RENT-A-CENTER INC (RCII) Stock Fundamental Analysis
USA - NASDAQ:RCII - US76009N1000 - Common Stock
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 121 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
In the past year RCII was profitable.
RCII had a positive operating cash flow in the past year.
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
RCII has a worse Return On Assets (0.71%) than 72.64% of its industry peers.
RCII's Return On Equity of 3.56% is on the low side compared to the rest of the industry. RCII is outperformed by 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 11.82%.
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 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.
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.
In the last couple of years the Operating Margin of RCII has grown nicely.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
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.
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.
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.
The Debt to Equity ratio of RCII (2.50) is worse 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
A Current Ratio of 1.88 indicates that RCII should not have too much problems paying 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.
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
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.
The Revenue has been growing slightly by 7.21% in the past year.
RCII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
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.
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.
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.
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 26.03.
Based on the 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCII.
99.06% of the companies in the same industry are more expensive than RCII, based on the Price/Free Cash Flow ratio.
| 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
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 5.48. RCII pays more dividend than 96.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 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.
RCII has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RCII pays out 403.30% of its income as dividend. 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 Change0.23%
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.