This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Rent-A-Center Inc
RCII : NASDAQ : Services
$13.93 up0.29 | 2.10%
Today's Range: 13.50 - 14.06
Avg. Daily Volume: 1,323,000
05/06/16 - 3:45 PM ET

Financial Analysis


RENT-A-CENTER INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

At the same time, stockholders' equity ("net worth") has significantly decreased by 64.72% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)835.65877.64
EBITDA ($mil)0.0256.0
EBIT ($mil)50.8756.6
Net Income ($mil)25.0627.3


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)46.3693.12
Total Assets ($mil)1795.423168.55
Total Debt ($mil)744.48898.75
Equity ($mil)495.741405.44


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin61.6484.8
EBITDA Margin0.029.16
Operating Margin6.096.45
Sales Turnover1.81.01
Return on Assets-48.393.04
Return on Equity-175.266.86
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.60.39
Interest Expense11.9812.58
Interest Coverage4.254.5


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)53.0753.03
Div / share0.080.24
EPS0.470.51
Book value / share9.3426.5
Institutional Own % n/a n/a
Avg Daily Volume1490187.0986949.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.47 indicates a discount versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 12.97. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, RENT-A-CENTER INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RCII NM Peers 27.76   RCII NA Peers 15.78

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

RCII's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RCII 6.52 Peers 19.55   RCII NA Peers 2.12

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RCII is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RCII 1.47 Peers 12.97   RCII -1004.97 Peers -144.89

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RCII is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RCII is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RCII 0.22 Peers 1.57   RCII 0.91 Peers 4.83

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RCII is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RCII significantly trails its peers on the basis of sales growth

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs