The Aarons Company Inc. provides lease-to-own and purchase solutions.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$27.52|
|52 Week High||US$16.20|
|52 Week Low||US$37.49|
|1 Month Change||-0.25%|
|3 Month Change||-19.04%|
|1 Year Change||n/a|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||3.85%|
Recent News & Updates
|AAN||US Specialty Retail||US Market|
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.
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
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
|AAN fundamental statistics|
Is AAN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AAN income statement (TTM)|
|Cost of Revenue||US$669.56m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.21|
|Net Profit Margin||5.76%|
How did AAN perform over the long term?See historical performance and comparison
1.5%Current Dividend Yield
Is Aaron's Company undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAN ($27.52) is trading below our estimate of fair value ($47.76)
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 (8.6x) compared to the US Specialty Retail industry average (10.3x).
PE vs Market: AAN is good value based on its PE Ratio (8.6x) compared to the US market (17.9x).
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 (1.2x) compared to the US Specialty Retail industry average (3x).
How is Aaron's Company forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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
How has Aaron's Company performed over the past 5 years?
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.
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 ($399.7M).
Debt to Equity History and Analysis
Debt Level: AAN is debt free.
Reducing Debt: AAN had no debt 5 years ago.
Debt Coverage: AAN has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: AAN has no debt, therefore coverage of interest payments is not a concern.
What is Aaron's Company current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAN's dividend (1.45%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: AAN's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether AAN's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if AAN's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (6.5%), AAN's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Douglas Lindsay (50 yo)
Mr. Douglas A. Lindsay is Chief Executive Officer and Director at The Aaron's Company, Inc. since December 1, 2020. Mr. Lindsay served as Chief Executive Officer at PROG Holdings, Inc until November 30, 20...
CEO Compensation Analysis
Compensation vs Market: Douglas's total compensation ($USD4.77M) is above average for companies of similar size in the US market ($USD2.30M).
Compensation vs Earnings: Douglas's compensation has been consistent with company performance over the past year.
Experienced Management: AAN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Experienced Board: AAN's board of directors are not considered experienced ( 0.7 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: AAN only recently listed within the past 12 months.
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
- Market Cap: US$899.149m
- Shares outstanding: 32.67m
- Website: https://www.aarons.com
Number of Employees
- The Aaron's Company, Inc.
- 400 Galleria Parkway, S.E.
- Suite 300
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/26 22:01|
|End of Day Share Price||2021/09/24 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.