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Aaron's

NYSE:AAN
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AAN
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions to underserved and credit-challenged customers. The last earnings update was 54 days ago. More info.


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AAN Share Price and Events
7 Day Returns
2.5%
NYSE:AAN
2.4%
US Specialty Retail
0.1%
US Market
1 Year Returns
34.5%
NYSE:AAN
1%
US Specialty Retail
1.2%
US Market
AAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aaron's (AAN) 2.5% 11.2% 19% 34.5% 172.1% 72.3%
US Specialty Retail 2.4% -1.9% 0.8% 1% 27.8% 43.4%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • AAN outperformed the Specialty Retail industry which returned 1% over the past year.
  • AAN outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
AAN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Aaron's undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aaron's to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aaron's.

NYSE:AAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (19.9%))
1
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1 * 5.96%)
8.69%

Discounted Cash Flow Calculation for NYSE:AAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aaron's is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AAN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.69%)
2019 700.00 Analyst x1 644.04
2020 225.00 Analyst x1 190.46
2021 283.00 Analyst x1 220.41
2022 285.00 Analyst x1 204.22
2023 303.00 Analyst x1 199.76
2024 318.48 Est @ 5.11% 193.17
2025 332.47 Est @ 4.39% 185.54
2026 345.42 Est @ 3.9% 177.35
2027 357.67 Est @ 3.55% 168.96
2028 369.47 Est @ 3.3% 160.58
Present value of next 10 years cash flows $2,344.49
NYSE:AAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $369.47 × (1 + 2.73%) ÷ (8.69% – 2.73%)
$6,368.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,368.84 ÷ (1 + 8.69%)10
$2,768.08
NYSE:AAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,344.49 + $2,768.08
$5,112.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,112.57 / 67.68
$75.54
NYSE:AAN Discount to Share Price
Calculation Result
Value per share (USD) From above. $75.54
Current discount Discount to share price of $60.51
= -1 x ($60.51 - $75.54) / $75.54
19.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aaron's is available for.
Intrinsic value
20%
Share price is $60.51 vs Future cash flow value of $75.54
Current Discount Checks
For Aaron's to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Aaron's's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Aaron's's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aaron's's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aaron's's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.92
NYSE:AAN Share Price ** NYSE (2019-06-18) in USD $60.51
United States of America Specialty Retail Industry PE Ratio Median Figure of 63 Publicly-Listed Specialty Retail Companies 14.34x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aaron's.

NYSE:AAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AAN Share Price ÷ EPS (both in USD)

= 60.51 ÷ 2.92

20.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aaron's is overvalued based on earnings compared to the US Specialty Retail industry average.
  • Aaron's is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Aaron's's expected growth come at a high price?
Raw Data
NYSE:AAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
12.7%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 55 Publicly-Listed Specialty Retail Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:AAN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.7x ÷ 12.7%

1.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aaron's is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Aaron's's assets?
Raw Data
NYSE:AAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.80
NYSE:AAN Share Price * NYSE (2019-06-18) in USD $60.51
United States of America Specialty Retail Industry PB Ratio Median Figure of 101 Publicly-Listed Specialty Retail Companies 1.34x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:AAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AAN Share Price ÷ Book Value per Share (both in USD)

= 60.51 ÷ 26.80

2.26x

* Primary Listing of Aaron's.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aaron's is overvalued based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess Aaron's's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Aaron's has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aaron's expected to grow at an attractive rate?
  • Aaron's's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Aaron's's earnings growth is positive but not above the United States of America market average.
  • Aaron's's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AAN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 12.7%
NYSE:AAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 3.8%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AAN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,516 411 358 1
2022-12-31 4,393 393 339 1
2021-12-31 4,443 391 331 2
2020-12-31 4,338 333 284 8
2019-12-31 3,982 819 228 9
NYSE:AAN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,886 325 200
2018-12-31 3,829 356 196
2018-09-30 3,720 342 312
2018-06-30 3,606 310 294
2018-03-31 3,494 252 291
2017-12-31 3,384 159 293
2017-09-30 3,294 186 137
2017-06-30 3,224 257 141
2017-03-31 3,198 376 143
2016-12-31 3,208 467 139
2016-09-30 3,234 415 139
2016-06-30 3,233 273 134

