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AARON'S CO INC/THE (AAN) Stock Fundamental Analysis

NYSE:AAN - New York Stock Exchange, Inc. - US00258W1080 - Common Stock - Currency: USD

10.09  +0.1 (+1%)

After market: 10.09 0 (0%)

Fundamental Rating

3

Overall AAN gets a fundamental rating of 3 out of 10. We evaluated AAN against 120 industry peers in the Specialty Retail industry. AAN may be in some trouble as it scores bad on both profitability and health. AAN has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

AAN had negative earnings in the past year.
In the past year AAN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AAN reported negative net income in multiple years.
In the past 5 years AAN always reported a positive cash flow from operatings.
AAN Yearly Net Income VS EBIT VS OCF VS FCFAAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

AAN has a Return On Assets (-2.40%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -6.47%, AAN is in line with its industry, outperforming 49.18% of the companies in the same industry.
Industry RankSector Rank
ROA -2.4%
ROE -6.47%
ROIC N/A
ROA(3y)2.5%
ROA(5y)-2.14%
ROE(3y)4.98%
ROE(5y)-3.82%
ROIC(3y)N/A
ROIC(5y)N/A
AAN Yearly ROA, ROE, ROICAAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

In the last couple of years the Profit Margin of AAN has declined.
AAN's Operating Margin has declined in the last couple of years.
AAN's Gross Margin of 52.53% is amongst the best of the industry. AAN outperforms 80.33% of its industry peers.
In the last couple of years the Gross Margin of AAN has declined.
The Profit Margin and Operating Margin are not available for AAN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 52.53%
OM growth 3Y-44.69%
OM growth 5Y-28.43%
PM growth 3YN/A
PM growth 5Y-45.82%
GM growth 3Y-5.74%
GM growth 5Y-2.88%
AAN Yearly Profit, Operating, Gross MarginsAAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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2

2. Health

2.1 Basic Checks

AAN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AAN has been reduced compared to 1 year ago.
AAN has less shares outstanding than it did 5 years ago.
AAN has a better debt/assets ratio than last year.
AAN Yearly Shares OutstandingAAN Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 10M 20M 30M
AAN Yearly Total Debt VS Total AssetsAAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.96, we must say that AAN is in the distress zone and has some risk of bankruptcy.
AAN's Altman-Z score of 0.96 is on the low side compared to the rest of the industry. AAN is outperformed by 77.87% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that AAN is not too dependend on debt financing.
AAN has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: AAN outperforms 53.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF N/A
Altman-Z 0.96
ROIC/WACCN/A
WACC9.27%
AAN Yearly LT Debt VS Equity VS FCFAAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

AAN has a Current Ratio of 0.30. This is a bad value and indicates that AAN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AAN (0.30) is worse than 96.72% of its industry peers.
A Quick Ratio of 0.19 indicates that AAN may have some problems paying its short term obligations.
AAN has a worse Quick ratio (0.19) than 89.34% of its industry peers.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.19
AAN Yearly Current Assets VS Current LiabilitesAAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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2

3. Growth

3.1 Past

AAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -132.41%.
AAN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.94% yearly.
AAN shows a decrease in Revenue. In the last year, the revenue decreased by -8.73%.
AAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.58% yearly.
EPS 1Y (TTM)-132.41%
EPS 3YN/A
EPS 5Y-42.94%
EPS Q2Q%-117.95%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y7.24%
Revenue growth 5Y3.58%
Sales Q2Q%-5.14%

3.2 Future

Based on estimates for the next years, AAN will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.60% on average per year.
AAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.34% yearly.
EPS Next Y-102.06%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
EPS Next 5Y-20.6%
Revenue Next Year-3.08%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.99%
Revenue Next 5Y1.34%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AAN Yearly Revenue VS EstimatesAAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
AAN Yearly EPS VS EstimatesAAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AAN. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 17.23, AAN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AAN is valued a bit cheaper than 63.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AAN to the average of the S&P500 Index (22.68), we can say AAN is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 17.23
AAN Price Earnings VS Forward Price EarningsAAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAN indicates a rather cheap valuation: AAN is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 0.98
AAN Per share dataAAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

