26.78 USD
-0.03 (-0.11%)
26.09 USD
-0.69 (-2.58%)
Overall RCII gets a fundamental rating of 5 out of 10. We evaluated RCII against 122 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.
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.
Of the past 5 years RCII 4 years were profitable.
RCII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RCII (0.71%) is worse than 72.64% of its industry peers.
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.
With a Return On Invested Capital value of 12.42%, RCII perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RCII is significantly above the industry average of 12.16%.
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
Looking at the Profit Margin, with a value of 0.44%, RCII is doing worse than 75.47% of the companies in the same industry.
In the last couple of years the Profit Margin of RCII has grown nicely.
RCII has a Operating Margin of 6.93%. This is comparable to the rest of the industry: RCII outperforms 55.66% of its industry peers.
In the last couple of years the Operating Margin of RCII has grown nicely.
The Gross Margin of RCII (48.63%) is better 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
RCII has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Looking at the Altman-Z score, with a value of 3.21, RCII is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
The Debt to FCF ratio of RCII is 3.32, which is a good value as it means it would take RCII, 3.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.32, RCII is in the better half of the industry, outperforming 76.42% of the companies in the same industry.
RCII has a Debt/Equity ratio of 2.50. This is a high value indicating a heavy dependency on external 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 has a Current ratio of 1.88. This is amongst the best in the industry. RCII outperforms 80.19% of its industry peers.
A Quick Ratio of 0.46 indicates that RCII may have some problems paying its short term obligations.
With a Quick ratio value of 0.46, RCII perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
RCII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.91%.
The Earnings Per Share has been growing by 48.44% on average over the past years. This is a very strong growth
Looking at the last year, RCII shows a small growth in Revenue. The Revenue has grown by 7.21% in the last year.
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
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.
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.
79.25% of the companies in the same industry are more expensive than RCII, based on the Price/Earnings ratio.
RCII's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.26.
With a Price/Forward Earnings ratio of 7.67, the valuation of RCII can be described as very cheap.
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 23.68.
| 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.62 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
RCII's earnings are expected to decrease with -9.64% in the coming years. This may justify a cheaper valuation.
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 1.84. RCII pays more dividend than 96.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, RCII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
RCII has paid a dividend for at least 10 years, which is 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.
What is the valuation status for RCII stock?
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.
Can you provide the financial health for RCII stock?
The financial health rating of RENT-A-CENTER INC (RCII) is 5 / 10.
What is the expected EPS growth for RENT-A-CENTER INC (RCII) stock?
The Earnings per Share (EPS) of RENT-A-CENTER INC (RCII) is expected to decline by -34.02% in the next year.