RENT-A-CENTER INC (RCII) Fundamental Analysis & Valuation

NASDAQ:RCII • US76009N1000

26.78 USD
-0.03 (-0.11%)
At close: Feb 24, 2023
26.09 USD
-0.69 (-2.58%)
After Hours: 2/24/2023, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This RCII fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

RCII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Specialty Retail industry. RCII has only an average score on both its financial health and profitability. RCII has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

4

1. RCII Profitability Analysis

1.1 Basic Checks

  • RCII had positive earnings in the past year.
  • RCII had a positive operating cash flow in the past year.
RCII Yearly Net Income VS EBIT VS OCF VS FCFRCII Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 100M -100M 200M 300M 400M

1.2 Ratios

  • RCII has a Return On Assets of 0.71%. This is in the lower half of the industry: RCII underperforms 72.64% of its industry peers.
  • RCII has a Return On Equity of 3.56%. This is in the lower half of the industry: RCII underperforms 63.21% of its industry peers.
  • RCII has a Return On Invested Capital (12.42%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RCII is significantly above the industry average of 13.59%.
  • The last Return On Invested Capital (12.42%) for RCII is well below the 3 year average (30.27%), which needs to be investigated, but indicates that RCII had better years and this may not be a problem.
Industry RankSector Rank
ROA 0.71%
ROE 3.56%
ROIC 12.42%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.27%
ROIC(5y)N/A
RCII Yearly ROA, ROE, ROICRCII Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 20 -20

1.3 Margins

  • RCII has a worse Profit Margin (0.44%) than 75.47% of its industry peers.
  • RCII's Profit Margin has improved in the last couple of years.
  • RCII has a Operating Margin (6.93%) which is in line with its industry peers.
  • RCII's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 48.63%, RCII is doing good in the industry, outperforming 79.25% of the companies in the same industry.
  • In the last couple of years the Gross Margin of RCII has declined.
Industry RankSector Rank
OM 6.93%
PM (TTM) 0.44%
GM 48.63%
OM growth 3Y31.31%
OM growth 5Y28%
PM growth 3Y109.65%
PM growth 5YN/A
GM growth 3Y-8.4%
GM growth 5Y-5.67%
RCII Yearly Profit, Operating, Gross MarginsRCII Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. RCII Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RCII is creating value.
  • RCII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RCII Yearly Shares OutstandingRCII Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 20M 40M 60M
RCII Yearly Total Debt VS Total AssetsRCII Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • RCII has an Altman-Z score of 3.21. This indicates that RCII is financially healthy and has little risk of bankruptcy at the moment.
  • RCII has a Altman-Z score of 3.21. This is in the better half of the industry: RCII outperforms 66.04% of its industry peers.
  • RCII has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as RCII would need 3.32 years to pay back of all of its debts.
  • RCII has a better Debt to FCF ratio (3.32) than 76.42% of its industry peers.
  • A Debt/Equity ratio of 2.50 is on the high side and indicates that RCII has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.50, RCII is not doing good in the industry: 73.58% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.5
Debt/FCF 3.32
Altman-Z 3.21
ROIC/WACC1.25
WACC9.91%
RCII Yearly LT Debt VS Equity VS FCFRCII Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.88 indicates that RCII should not have too much problems paying its short term obligations.
  • With an excellent Current ratio value of 1.88, RCII belongs to the best of the industry, outperforming 80.19% of the companies in the same industry.
  • A Quick Ratio of 0.46 indicates that RCII may have some problems paying its short term obligations.
  • The Quick ratio of RCII (0.46) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 0.46
RCII Yearly Current Assets VS Current LiabilitesRCII Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. RCII Growth Analysis

3.1 Past

  • The earnings per share for RCII have decreased strongly by -28.91% in the last year.
  • Measured over the past years, RCII shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.44% on average per year.
  • RCII shows a small growth in Revenue. In the last year, the Revenue has grown by 7.21%.
  • The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-28.91%
EPS 3Y75.31%
EPS 5Y48.44%
EPS Q2Q%-38.16%
Revenue 1Y (TTM)7.21%
Revenue growth 3Y19.88%
Revenue growth 5Y9.11%
Sales Q2Q%-13.32%

3.2 Future

  • RCII is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.38% yearly.
  • RCII is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.10% yearly.
EPS Next Y-34.02%
EPS Next 2Y-20.68%
EPS Next 3Y-9.64%
EPS Next 5Y-4.38%
Revenue Next Year-7.76%
Revenue Next 2Y-6.15%
Revenue Next 3Y-2.54%
Revenue Next 5Y-1.1%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RCII Yearly Revenue VS EstimatesRCII Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
RCII Yearly EPS VS EstimatesRCII Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6

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Find the best growth stocksShow best growing peers

6

4. RCII Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 6.85 indicates a rather cheap valuation of RCII.
  • Based on the Price/Earnings ratio, RCII is valued a bit cheaper than the industry average as 79.25% of the companies are valued more expensively.
  • RCII's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.70.
  • A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of RCII.
  • Based on the Price/Forward Earnings ratio, RCII is valued a bit cheaper than 72.64% of the companies in the same industry.
  • RCII's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
Industry RankSector Rank
PE 6.85
Fwd PE 7.67
RCII Price Earnings VS Forward Price EarningsRCII Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCII is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCII indicates a rather cheap valuation: RCII is cheaper than 99.06% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.62
EV/EBITDA 5.9
RCII Per share dataRCII EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • A cheap valuation may be justified as RCII's earnings are expected to decrease with -9.64% in the coming years.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-20.68%
EPS Next 3Y-9.64%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. RCII Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.51%, RCII is a good candidate for dividend investing.
  • RCII's Dividend Yield is rather good when compared to the industry average which is at 2.38. RCII pays more dividend than 96.23% of the companies in the same industry.
  • RCII's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 5.51%

