Independent Chairman | no data | US$365.79k | 0.038% $ 610.9k | |
| Independent Director | 1.25yrs | US$58.75k | no data | |
| Independent Director | 15.33yrs | US$236.54k | 0.0074% $ 119.5k | |
| Independent Director | 1.25yrs | US$59.00k | no data | |
| Independent Director | 0.58yr | no data | no data | |
| Independent Director | 3.25yrs | US$244.27k | 0.025% $ 410.3k |
2.3yrs
Average Tenure
63yo
Average Age
Experienced Board: RCII's board of directors are not considered experienced ( 2.3 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$1.609b
- Shares outstanding: 53.83m
- 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 | 2020/09/27 05:58 |
| End of Day Share Price | 2020/09/25 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.