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Rent-A-Center Inc.
RCII : NASDAQ : Services

$26.13 | %
Today's Range: 25.92 - 26.18
Avg. Daily Volume: 908,200
04/17/14 - 3:59 PM ET

Financial Analysis


RENT-A-CENTER INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

During the same period, stockholders' equity ("net worth") has decreased by 8.59% from the same quarter last year.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)769.61758.38
EBITDA ($mil)225.12256.24
EBIT ($mil)35.4879.3
Net Income ($mil)13.0647.46


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)42.2761.09
Total Assets ($mil)3018.552869.11
Total Debt ($mil)916.28687.5
Equity ($mil)1343.551469.86


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin93.6592.76
EBITDA Margin29.2533.78
Operating Margin4.6110.46
Sales Turnover1.031.07
Return on Assets4.246.39
Return on Equity9.5412.48
Debt Q4 FY13 Q4 FY12
Current Ratio0.00.0
Debt/Capital0.410.32
Interest Expense10.866.65
Interest Coverage3.2711.93


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)52.7458.04
Div / share0.230.21
EPS0.250.81
Book value / share25.4825.33
Institutional Own % n/a n/a
Avg Daily Volume908860.0600410.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 22.47 for the Specialty Retail industry and a discount compared to the S&P 500 average of 18.59. For additional comparison, its price-to-book ratio of 1.03 indicates a significant discount versus the S&P 500 average of 2.56 and a significant discount versus the industry average of 5.81. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of 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 11.29 Peers 22.47   RCII 10.28 Peers 16.36

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RCII is trading at a significant discount to its peers.

 

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

RCII is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RCII 9.72 Peers 17.83   RCII NM Peers 1.48

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.

RCII's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RCII 1.03 Peers 5.81   RCII -24.92 Peers 24.11

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 0.44 Peers 1.30   RCII 0.69 Peers 6.56

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

 

 

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