5.2 History

  • RCII has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of RCII decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
RCII Yearly Dividends per shareRCII Yearly Dividends per shareYearly Dividends per share 2016 2017 2019 2020 2021 2022 0.5 1

5.3 Sustainability

  • 403.30% of the earnings are spent on dividend by RCII. This is not a sustainable payout ratio.
DP403.3%
EPS Next 2Y-20.68%
EPS Next 3Y-9.64%
RCII Yearly Income VS Free CF VS DividendRCII Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 100M -100M 200M 300M
RCII Dividend Payout.RCII Dividend Payout, showing the Payout Ratio.RCII Dividend Payout.PayoutRetained Earnings

More info and screens

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RCII Fundamentals: All Metrics, Ratios and Statistics

RENT-A-CENTER INC

NASDAQ:RCII (2/24/2023, 8:00:01 PM)

After market: 26.09 -0.69 (-2.58%)

26.78

-0.03 (-0.11%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-23
Earnings (Next)05-02
Inst Owners80.68%
Inst Owner Change2.72%
Ins Owners6.65%
Ins Owner Change0%
Market Cap1.49B
Revenue(TTM)4.43B
Net Income(TTM)19.52M
Analysts80
Price Target35.13 (31.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.51%
Yearly Dividend1.24
Dividend Growth(5Y)N/A
DP403.3%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.62%
Min EPS beat(2)3.55%
Max EPS beat(2)13.69%
EPS beat(4)3
Avg EPS beat(4)-3.57%
Min EPS beat(4)-34.34%
Max EPS beat(4)13.69%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)2.18%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.13%
PT rev (3m)-0.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.75%
Valuation
Industry RankSector Rank
PE 6.85
Fwd PE 7.67
P/S 0.34
P/FCF 3.62
P/OCF 3.12
P/B 2.72
P/tB N/A
EV/EBITDA 5.9
EPS(TTM)3.91
EY14.6%
EPS(NY)3.49
Fwd EY13.04%
FCF(TTM)7.4
FCFY27.65%
OCF(TTM)8.59
OCFY32.07%
SpS79.51
BVpS9.85
TBVpS-2.07
PEG (NY)N/A
PEG (5Y)0.14
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.71%
ROE 3.56%
ROCE N/A
ROIC 12.42%
ROICexc 13.54%
ROICexgc 21.27%
OM 6.93%
PM (TTM) 0.44%
GM 48.63%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)30.27%
ROIC(5y)N/A
ROICexc(3y)25.34%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y28.81%
ROICexgc growth 5Y29.73%
ROICexc growth 3Y15.41%
ROICexc growth 5Y21.16%
OM growth 3Y31.31%
OM growth 5Y28%
PM growth 3Y109.65%
PM growth 5YN/A
GM growth 3Y-8.4%
GM growth 5Y-5.67%
F-Score5
Asset Turnover1.6
Health
Industry RankSector Rank
Debt/Equity 2.5
Debt/FCF 3.32
Debt/EBITDA 3
Cap/Depr 44%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 2111.29%
Current Ratio 1.88
Quick Ratio 0.46
Altman-Z 3.21
F-Score5
WACC9.91%
ROIC/WACC1.25
Cap/Depr(3y)44.07%
Cap/Depr(5y)51.22%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)151.15%
Profit Quality(5y)694.43%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.91%
EPS 3Y75.31%
EPS 5Y48.44%
EPS Q2Q%-38.16%
EPS Next Y-34.02%
EPS Next 2Y-20.68%
EPS Next 3Y-9.64%
EPS Next 5Y-4.38%
Revenue 1Y (TTM)7.21%
Revenue growth 3Y19.88%
Revenue growth 5Y9.11%
Sales Q2Q%-13.32%
Revenue Next Year-7.76%
Revenue Next 2Y-6.15%
Revenue Next 3Y-2.54%
Revenue Next 5Y-1.1%
EBIT growth 1Y-28.39%
EBIT growth 3Y57.42%
EBIT growth 5Y39.67%
EBIT Next Year-27.85%
EBIT Next 3Y-6.53%
EBIT Next 5Y-3.7%
FCF growth 1Y63.75%
FCF growth 3Y18.25%
FCF growth 5Y2.4%
OCF growth 1Y68.67%
OCF growth 3Y19.92%
OCF growth 5Y2.07%

RENT-A-CENTER INC / RCII FAQ

What is the fundamental rating for RCII stock?

ChartMill assigns a fundamental rating of 4 / 10 to RCII.


Can you provide the valuation status for RENT-A-CENTER INC?

ChartMill assigns a valuation rating of 7 / 10 to RENT-A-CENTER INC (RCII). This can be considered as Undervalued.


Can you provide the profitability details for RENT-A-CENTER INC?

RENT-A-CENTER INC (RCII) has a profitability rating of 1 / 10.


What is the valuation of RENT-A-CENTER INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for RENT-A-CENTER INC (RCII) is 6.85 and the Price/Book (PB) ratio is 2.72.


What is the financial health of RENT-A-CENTER INC (RCII) stock?

The financial health rating of RENT-A-CENTER INC (RCII) is 5 / 10.