Rent-A-Center Inc

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RCII : NASDAQ : Services
$10.19 up 0.14 | 1.39%
Today's Range: 9.72 - 10.24
Avg. Daily Volume: 1107000.0
01/18/17 - 4:00 PM ET

Financial Analysis


RENT-A-CENTER INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased.

At the same time, stockholders' equity ("net worth") has significantly decreased by 63.91% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)693.88791.61
EBITDA ($mil)195.09238.4
EBIT ($mil)17.6642.46
Net Income ($mil)6.18-4.09


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)130.3160.07
Total Assets ($mil)1748.813038.96
Total Debt ($mil)724.92914.37
Equity ($mil)506.061402.3


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin88.5888.34
EBITDA Margin28.1130.11
Operating Margin2.545.36
Sales Turnover1.761.08
Return on Assets-49.852.36
Return on Equity-172.275.12
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.590.39
Interest Expense11.7112.49
Interest Coverage1.513.4


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)53.1553.07
Div / share0.080.24
EPS0.12-0.08
Book value / share9.5226.43
Institutional Own % n/a n/a
Avg Daily Volume1117985.01043478.0

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. For additional comparison, its price-to-book ratio of 1.11 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 14.02. 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 22.21   RCII 1.58 Peers 13.98

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 8.81 Peers 21.03   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 1.11 Peers 14.02   RCII -1325.37 Peers -15.95

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 0.18 Peers 1.49   RCII -6.35 Peers 7.65

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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