Rent-A-Center
Market Cap
US$1.9b
Last Updated
2020/12/05 00:26 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
Solid track record, good value 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 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
0.3%
RCII
0.08%
US Specialty Retail
1.5%
US Market
1 Year Return
33.3%
RCII
23.0%
US Specialty Retail
22.3%
US Market
Return vs Industry: RCII exceeded the US Specialty Retail industry which returned 23.9% over the past year.
Return vs Market: RCII exceeded the US Market which returned 22.1% over the past year.
Shareholder returns
| RCII | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 0.08% | 1.5% |
| 30 Day | 14.2% | 6.7% | 8.8% |
| 90 Day | 21.0% | 10.0% | 10.8% |
| 1 Year | 39.0%33.3% | 24.2%23.0% | 25.1%22.3% |
| 3 Year | 218.7%202.5% | 74.6%67.2% | 49.5%39.6% |
| 5 Year | 157.6%131.0% | 84.4%70.5% | 105.8%83.3% |
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
5 days ago | Simply Wall St
At US$35.54, Is It Time To Put Rent-A-Center, Inc. (NASDAQ:RCII) On Your Watch List?2 weeks ago | Simply Wall St
Why We Like The Returns At Rent-A-Center (NASDAQ:RCII)3 weeks ago | Simply Wall St
Declining Stock and Solid Fundamentals: Is The Market Wrong About Rent-A-Center, Inc. (NASDAQ:RCII)?Valuation
Is Rent-A-Center undervalued compared to its fair value and its price relative to the market?
38.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCII ($35.64) is trading below our estimate of fair value ($58.24)
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 (10.1x) compared to the US Specialty Retail industry average (19.2x).
PE vs Market: RCII is good value based on its PE Ratio (10.1x) compared to the US market (19.4x).
Price to Earnings Growth Ratio
PEG Ratio: RCII is poor value based on its PEG Ratio (1.3x)
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 (2.3x).
Next Steps
Future Growth
How is Rent-A-Center forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
7.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCII's forecast earnings growth (7.8% per year) is above the savings rate (2.2%).
Earnings vs Market: RCII's earnings (7.8% per year) are forecast to grow slower than the US market (21.9% per year).
High Growth Earnings: RCII's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCII's revenue (6.5% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: RCII's revenue (6.5% 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
Next Steps
Past Performance
How has Rent-A-Center performed over the past 5 years?
74.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCII has high quality earnings.
Growing Profit Margin: RCII's current net profit margins (7%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: RCII has become profitable over the past 5 years, growing earnings by 74% per year.
Accelerating Growth: RCII's earnings growth over the past year (42.3%) is below its 5-year average (74% per year).
Earnings vs Industry: RCII earnings growth over the past year (42.3%) exceeded the Specialty Retail industry 14.3%.
Return on Equity
High ROE: RCII's Return on Equity (35.5%) 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 ($347.3M) do not cover its short term liabilities ($511.8M).
Long Term Liabilities: RCII's short term assets ($347.3M) do not cover its long term liabilities ($613.4M).
Debt to Equity History and Analysis
Debt Level: RCII's debt to equity ratio (35.1%) is considered satisfactory.
Reducing Debt: RCII's debt to equity ratio has reduced from 66.3% to 35.1% over the past 5 years.
Debt Coverage: RCII's debt is well covered by operating cash flow (148.7%).
Interest Coverage: RCII's interest payments on its debt are well covered by EBIT (16.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Rent-A-Center current dividend yield, its reliability and sustainability?
3.25%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCII's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.49%).
High Dividend: RCII's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (4.1%).
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 (31.6%), 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 (32.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Mitch Fadel (63 yo)
2.92yrs
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 ($USD4.20M).
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 | 2.92yrs | US$8.67m | no data | |
| Executive VP & CFO | 4yrs | US$1.84m | 0.12% $ 2.2m | |
| Executive VP | 2.83yrs | US$1.15m | 0.0018% $ 34.2k | |
| Executive Vice President of Franchising | 8.92yrs | US$1.13m | 0.11% $ 2.0m | |
| CTO & VP of IT | no data | no data | no data | |
| Senior VP & Chief Information Officer | 1.83yrs | no data | no data | |
| Executive VP | 0.50yr | no data | no data | |
| Senior Director of Communications | no data | no data | no data | |
| Vice President of Sales – Acceptance Now | 4.92yrs | no data | no data | |
| Chief Human Resources Officer & Executive VP | 3.42yrs | no data | no data | |
| Senior VP & Asst. General Counsel | no data | no data | no data | |
| Executive Vice President of Acceptance Now | 3.08yrs | no data | no data |
3.1yrs
Average Tenure
48.5yo
Average Age
Experienced Management: RCII's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.92yrs | US$8.67m | no data | |
| Independent Chairman | no data | US$365.79k | 0.038% $ 735.0k | |
| Independent Director | 1.5yrs | US$58.75k | no data | |
| Independent Director | 15.58yrs | US$236.54k | 0.0074% $ 142.5k | |
| Independent Director | 1.5yrs | US$59.00k | no data | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Director | 3.5yrs | US$244.27k | 0.025% $ 489.2k |
2.5yrs
Average Tenure
63yo
Average Age
Experienced Board: RCII's board of directors are not considered experienced ( 2.5 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 bought more shares than they have sold 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$1.931b
- Shares outstanding: 54.17m
- 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 | 2020/12/05 00:26 |
| End of Day Share Price | 2020/12/04 00:00 |
| Earnings | 2020/09/30 |
| 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.