AAN's earnings are expected to decrease with -13.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.96%, AAN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.31, AAN pays a better dividend. On top of this AAN pays more dividend than 94.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, AAN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.96%

5.2 History

AAN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
AAN Yearly Dividends per shareAAN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

The earnings of AAN are negative and hence is the payout ratio. AAN will probably not be able to sustain this dividend level.
DP-36.48%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
AAN Yearly Income VS Free CF VS DividendAAN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

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AARON'S CO INC/THE

NYSE:AAN (10/3/2024, 8:04:00 PM)

After market: 10.09 0 (0%)

10.09

+0.1 (+1%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)08-05 2024-08-05/amc
Earnings (Next)10-21 2024-10-21/amc
Inst Owners87.86%
Inst Owner Change-99.91%
Ins Owners3.68%
Ins Owner Change-145.63%
Market Cap318.34M
Analysts51.43
Price Target10.28 (1.88%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.96%
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP-36.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-185.44%
Min EPS beat(2)-266.32%
Max EPS beat(2)-104.57%
EPS beat(4)0
Avg EPS beat(4)-336.25%
Min EPS beat(4)-887.96%
Max EPS beat(4)-86.14%
EPS beat(8)4
Avg EPS beat(8)-44.8%
EPS beat(12)8
Avg EPS beat(12)-17.65%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.4%
Max Revenue beat(2)-1.98%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-3.4%
Max Revenue beat(4)-1.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.86%
Revenue beat(12)3
Avg Revenue beat(12)-0.86%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)-14.72%
EPS NQ rev (3m)-29.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-113.14%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 17.23
P/S 0.15
P/FCF N/A
P/OCF 5.39
P/B 0.48
P/tB 0.64
EV/EBITDA 0.98
EPS(TTM)-0.47
EYN/A
EPS(NY)0.59
Fwd EY5.8%
FCF(TTM)-1.08
FCFYN/A
OCF(TTM)1.87
OCFY18.57%
SpS65.6
BVpS20.85
TBVpS15.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.4%
ROE -6.47%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 52.53%
FCFM N/A
ROA(3y)2.5%
ROA(5y)-2.14%
ROE(3y)4.98%
ROE(5y)-3.82%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.13%
ROCE(5y)9.77%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-44.69%
OM growth 5Y-28.43%
PM growth 3YN/A
PM growth 5Y-45.82%
GM growth 3Y-5.74%
GM growth 5Y-2.88%
F-Score4
Asset Turnover1.17
Health
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF N/A
Debt/EBITDA 0.4
Cap/Depr 17.59%
Cap/Sales 4.5%
Interest Coverage N/A
Cash Conversion 11.62%
Profit Quality N/A
Current Ratio 0.3
Quick Ratio 0.19
Altman-Z 0.96
F-Score4
WACC9.27%
ROIC/WACCN/A
Cap/Depr(3y)17.01%
Cap/Depr(5y)15.28%
Cap/Sales(3y)4.75%
Cap/Sales(5y)4.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-132.41%
EPS 3YN/A
EPS 5Y-42.94%
EPS Q2Q%-117.95%
EPS Next Y-102.06%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
EPS Next 5Y-20.6%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y7.24%
Revenue growth 5Y3.58%
Sales Q2Q%-5.14%
Revenue Next Year-3.08%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.99%
Revenue Next 5Y1.34%
EBIT growth 1Y-143.99%
EBIT growth 3Y-40.69%
EBIT growth 5Y-25.86%
EBIT Next Year380.41%
EBIT Next 3Y83.29%
EBIT Next 5Y47.46%
FCF growth 1Y-220.09%
FCF growth 3Y-33.07%
FCF growth 5Y-6.35%
OCF growth 1Y-55.53%
OCF growth 3Y-20.26%
OCF growth 5Y-0.66%