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AAN

Aaron's Company NYSE:AAN Stock Report

Last Price

US$13.32

Market Cap

US$410.0m

7D

2.3%

1Y

-51.8%

Updated

07 Aug, 2022

Data

Company Financials +
AAN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends3/6

AAN Stock Overview

The Aaron's Company, Inc. provides lease-to-own and purchase solutions.

Aaron's Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aaron's Company
Historical stock prices
Current Share PriceUS$13.32
52 Week HighUS$31.69
52 Week LowUS$11.98
Beta0
1 Month Change-13.11%
3 Month Change-33.70%
1 Year Change-51.83%
3 Year Changen/a
5 Year Changen/a
Change since IPO-49.74%

Recent News & Updates

Jul 25

Aaron's Q2 2022 Earnings Preview

Aaron's (NYSE:AAN) is scheduled to announce Q2 earnings results on Tuesday, July 26th, before market open. The consensus EPS estimate is $0.62 (-41.0% Y/Y) and consensus revenue estimate is $604.65M (+29.3% Y/Y). Over the last 2 years, AAN has beaten EPS estimates 100% of the time and revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 2 downward revisions. Revenue estimates have seen 6 upward revisions and 0 downward revision.

Shareholder Returns

AANUS Specialty RetailUS Market
7D2.3%3.9%1.0%
1Y-51.8%-30.9%-12.9%

Return vs Industry: AAN underperformed the US Specialty Retail industry which returned -30.9% over the past year.

Return vs Market: AAN underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is AAN's price volatile compared to industry and market?
AAN volatility
AAN Average Weekly Movement8.2%
Specialty Retail Industry Average Movement8.8%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: AAN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AAN's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19559,170Douglas Lindsayhttps://www.aarons.com

The Aaron's Company, Inc. provides lease-to-own and purchase solutions. The company engages in direct-to-consumer sales and lease ownership of furniture, appliances, electronics, computers, and accessories through company-operated and franchised stores in the United States and Canada, as well as its e-commerce platform. It also manufactures and supplies bedding and upholstered furniture.

Aaron's Company Fundamentals Summary

How do Aaron's Company's earnings and revenue compare to its market cap?
AAN fundamental statistics
Market CapUS$409.95m
Earnings (TTM)US$56.83m
Revenue (TTM)US$1.96b

7.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAN income statement (TTM)
RevenueUS$1.96b
Cost of RevenueUS$800.56m
Gross ProfitUS$1.16b
Other ExpensesUS$1.11b
EarningsUS$56.83m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.85
Gross Margin59.23%
Net Profit Margin2.89%
Debt/Equity Ratio43.1%

How did AAN perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

24%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAN?

Other financial metrics that can be useful for relative valuation.

AAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA4.2x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does AAN's PE Ratio compare to its peers?

AAN PE Ratio vs Peers
The above table shows the PE ratio for AAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.8x
HVT Haverty Furniture Companies
5.3x-16.6%US$472.8m
ARHS Arhaus
25.3x28.0%US$841.8m
SNBR Sleep Number
9.3x6.1%US$952.1m
KIRK Kirkland's
3.2x-15.1%US$39.5m
AAN Aaron's Company
7.2x26.9%US$410.0m

Price-To-Earnings vs Peers: AAN is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (10.8x).


Price to Earnings Ratio vs Industry

How does AAN's PE Ratio compare vs other companies in the US Specialty Retail Industry?

Price-To-Earnings vs Industry: AAN is expensive based on its Price-To-Earnings Ratio (7.2x) compared to the US Specialty Retail industry average (6.4x)


Price to Earnings Ratio vs Fair Ratio

What is AAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: AAN is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).


Share Price vs Fair Value

What is the Fair Price of AAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AAN ($13.32) is trading above our estimate of fair value ($7.85)

Significantly Below Fair Value: AAN is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Aaron's Company forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAN's forecast earnings growth (26.9% per year) is above the savings rate (1.9%).

Earnings vs Market: AAN's earnings (26.9% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: AAN's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AAN's revenue (5.2% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: AAN's revenue (5.2% 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 AAN's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Aaron's Company performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAN has a large one-off loss of $136.9M impacting its June 30 2022 financial results.

Growing Profit Margin: AAN's current net profit margins (2.9%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: AAN's earnings have declined by 0.5% per year over the past 5 years.

Accelerating Growth: AAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AAN had negative earnings growth (-45.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (30.3%).


Return on Equity

High ROE: AAN's Return on Equity (7.9%) is considered low.


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Financial Health

How is Aaron's Company's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAN's short term assets ($975.8M) exceed its short term liabilities ($236.6M).

Long Term Liabilities: AAN's short term assets ($975.8M) exceed its long term liabilities ($974.7M).


Debt to Equity History and Analysis

Debt Level: AAN's net debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: AAN's debt to equity ratio has increased from 27% to 43.1% over the past 5 years.

Debt Coverage: AAN's debt is well covered by operating cash flow (42.8%).

Interest Coverage: AAN's interest payments on its debt are well covered by EBIT (60.6x coverage).


Balance Sheet


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Dividend

What is Aaron's Company current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AAN's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: AAN's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AAN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AAN's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.5%), AAN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48.8%), AAN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Douglas Lindsay (51 yo)

1.75yrs

Tenure

US$5,998,425

Compensation

Mr. Douglas A. Lindsay is Chief Executive Officer and Director at The Aaron's Company, Inc. since December 1, 2020. Mr. Lindsay served as Chief Executive Officer at PROG Holdings, Inc until November 30, 20...


CEO Compensation Analysis

Compensation vs Market: Douglas's total compensation ($USD6.00M) is above average for companies of similar size in the US market ($USD2.70M).

Compensation vs Earnings: Douglas's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AAN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: AAN's board of directors are not considered experienced ( 1.7 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: Insufficient data to determine if 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

The Aaron's Company, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: The Aaron's Company, Inc.
  • Ticker: AAN
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Implied Market Cap: US$409.951m
  • Shares outstanding: 30.78m
  • Website: https://www.aarons.com

Number of Employees


Location

  • The Aaron's Company, Inc.
  • 400 Galleria Parkway SE
  • Suite 300
  • Atlanta
  • Georgia
  • 30339-3182
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.