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aaron's's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
  • Aaron's's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Aaron's Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AAN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.57 5.57 5.57 1.00
2022-12-31 5.14 5.14 5.14 1.00
2021-12-31 5.02 5.14 4.89 2.00
2020-12-31 4.18 4.48 3.99 5.00
2019-12-31 3.36 3.64 3.28 6.00
NYSE:AAN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.92
2018-12-31 2.84
2018-09-30 4.47
2018-06-30 4.18
2018-03-31 4.13
2017-12-31 4.13
2017-09-30 1.92
2017-06-30 1.97
2017-03-31 1.98
2016-12-31 1.93
2016-09-30 1.92
2016-06-30 1.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aaron's is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aaron's's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aaron's has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aaron's's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aaron's has delivered over 20% year on year earnings growth in the past 5 years.
  • Aaron's's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Aaron's's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.
Earnings and Revenue History
Aaron's's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aaron's Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AAN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,886.22 200.04 1,410.67
2018-12-31 3,828.92 196.21 1,424.81
2018-09-30 3,720.37 312.03 1,378.93
2018-06-30 3,606.18 293.65 1,342.04
2018-03-31 3,493.96 291.48 1,298.05
2017-12-31 3,383.71 292.54 1,251.73
2017-09-30 3,294.04 136.61 1,229.25
2017-06-30 3,224.13 140.73 1,196.12
2017-03-31 3,197.84 142.90 1,201.20
2016-12-31 3,207.72 139.28 1,217.68
2016-09-30 3,233.96 139.38 1,228.67
2016-06-30 3,232.67 134.11 1,239.97
2016-03-31 3,212.37 136.15 1,232.84
2015-12-31 3,179.76 135.71 1,216.95
2015-09-30 3,107.26 136.08 1,198.19
2015-06-30 3,037.98 121.18 1,187.10
2015-03-31 2,931.42 89.14 1,193.98
2014-12-31 2,695.03 78.23 1,145.52
2014-09-30 2,500.18 78.81 1,095.17
2014-06-30 2,338.99 90.66 1,041.84
2014-03-31 2,227.04 108.01 978.03
2013-12-31 2,234.63 120.67 964.70
2013-09-30 2,239.48 134.62 945.38
2013-06-30 2,231.48 142.43 924.57
2013-03-31 2,219.84 152.82 910.63
2012-12-31 2,212.83 173.04 897.72
2012-09-30 2,176.52 166.95 878.49
2012-06-30 2,129.82 166.05 862.55

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aaron's has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aaron's used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • Aaron's has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Aaron's's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aaron's has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aaron's's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aaron's's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aaron's is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aaron's's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Aaron's's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aaron's Company Filings, last reported 2 months ago.

NYSE:AAN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,813.51 814.85 124.15
2018-12-31 1,760.71 424.75 15.28
2018-09-30 1,763.51 297.34 34.99
2018-06-30 1,744.81 272.94 94.32
2018-03-31 1,756.19 358.52 189.41
2017-12-31 1,728.00 368.80 51.04
2017-09-30 1,573.96 372.69 126.25
2017-06-30 1,542.07 401.11 260.34
2017-03-31 1,500.19 484.72 348.49
2016-12-31 1,481.60 497.83 308.56
2016-09-30 1,457.10 496.17 319.49
2016-06-30 1,459.65 493.51 242.24
2016-03-31 1,417.92 518.04 118.91
2015-12-31 1,366.62 606.75 14.94
2015-09-30 1,343.36 494.16 66.91
2015-06-30 1,317.09 494.86 91.14
2015-03-31 1,274.80 520.67 129.84
2014-12-31 1,223.52 606.08 3.55
2014-09-30 1,201.25 557.24 32.11
2014-06-30 1,188.79 612.66 89.32
2014-03-31 1,179.02 142.05 358.14
2013-12-31 1,139.96 142.70 231.09
2013-09-30 1,240.41 141.10 337.06
2013-06-30 1,215.53 141.35 254.46
2013-03-31 1,188.88 141.51 257.08
2012-12-31 1,136.13 141.53 129.53
2012-09-30 1,092.43 141.61 155.64
2012-06-30 1,079.86 153.71 109.61
  • Aaron's's level of debt (22.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (12.5% vs 22.5% today).
  • Debt is well covered by operating cash flow (79.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.4x coverage).
X
Financial health checks
We assess Aaron's's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aaron's has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.23%
Current annual income from Aaron's dividends. Estimated to be 0.44% next year.
If you bought $2,000 of Aaron's shares you are expected to receive $5 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aaron's's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Aaron's's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AAN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.60 1.00
2022-12-31 0.50 1.00
2021-12-31 0.34 1.00
2020-12-31 0.17 3.00
2019-12-31 0.15 3.00
NYSE:AAN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 0.140 0.250
2019-02-21 0.140 0.261
2018-11-07 0.140 0.299
2018-08-10 0.120 0.239
2018-05-14 0.120 0.276
2018-03-06 0.120 0.266
2017-11-08 0.120 0.302
2017-08-15 0.110 0.265
2017-05-17 0.110 0.278
2017-02-27 0.110 0.358
2016-11-02 0.110 0.367
2016-08-10 0.100 0.408
2016-05-09 0.100 0.425
2016-02-29 0.100 0.398
2015-11-09 0.100 0.441
2015-08-07 0.092 0.256
2015-05-07 0.092 0.257
2015-02-25 0.092 0.312
2014-11-05 0.092 0.313
2014-08-06 0.084 0.337
2014-05-08 0.084 0.261
2014-02-19 0.084 0.276
2013-11-07 0.084 0.294
2013-08-07 0.068 0.244
2013-05-08 0.068 0.239
2013-02-20 0.068 0.241
2012-11-07 0.068 0.234
2012-05-02 0.060 0.213
2012-02-22 0.060 0.229
2011-11-01 0.060 0.227
2011-08-03 0.052 0.202
2011-05-04 0.052 0.192
2011-02-28 0.052 0.208
2011-02-25 0.052 0.219
2011-02-16 0.052 0.220
2010-08-04 0.048 0.264
2010-05-05 0.048 0.316
2010-02-25 0.048 0.268
2009-11-04 0.048 0.323
2009-10-22 0.045 0.336
2009-08-06 0.045 0.316

