NasdaqGS:RCII

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Executive Summary

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


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

RCIIIndustryMarket
7 Day5.4%-1.3%-0.8%
30 Day-6.1%-4.1%-5.0%
90 Day10.2%18.3%10.1%
1 Year20.3%16.4%21.3%20.0%16.4%13.8%
3 Year171.8%160.4%68.2%60.7%36.9%27.8%
5 Year36.5%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

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

NamePositionTenureCompensationOwnership
Mitchell Fadel
CEO & Director2.67yrsUS$8.67mno data
Maureen Short
Executive VP & CFO3.75yrsUS$1.84m0.12%
$ 1.9m
Ann Davids
Executive VP2.58yrsUS$1.15m0.0018%
$ 28.6k
Catherine Skula
Executive Vice President of Franchising8.67yrsUS$1.13m0.11%
$ 1.7m
Christi Liebe
CTO & VP of ITno datano datano data
Michael Santimaw
Senior VP & Chief Information Officer1.58yrsno datano data
Bryan Pechersky
Executive VP0.25yrno datano data
Sonia Holland
Senior Director of Communicationsno datano datano data
Stephen McKinley
Vice President of Sales – Acceptance Now4.67yrsno datano data
Martin Evans
Chief Human Resources Officer & Executive VP3.17yrsno datano data
Andrew Trusevich
Senior VP & Asst. General Counselno datano datano data
Christopher Crocker
Executive Vice President of Acceptance Now2.83yrsno datano 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

NamePositionTenureCompensationOwnership
Mitchell Fadel
CEO & Director2.67yrsUS$8.67mno data
Jeffrey Brown
Independent Chairmanno dataUS$365.79k0.038%
$ 610.9k
Carol McFate
Independent Director1.25yrsUS$58.75kno data
Michael Gade
Independent Director15.33yrsUS$236.54k0.0074%
$ 119.5k
Harold Lewis
Independent Director1.25yrsUS$59.00kno data
Glenn Marino
Independent Director0.58yrno datano data
Christopher Hetrick
Independent Director3.25yrsUS$244.27k0.025%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCIINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1995
RACDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1995
RCII *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 05:58
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.