AAN Stock Overview
The Aaron's Company, Inc. provides lease-to-own and purchase solutions.
Aaron's Company Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$13.32|
|52 Week High||US$31.69|
|52 Week Low||US$11.98|
|1 Month Change||-13.11%|
|3 Month Change||-33.70%|
|1 Year Change||-51.83%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-49.74%|
Recent News & Updates
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.
|AAN||US Specialty Retail||US Market|
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.
|AAN Average Weekly Movement||8.2%|
|Specialty Retail Industry Average Movement||8.8%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.2%|
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
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
|AAN fundamental statistics|
Is AAN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AAN income statement (TTM)|
|Cost of Revenue||US$800.56m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.85|
|Net Profit Margin||2.89%|
How did AAN perform over the long term?See historical performance and comparison
3.4%Current Dividend Yield
Is AAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is AAN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does AAN's PE Ratio compare to its peers?
|AAN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
HVT Haverty Furniture Companies
SNBR Sleep Number
AAN Aaron's Company
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.
|Current PE Ratio||7.2x|
|Fair PE Ratio||13.7x|
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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How is Aaron's Company forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Aaron's Company performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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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How is Aaron's Company's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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 ($974.7M).
Debt to Equity History and Analysis
Debt Level: AAN's net debt to equity ratio (39.2%) is considered satisfactory.
Reducing Debt: AAN's debt to equity ratio has increased from 27% to 43.1% over the past 5 years.
Debt Coverage: AAN's debt is well covered by operating cash flow (42.8%).
Interest Coverage: AAN's interest payments on its debt are well covered by EBIT (60.6x coverage).
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What is Aaron's Company current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAN's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: AAN's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (4.09%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether AAN's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if AAN's dividend payments are increasing as they only just started paying a dividend.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (23.5%), AAN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (48.8%), AAN's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Douglas Lindsay (51 yo)
Mr. Douglas A. Lindsay is Chief Executive Officer and Director at The Aaron's Company, Inc. since December 1, 2020. Mr. Lindsay served as Chief Executive Officer at PROG Holdings, Inc until November 30, 20...
CEO Compensation Analysis
Compensation vs Market: Douglas's total compensation ($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.
Experienced Management: AAN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: AAN's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Aaron's Company, Inc.'s employee growth, exchange listings and data sources
- 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
- The Aaron's Company, Inc.
- 400 Galleria Parkway SE
- Suite 300
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/07 00:00|
|End of Day Share Price||2022/08/05 00:00|
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.