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aaron's is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Aaron's is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Aaron's's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Aaron's's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Aaron's's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Aaron's's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aaron's afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aaron's has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Aaron's's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Robinson
COMPENSATION $7,152,038
AGE 46
TENURE AS CEO 4.6 years
CEO Bio

Mr. John W. Robinson, III, has been the Chief Executive Officer of Aaron's, Inc. since November 10, 2014 and has been its President since February 2016. Mr. Robinson served as an Executive Vice President of Aaron's, Inc. from April 2014 to November 10, 2014. He served as the Chief Executive Officer of Progressive Leasing Holdings, LLC until November 10, 2014. Mr. Robinson served as the Chief Executive Officer and President of Progressive Finance Holdings LLC. He served as President and Manager at TMX Finance LLC from January 2008 to December 2011 and since June 2010 respectively. He joined TMX Finance as Chief Operating Officer in 2004 and was appointed President in 2008. He has been Director of Aaron's, Inc. since November 10, 2014. Prior to working at TMX Finance, he worked in the investment banking groups at Morgan Stanley, Lehman Brothers and Wheat First Butcher Singer.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Aaron's management team in years:

3.3
Average Tenure
46
Average Age
  • The tenure for the Aaron's management team is about average.
Management Team

John Robinson

TITLE
President
COMPENSATION
$7M
AGE
46
TENURE
4.6 yrs

Steve Michaels

TITLE
CFO & President of Strategic Operations
COMPENSATION
$3M
AGE
46
TENURE
3.3 yrs

Ryan Woodley

TITLE
Chief Executive Officer of Progressive Finance Holdings LLC
COMPENSATION
$4M
AGE
41
TENURE
4.4 yrs

Curt Doman

TITLE
Chief Product Officer of Progressive & Director
COMPENSATION
$2M
AGE
45
TENURE
0.8 yrs

Douglas Lindsay

TITLE
President of Aaron’s Business
COMPENSATION
$3M
AGE
47
TENURE
3.3 yrs

Charlie Loudermilk

TITLE
Founder and Chairman Emeritus
COMPENSATION
$3M
AGE
91
TENURE
64.4 yrs

John Trainor

TITLE
Chief Information Officer & Senior VP of Omni-Channel
AGE
46
TENURE
8.6 yrs

Robbie Kamerschen

TITLE
Executive VP
COMPENSATION
$1M
AGE
50
TENURE
3.3 yrs

Mike Dickerson

TITLE
Vice President of Investor Relations
TENURE
0.8 yrs

David Korn

TITLE
VP & Chief Compliance Officer
AGE
52
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Aaron's board of directors in years:

4.9
Average Tenure
58
Average Age
  • The tenure for the Aaron's board of directors is about average.
Board of Directors

Ray Robinson

TITLE
Chairman of the Board
COMPENSATION
$300K
AGE
70
TENURE
5.2 yrs

John Robinson

TITLE
President
COMPENSATION
$7M
AGE
46
TENURE
4.6 yrs

Curt Doman

TITLE
Chief Product Officer of Progressive & Director
COMPENSATION
$2M
AGE
45
TENURE
3.8 yrs

