Rent-A-Center
Market Cap
US$3.9b
Last Updated
2021/05/12 22:27 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
+ 1 more risk
Snowflake Analysis
Undervalued average dividend payer.
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 +/- 6% a week.
Volatility Over Time: RCII's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-7.4%
RCII
-5.1%
US Specialty Retail
-2.8%
US Market
1 Year Return
149.1%
RCII
103.4%
US Specialty Retail
49.4%
US Market
Return vs Industry: RCII exceeded the US Specialty Retail industry which returned 101.5% over the past year.
Return vs Market: RCII exceeded the US Market which returned 48.6% over the past year.
Shareholder returns
| RCII | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.4% | -5.1% | -2.8% |
| 30 Day | -3.4% | -2.7% | -2.3% |
| 90 Day | 5.7% | 6.5% | -1.3% |
| 1 Year | 161.0%149.1% | 104.8%103.4% | 51.8%49.4% |
| 3 Year | 483.7%446.2% | 90.2%82.8% | 57.5%47.6% |
| 5 Year | 410.2%360.7% | 125.5%109.4% | 121.7%97.1% |
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
6 days ago | Simply Wall St
Rent-A-Center (NASDAQ:RCII) Could Easily Take On More Debt4 weeks ago | Simply Wall St
Is Now The Time To Put Rent-A-Center (NASDAQ:RCII) On Your Watchlist?1 month ago | Simply Wall St
Is It Smart To Buy Rent-A-Center, Inc. (NASDAQ:RCII) Before It Goes Ex-Dividend?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 ($55.88) is trading below our estimate of fair value ($143.35)
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 (15.1x) compared to the US Specialty Retail industry average (17.6x).
PE vs Market: RCII is good value based on its PE Ratio (15.1x) compared to the US market (19.9x).
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 (3.2x).
Future Growth
How is Rent-A-Center forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
19.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCII's forecast earnings growth (19.8% per year) is above the savings rate (2%).
Earnings vs Market: RCII's earnings (19.8% per year) are forecast to grow faster than the US market (15.4% per year).
High Growth Earnings: RCII's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCII's revenue (12.9% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: RCII's revenue (12.9% 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?
84.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCII has a large one-off loss of $64.0M impacting its March 31 2021 financial results.
Growing Profit Margin: RCII's current net profit margins (6.4%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: RCII has become profitable over the past 5 years, growing earnings by 84.7% 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 (-6.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (48.7%).
Return on Equity
High ROE: Whilst RCII's Return on Equity (27.13%) 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 ($284.9M) do not cover its short term liabilities ($645.5M).
Long Term Liabilities: RCII's short term assets ($284.9M) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: RCII's debt to equity ratio (179.5%) is considered high.
Reducing Debt: RCII's debt to equity ratio has increased from 150.1% to 179.5% over the past 5 years.
Debt Coverage: RCII's debt is well covered by operating cash flow (24.4%).
Interest Coverage: RCII's interest payments on its debt are well covered by EBIT (14.2x coverage).
Balance Sheet
Dividend
What is Rent-A-Center current dividend yield, its reliability and sustainability?
2.22%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCII's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.25%).
High Dividend: RCII's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.43%).
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 (32%), 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 (18.9% 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)
3.33yrs
Tenure
US$9,217,950
Compensation
Mr. Mitchell E. Fadel, also known as Mitch, has been Chief Executive Officer of Rent-A-Center, Inc since January 2, 2018. Mr. Fadel served as President of U.S. Pawn at EZCORP, Inc. from August 2015 to Dece...
CEO Compensation Analysis
Compensation vs Market: Mitch's total compensation ($USD9.22M) is above average for companies of similar size in the US market ($USD5.33M).
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 (3.3 years average tenure).
Board Members
Experienced Board: RCII's board of directors are not considered experienced ( 1.9 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 been diluted in the past year, with total shares outstanding growing by 23.3%.
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: 1960
- Industry: Computer and Electronics Retail
- Sector: Retail
- Market Cap: US$3.914b
- Shares outstanding: 66.31m
- Website: https://www.rentacenter.com
Number of Employees
Location
- Rent-A-Center, Inc.
- 5501 Headquarters Drive
- Plano
- Texas
- 75024
- United States
Listings
Biography
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, Mex...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/12 22:27 |
| End of Day Share Price | 2021/05/12 00:00 |
| Earnings | 2021/03/31 |
| 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.