26.78 USD
-0.03 (-0.11%)
26.09 USD
-0.69 (-2.58%)
Taking everything into account, RCII scores 4 out of 10 in our fundamental rating. RCII was compared to 123 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RCII had positive earnings in the past year.
In the past year RCII had a positive cash flow from operations.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.71%, RCII is doing worse than 72.64% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.56%, RCII is doing worse than 63.21% of the companies in the same industry.
The Return On Invested Capital of RCII (12.42%) 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 12.14%.
The 3 year average ROIC (30.27%) for RCII is well above the current ROIC(12.42%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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
1.3 Margins
RCII's Profit Margin of 0.44% is on the low side compared to the rest of the industry. RCII is outperformed by 75.47% of its industry peers.
RCII's Profit Margin has improved in the last couple of years.
RCII's Operating Margin of 6.93% is in line compared to the rest of the industry. RCII outperforms 55.66% of its industry peers.
RCII's Operating Margin has improved in the last couple of years.
RCII has a better Gross Margin (48.63%) than 79.25% of its industry peers.
RCII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RCII is creating value.
There is no outstanding debt for RCII. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.21 indicates that RCII is not in any danger for bankruptcy at the moment.
RCII has a better Altman-Z score (3.21) than 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.
The Debt to FCF ratio of RCII (3.32) is better 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.
RCII has a worse Debt to Equity ratio (2.50) than 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.25
WACC9.91%
2.3 Liquidity
RCII has a Current Ratio of 1.88. This is a normal value and indicates that RCII is financially healthy and should not expect problems in meeting its short term obligations.
RCII's Current ratio of 1.88 is amongst the best of the industry. RCII outperforms 80.19% of its industry peers.
RCII has a Quick Ratio of 1.88. This is a bad value and indicates that RCII is not financially healthy enough and could expect problems in meeting its short term obligations.
RCII has a Quick ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for RCII have decreased strongly by -28.91% in the last year.
RCII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.44% yearly.
RCII shows a small growth in Revenue. In the last year, the Revenue has grown by 7.21%.
Measured over the past years, RCII shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
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
Based on estimates for the next years, RCII will show a decrease in Earnings Per Share. The EPS will decrease by -4.38% on average per year.
The Revenue is expected to decrease by -1.10% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.85, the valuation of RCII can be described as very cheap.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.51, RCII is valued rather cheaply.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of RCII.
72.64% of the companies in the same industry are more expensive than RCII, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, RCII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
RCII's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RCII is valued cheaper than 99.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.62 | ||
| EV/EBITDA | 5.9 |
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%
5. Dividend
5.1 Amount
RCII has a Yearly Dividend Yield of 5.51%, which is a nice return.
RCII's Dividend Yield is rather good when compared to the industry average which is at 2.01. RCII pays more dividend than 96.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, RCII pays a better dividend.
| Industry Rank | Sector 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
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%
26.78
-0.03 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change1.2%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.