NYSE:AAN

Stock Analysis Report

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Executive Summary

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions to underserved and credit-challenged customers.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AAN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

AAN

1.8%

US Specialty Retail

1.6%

US Market


1 Year Return

-30.4%

AAN

-5.3%

US Specialty Retail

4.8%

US Market

Return vs Industry: AAN underperformed the US Specialty Retail industry which returned -5.3% over the past year.

Return vs Market: AAN underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

AANIndustryMarket
7 Day0.9%1.8%1.6%
30 Day2.5%-1.7%2.3%
90 Day140.2%44.4%29.5%
1 Year-30.1%-30.4%-4.1%-5.3%7.1%4.8%
3 Year19.4%18.2%30.5%24.2%37.1%28.1%
5 Year24.6%22.5%19.0%8.9%67.2%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAN ($44.73) is trading below our estimate of fair value ($62.6)

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


Price To Earnings Ratio

PE vs Industry: AAN is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: AAN is unprofitable, so we can't compare its PE Ratio 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: AAN is overvalued based on its PB Ratio (2.1x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Aaron's forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

56.8%

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 (2.2%).

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 (7.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: AAN's revenue (7.5% 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


Next Steps

Past Performance

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

-4.2%

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 -4.2% 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 (-12.9%).


Return on Equity

High ROE: AAN has a negative Return on Equity (-21.06%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aaron's's financial position?


Financial Position Analysis

Short Term Liabilities: AAN's short term assets ($852.1M) exceed its short term liabilities ($400.8M).

Long Term Liabilities: AAN's short term assets ($852.1M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: AAN's debt to equity ratio (37.1%) is considered satisfactory.

Reducing Debt: AAN's debt to equity ratio has reduced from 39.9% to 37.1% over the past 5 years.

Debt Coverage: AAN's debt is well covered by operating cash flow (70.9%).

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


Balance Sheet


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAN's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: AAN's dividend (0.36%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

Stable Dividend: AAN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AAN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AAN is not paying a notable dividend for the US market.


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?

3.9yrs

Average management tenure


CEO

John Robinson (48yo)

5.67yrs

Tenure

US$6,981,190

Compensation

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 o ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.98M) is about average for companies of similar size in the US market ($USD5.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Robinson
President5.67yrsUS$6.98m0.30% $9.2m
Steven Michaels
CFO & President of Strategic Operations4.42yrsUS$2.67m0.059% $1.8m
Douglas Lindsay
President of Sales & Lease Ownership0.75yrUS$2.51m0.044% $1.3m
Ryan Woodley
Chief Executive Officer of Progressive Finance Holdings LLC5.5yrsUS$3.60m0.077% $2.3m
Curtis Doman
Chief Innovation Officer of Progressive Leasing & Director4.92yrsUS$2.38m0.24% $7.3m
Robert Loudermilk
Founder & Chairman Emeritus7.83yrsUS$3.26mno data
Trevor Thatcher
Senior VP of Operations0.67yrno datano data
Cory Voglesonger
Vice President of Technology Strategy & Innovation3.33yrsno datano data
John Trainor
Chief Information Officer & Senior VP of Omni-Channel9.67yrsno datano data
Michael Dickerson
Vice President of Corporate Communications & Investor Relations1.83yrsno datano data

3.9yrs

Average Tenure

48yo

Average Age

Experienced Management: AAN's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Robinson
President5.67yrsUS$6.98m0.30% $9.2m
Curtis Doman
Chief Innovation Officer of Progressive Leasing & Director4.92yrsUS$2.38m0.24% $7.3m
Robert Loudermilk
Founder & Chairman Emeritus7.83yrsUS$3.26mno data
Kelly Barrett
Independent Director1.17yrsUS$173.42k0.0061% $185.3k
Douglas Curling
Independent Director4.5yrsUS$250.00k0.020% $617.2k
Hubert Harris
Independent Director7.92yrsUS$235.00k0.033% $996.8k
Ray Robinson
Independent Chairman of the Board6.25yrsUS$335.00k0.040% $1.2m
Cynthia Day
Independent Director8.75yrsUS$255.00k0.030% $907.3k
Kathy Betty
Independent Director7.92yrsUS$245.00k0.056% $1.7m
Walter Ehmer
Independent Director4.17yrsUS$235.00k0.018% $529.8k

6.0yrs

Average Tenure

60yo

Average Age

Experienced Board: AAN's board of directors are considered experienced (6 years average tenure).


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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Aaron's, Inc.
  • Ticker: AAN
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$3.022b
  • Shares outstanding: 67.57m
  • Website: https://www.aarons.com

Number of Employees


Location

  • Aaron's, Inc.
  • 400 Galleria Parkway SE
  • Suite 300
  • Atlanta
  • Georgia
  • 30339-3182
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AANNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1982
AZDADB (Deutsche Boerse AG)YesCommon StockDEEURNov 1982

Biography

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 Vive. The company offers its lease-purchase solutions to customers for various products in the furniture and appliance, jewelry, mobile phones and accessories, mattress, and automobile electronics and accessories industries. It also engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. In addition, the company manufactures and sells bedding, including mattresses and box springs; and upholstered living-room furniture, such as contemporary sofas, chairs, modular sofa, and ottoman collections. Further, it provides revolving loans through third-party federally insured banks to customers that may not qualify for traditional prime lending. As of December 31, 2019, the company operated through 1,502 Aaron's stores, including 1,167 company-operated stores; and 335 franchised stores in the United States, Canada, and Puerto Rico, as well as its e-commerce platform, aarons.com. Aaron's, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 00:10
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.