NYSE:AAN

Stock Analysis Report

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Executive Summary

The Aarons Company Inc. provides lease-purchase solutions. More Details

Rewards

Earnings are forecast to grow 54.27% per year

Risk Analysis

No risks detected for AAN from our risk checks.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

How has Aaron's Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: Insufficient data to determine AAN's volatility change over the past year.


Market Performance


7 Day Return

6.3%

AAN

2.0%

US Specialty Retail

-1.0%

US Market


1 Year Return

n/a

AAN

33.6%

US Specialty Retail

19.6%

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.


Shareholder returns

AANIndustryMarket
7 Day6.3%2.0%-1.0%
30 Day14.5%6.4%2.2%
90 Dayn/a13.0%11.5%
1 Yearn/a34.9%33.6%22.3%19.6%
3 Yearn/a73.9%66.6%45.3%35.7%
5 Yearn/a115.6%99.5%124.8%99.8%

Long-Term Price Volatility Vs. Market

How volatile is Aaron's Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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


Share Price vs. Fair Value

Below Fair Value: AAN ($21.47) is trading above our estimate of fair value ($16.86)

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


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate AAN's PE Ratio to determine if it is good value compared to the US Specialty Retail industry average.

PE vs Market: Insufficient data to calculate AAN's PE Ratio to determine if it is good value compared to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Insufficient data to calculate AAN's PB Ratio to determine if it is good value.


Next Steps

Future Growth

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

54.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AAN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AAN's is expected to become profitable in the next 3 years.

Revenue vs Market: AAN's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: AAN's revenue is forecast to decline over the next 3 years (-2.3% 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


Next Steps

Past Performance

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

-74.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAN is currently unprofitable.

Growing Profit Margin: AAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAN is unprofitable, and losses have increased over the past 5 years at a rate of 74.6% per year.

Accelerating Growth: Unable to compare AAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AAN is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (15.3%).


Return on Equity

High ROE: AAN has a negative Return on Equity (-34.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aaron's Company's financial position?


Financial Position Analysis

Short Term Liabilities: AAN's short term assets ($1.2B) exceed its short term liabilities ($253.0M).

Long Term Liabilities: AAN's short term assets ($1.2B) exceed its long term liabilities ($697.8M).


Debt to Equity History and Analysis

Debt Level: AAN's debt to equity ratio (24.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AAN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AAN's debt is well covered by operating cash flow (199.2%).

Interest Coverage: AAN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.95%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.2yrs

Average management tenure


CEO

Douglas Lindsay (49 yo)

0.17

Tenure

US$2,509,926

Compensation

Mr. Douglas A. Lindsay is Chief Executive Officer and Director at The Aaron's Company, Inc. since November 30, 2020. Mr. Lindsay serves as Chief Executive Officer at PROG Holdings, Inc. He served as Presid...


CEO Compensation Analysis

Compensation vs Market: Douglas's total compensation ($USD2.51M) is about average for companies of similar size in the US market ($USD2.42M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Lindsay
CEO & Director0.17yrUS$2.51m0.49%
$ 3.6m
Stephen Olsen
President0.17yrUS$936.74k0.17%
$ 1.2m
C. Wall
Chief Financial Officer0.17yrUS$635.93k0.078%
$ 562.6k
Robert Sinclair
Corporate Controller & Chief Accounting Officer0.17yrno data0.047%
$ 341.9k
Michael Dickerson
Vice President of Corporate Communications & Investor Relationsno datano datano data
Rachel George
Executive VP0.17yrno datano data

0.2yrs

Average Tenure

48.5yo

Average Age

Experienced Management: AAN's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Lindsay
CEO & Director0.17yrUS$2.51m0.49%
$ 3.6m
Kelly Barrett
Independent Director0.17yrno data0.010%
$ 75.4k
Hubert Harris
Independent Director0.17yrno data0.037%
$ 270.1k
John Robinson
Chairman of the Board0.17yrno data1.2%
$ 8.7m
Walter Ehmer
Independent Director0.17yrno data0.022%
$ 158.0k

0.2yrs

Average Tenure

54yo

Average Age

Experienced Board: AAN's board of directors are not considered experienced ( 0.2 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.


Ownership Breakdown

Dilution of Shares: AAN only recently listed within the past 12 months.


Top Shareholders

Company Information

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


Key Information

  • Name: The Aaron's Company, Inc.
  • Ticker: AAN
  • Exchange: NYSE
  • Founded:
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$725.225m
  • Shares outstanding: 33.78m
  • Website: https://www.aarons.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AANNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2020

Biography

The Aarons Company Inc. provides lease-purchase solutions. It engages in direct-to-consumer sales and lease ownership of furniture, home appliances, consumer electronics, and accessories through its approx...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 00:15
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.