Charlie Loudermilk

TITLE
Founder and Chairman Emeritus
COMPENSATION
$3M
AGE
91
TENURE
6.8 yrs

Cynthia Day

TITLE
Independent Director
COMPENSATION
$220K
AGE
52
TENURE
7.7 yrs

Kathy Betty

TITLE
Independent Director
COMPENSATION
$205K
AGE
62
TENURE
6.8 yrs

Doug Curling

TITLE
Independent Director
COMPENSATION
$215K
AGE
64
TENURE
3.4 yrs

Hubert Harris

TITLE
COMPENSATION
$205K
AGE
74
TENURE
6.8 yrs

Walter Ehmer

TITLE
Independent Director
COMPENSATION
$200K
AGE
52
TENURE
3.1 yrs

Kelly Barrett

TITLE
Director
AGE
54
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Aaron's's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aaron's has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Don't Sell Aaron's, Inc. (NYSE:AAN) Before You Read This

We'll look at Aaron's, Inc.'s (NYSE:AAN) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Aaron's: P/E of 20.73 = $60.59 ÷ $2.92 (Based on the year to March 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings.

Simply Wall St -

Are Investors Undervaluing Aaron's, Inc. (NYSE:AAN) By 27%?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $700.00 $225.00 $283.00 $285.00 $303.00 $318.48 $332.47 $345.42 $357.67 $369.47 Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 5.11% Est @ 4.39% Est @ 3.9% Est @ 3.55% Est @ 3.3% Present Value ($, Millions) Discounted @ 8.94% $642.56 $189.59 $218.90 $202.36 $197.49 $190.54 $182.59 $174.14 $165.52 $156.95 Present Value of 10-year Cash Flow (PVCF)= $2.32b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$369m × (1 + 2.7%) ÷ (8.9% – 2.7%) = US$6.1b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$6.1b ÷ ( 1 + 8.9%)10 = $2.60b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $4.92b. … NYSE:AAN Intrinsic value, May 24th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Aaron's, Inc. (NYSE:AAN) Is Employing Capital Very Effectively

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Aaron's: 0.17 = US$509m ÷ (US$3.2b - US$247m) (Based on the trailing twelve months to March 2019.) So, Aaron's has an ROCE of 17%. … Aaron's's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … In addition to low current liabilities (making a negligible impact on ROCE), Aaron's earns a sound return on capital employed.

Simply Wall St -

Is Aaron's, Inc.'s (NYSE:AAN) Balance Sheet Strong Enough To Weather A Storm?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Aaron's, Inc. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Is Aaron's, Inc.'s (NYSE:AAN) CEO Pay Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does John Robinson's Compensation Compare With Similar Sized Companies. … has a market cap of US$3.6b, and is paying total annual CEO compensation of US$7.0m.

Simply Wall St -

What Are Analysts Saying About The Future Of Aaron's, Inc.'s (NYSE:AAN)?

Based on Aaron's, Inc.'s (NYSE:AAN) earnings update in December 2018,. … it seems that analyst expectations are fairly bearish, … the higher past 5-year average growth rate of 24%

Simply Wall St -

Are Insiders Selling Aaron's, Inc. (NYSE:AAN) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Aaron's, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … All up, insiders sold more shares in Aaron's than they bought, over the last year

Simply Wall St -

Is Aaron's's Share Price Gain Of 138% Well Earned?

(NYSE:AAN) share price has flown 138% in the last three years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Aaron's achieved compound earnings per share growth of 15% per year.

Simply Wall St -

Is Aaron's, Inc. (NYSE:AAN) A High Quality Stock To Own?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Aaron's has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do You Like Aaron's, Inc. (NYSE:AAN) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions to underserved and credit-challenged customers. It operates in three segments: Progressive Leasing, Aaron’s Business, and DAMI. The company also engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. As of December 31, 2018, it operated through 1,689 Aaron's stores, including 1,312 company-operated stores in 42 states and Canada; and 377 independently-owned franchised stores in 37 states, Canada, and Puerto Rico, as well as its e-commerce platform, aarons.com. The company was founded in 1955 and is headquartered in Atlanta, Georgia.

Details
Name: Aaron's, Inc.
AAN
Exchange: NYSE
Founded: 1955
$4,095,162,438
67,677,449
Website: http://www.aarons.com
Address: Aaron's, Inc.
400 Galleria Parkway SE,
Suite 300,
Atlanta,
Georgia, 30339,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AAN Common Stock New York Stock Exchange US USD 04. Nov 1982
DB AZDA Common Stock Deutsche Boerse AG DE EUR 04. Nov 1982
Number of employees
Current staff
Staff numbers
11,800
Aaron's employees.
Industry
Homefurnishing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:30
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.