Rent-A-Center
Market Cap
US$1.4b
Last Updated
2019/10/19 23:41 UTC
Data Sources
Company Financials +
Executive Summary
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis.
Snowflake
Fundamentals
Good value with proven track record.
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
Market Performance
7 Day Return
-0.6%
RCII
1.5%
US Specialty Retail
0.4%
US Market
1 Year Return
84.9%
RCII
8.0%
US Specialty Retail
6.9%
US Market
Return vs Industry: RCII exceeded the US Specialty Retail industry which returned 8% over the past year.
Return vs Market: RCII exceeded the US Market which returned 6.9% over the past year.
Shareholder returns
| RCII | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 1.5% | 0.4% |
| 30 Day | 1.6% | 3.5% | -1.1% |
| 90 Day | 1.2% | 4.5% | -0.5% |
| 1 Year | 86.7%84.9% | 9.8%8.0% | 9.3%6.9% |
| 3 Year | 186.7%177.6% | 42.6%35.3% | 45.8%36.4% |
| 5 Year | -0.5%-10.0% | 57.5%43.6% | 62.9%45.1% |
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
9 months ago | Simply Wall St
Does Rent-A-Center, Inc. (NASDAQ:RCII) Create Value For Shareholders?11 months ago | Simply Wall St
What Should You Know About Rent-A-Center Inc's (NASDAQ:RCII) Capital Returns?1 year ago | Simply Wall St
With An ROE Of 6.01%, Has Rent-A-Center Inc's (NASDAQ:RCII) Management Done Well?Valuation
Is Rent-A-Center undervalued compared to its fair value and its price relative to the market?
42.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: RCII ($26.37) is trading below our estimate of fair value ($45.8)
Significantly Undervalued: 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 (12.2x) compared to the Specialty Retail industry average (15.4x).
PE vs Market: RCII is good value based on its PE Ratio (12.2x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
Low PEG Ratio: RCII is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: RCII is overvalued based on its PB Ratio (3.6x) compared to the US Specialty Retail industry average (1.4x).
Next Steps
Future Growth
How is Rent-A-Center forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCII's forecast earnings growth (5.4% per year) is above the savings rate (2.7%).
Earnings vs Market: RCII's earnings (5.4% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: RCII's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCII's revenue (3.3% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: RCII's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: RCII's Return on Equity is forecast to be high in 3 years time (26%)
Next Steps
Past Performance
How has Rent-A-Center performed over the past 5 years?
13.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: RCII's earnings have grown by 13.7% per year over the past 5 years.
Accelerating Growth: RCII's earnings growth over the past year (621.2%) exceeds its 5-year average (13.7% per year).
Earnings vs Industry: RCII earnings growth over the past year (621.2%) exceeded the Specialty Retail industry 8.3%.
Return on Equity
High ROE: Whilst RCII's Return on Equity (29.69%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: RCII has a higher Return on Assets than the Specialty Retail industry average last year.
Return on Capital Employed
ROCE Improving: RCII's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Rent-A-Center's financial position?
Financial Position Analysis
Short Term Liabilities: RCII's short term assets ($458.9M) exceeds its short term liabilities ($410.1M)
Long Term Liabilities: RCII's short term assets (458.9M) do not cover its long term liabilities (942.3M)
Debt to Equity History and Analysis
Debt Level: RCII's debt to equity ratio (138%) is considered high
Reducing Debt: RCII's debt to equity ratio has increased from 68.8% to 138% over the past 5 years.
Debt Coverage: RCII's debt is well covered by operating cash flow (49.9%).
Interest Coverage: RCII's interest payments on its debt are well covered by EBIT (4.1x coverage).
Balance Sheet
Inventory Level: RCII has a high level of physical assets or inventory.
Debt Coverage by Assets: RCII's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Rent-A-Center's current dividend yield, its reliability and sustainability?
3.79%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: RCII's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: RCII's dividend (3.79%) is in the top 25% of dividend payers in the US market (3.73%)
Stable Dividend: RCII has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RCII's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: Unable to calculate sustainability of dividends as RCII has not reported any payouts.
Future Payout to Shareholders
Future Dividend Coverage: RCII's dividends in 3 years are forecast to be well covered by earnings (49% payout ratio).
Next Steps
Management
What is the CEO of Rent-A-Center's salary, the management and board of directors tenure and is there insider trading?
2.0yrs
Average management tenure
CEO
Mitch Fadel (62yo)
1.8yrs
Tenure
US$4,862,010
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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Mitch's compensation has increased by more than 20% in the past year.
Management Age and Tenure
2.0yrs
Average Tenure
48yo
Average Age
Experienced Management: RCII's management team is considered experienced (2 years average tenure).
Board Age and Tenure
2.3yrs
Average Tenure
60.5yo
Average Age
Experienced Board: RCII's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 2,679,992 |
| Max Price | US$21.47 |
| Entity | Company |
| Shares | 800,000 |
| Max Price | US$16.18 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Franchising |
| Shares | 9,014 |
| Max Price | US$15.06 |
Ownership Breakdown
Management Team
Mitch Fadel (62yo)
CEO & Director
- Tenure: 1.8yrs
- Compensation: US$4.86m
Cathy Skula (47yo)
Executive Vice President of Franchising
- Tenure: 7.8yrs
- Compensation: US$1.06m
Ann Davids (49yo)
Executive VP
- Tenure: 1.7yrs
Dawn Wolverton
VP, Interim General Counsel & Secretary
- Tenure: 0.3yrs
Stephen McKinley
Vice President of Sales – Acceptance Now
- Tenure: 3.8yrs
Maureen Short (44yo)
Executive VP & CFO
- Tenure: 2.8yrs
- Compensation: US$1.04m
Christi Liebe
CTO & VP of IT
- Tenure: 0yrs
Martin Evans
Chief Human Resources Officer & Executive VP
- Tenure: 2.3yrs
Sonia Holland
Senior Director of Communications
- Tenure: 0yrs
Mike Santimaw
Senior VP & Chief Information Officer
- Tenure: 0.7yrs
Board Members
Mitch Fadel (62yo)
CEO & Director
- Tenure: 1.8yrs
- Compensation: US$4.86m
Jeff Brown (59yo)
Independent Chairman
- Tenure: 0yrs
- Compensation: US$242.83k
Carol McFate (66yo)
Independent Director
- Tenure: 0.3yrs
Mike Gade (68yo)
Independent Director
- Tenure: 14.4yrs
- Compensation: US$178.50k
Harold Lewis (58yo)
Independent Director
- Tenure: 0.3yrs
Christopher Hetrick (40yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$237.33k
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$1.431b
- Shares outstanding: 54.27m
- 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 |
Biography
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates through four segments: Core U.S., Acceptance Now, Mexico, and F ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 23:41 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.