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AAN

Aaron's CompanyNYSE:AAN Stock Report

Market Cap

US$942.6m

7D

8.3%

1Y

n/a

Updated

27 Sep, 2021

Data

Company Financials +
AAN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends2/6

AAN Overview

The Aarons Company Inc. provides lease-to-own and purchase solutions.

Price History & Performance

Summary of all time highs, changes and price drops for Aaron's Company
Historical stock prices
Current Share PriceUS$28.85
52 Week HighUS$16.20
52 Week LowUS$37.49
Beta0
1 Month Change4.57%
3 Month Change-12.04%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO8.87%

Recent News & Updates

Shareholder Returns

AANUS Specialty RetailUS Market
7D8.3%3.3%2.0%
1Yn/a52.5%32.8%

Return vs Industry: Insufficient data to determine how AAN performed against the US Specialty Retail industry.

Return vs Market: Insufficient data to determine how AAN performed against the US Market.

Price Volatility

Is AAN's price volatile compared to industry and market?
AAN volatility
AAN Beta0
Industry Beta1.56
Market Beta1

Stable Share Price: AAN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AAN's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19559,400Douglas Lindsayhttps://www.aarons.com

The Aarons Company Inc. provides lease-to-own and purchase solutions. The company engages in direct-to-consumer sales and lease ownership of furniture, home appliances, electronics, and accessories through its approximately 1,300 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$942.60m
Earnings (TTM)US$104.79m
Revenue (TTM)US$1.82b

9.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAN income statement (TTM)
RevenueUS$1.82b
Cost of RevenueUS$669.56m
Gross ProfitUS$1.15b
ExpensesUS$1.05b
EarningsUS$104.79m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.21
Gross Margin63.20%
Net Profit Margin5.76%
Debt/Equity Ratio0%

How did AAN perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Aaron's Company undervalued compared to its fair value and its price relative to the market?

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAN ($28.85) is trading below our estimate of fair value ($48.06)

Significantly Below Fair Value: AAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AAN is good value based on its PE Ratio (9x) compared to the US Specialty Retail industry average (10.7x).

PE vs Market: AAN is good value based on its PE Ratio (9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: AAN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AAN is good value based on its PB Ratio (1.3x) compared to the US Specialty Retail industry average (3.1x).


Future Growth

How is Aaron's Company forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAN's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: AAN's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: AAN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AAN's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: AAN's revenue is forecast to decline over the next 3 years (-1% 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


Past Performance

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

-36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAN has a large one-off loss of $95.5M impacting its June 30 2021 financial results.

Growing Profit Margin: AAN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AAN's earnings have declined by 36.1% per year over the past 5 years.

Accelerating Growth: AAN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AAN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (158.2%).


Return on Equity

High ROE: AAN's Return on Equity (14.3%) is considered low.


Financial Health

How is Aaron's Company's financial position?


Financial Position Analysis

Short Term Liabilities: AAN's short term assets ($867.5M) exceed its short term liabilities ($230.3M).

Long Term Liabilities: AAN's short term assets ($867.5M) exceed its long term liabilities ($399.7M).


Debt to Equity History and Analysis

Debt Level: AAN is debt free.

Reducing Debt: AAN had no debt 5 years ago.

Debt Coverage: AAN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AAN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

1.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAN's dividend (1.39%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: AAN's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.5%), AAN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Douglas Lindsay (50 yo)

0.83

Tenure

US$4,772,048

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 ($USD4.77M) is above average for companies of similar size in the US market ($USD2.28M).

Compensation vs Earnings: Douglas's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AAN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AAN's board of directors are not considered experienced ( 0.7 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: AAN only recently listed within the past 12 months.


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
  • Market Cap: US$942.604m
  • Shares outstanding: 32.67m
  • Website: https://www.aarons.com

Number of Employees


Location

  • The Aaron's Company, Inc.
  • 400 Galleria Parkway, S.E.
  • Suite 300
  • Atlanta
  • Georgia
  • 30339-3194
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:08
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.