Rent-A-Center Inc

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RCII : NASDAQ : Services
$13.26 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 799,500
07/27/16 - 4:00 PM ET

Financial Analysis


RENT-A-CENTER INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

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

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)835.65877.64
EBITDA ($mil)244.57256.0
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 Margin84.8284.8
EBITDA Margin29.2629.16
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)53.0953.03
Div / share0.080.24
EPS0.470.51
Book value / share9.3426.5
Institutional Own % n/a n/a
Avg Daily Volume891830.01443872.0

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 1.36 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. 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 24.35   RCII 2.95 Peers 15.74

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.

 

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 6.05 Peers 20.26   RCII NA Peers 2.04

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 1.36 Peers 13.96   RCII -1004.97 Peers -3.13

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 0.21 Peers 1.56   RCII 0.91 Peers 8.06

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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