Rent-A-Center Inc

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RCII : NASDAQ : Services
$9.37 -0.19 | -2.00%
Today's Range: 9.35 - 9.68
Avg. Daily Volume: 1,060,500
10/25/16 - 3:24 PM ET

Financial Analysis

RENT-A-CENTER INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged 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 64.57% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)749.62815.34
EBITDA ($mil)233.96257.02
EBIT ($mil)46.451.3
Net Income ($mil)9.9523.15

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)88.1770.51
Total Assets ($mil)1756.243111.28
Total Debt ($mil)724.7956.19
Equity ($mil)502.511418.71

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin88.9788.78
EBITDA Margin31.2131.52
Operating Margin6.196.29
Sales Turnover1.811.05
Return on Assets-50.223.27
Return on Equity-175.537.18
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Interest Expense11.7412.14
Interest Coverage3.954.22

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)53.1253.05
Div / share0.080.24
Book value / share9.4626.74
Institutional Own % n/a n/a
Avg Daily Volume1052115.0884290.0


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.00 indicates a significant discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 12.09. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RCII NM Peers 21.56   RCII 1.47 Peers 13.79

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RCII 6.29 Peers 19.34   RCII NA Peers 1.89

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RCII 1.00 Peers 12.09   RCII -970.15 Peers 0.98

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RCII 0.16 Peers 1.46   RCII -2.56 Peers 7.28

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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