Rent-A-Center Stock Analysis, Valuation (NASDAQ:RCII)

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$9.64 $0.41 (4.08%) RCII stock closing price Apr 20, 2018 (Closing)
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Rent-A-Center
Updated on : Apr 20, 2018
previous close
RCII 9.6 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Consumer Discretionary-Misc
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.5%
Operating Profit
Operating Margin:
-2.3%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
672.9M
Debt/Equity Ratio:
 2.47
Compared to the industry
Cash Flow
Operating cash flow:
-$24.9M
Net Income:
$34.8M
Dividend Yield
RCII dividend yield:
2.49%
PROS      CONS
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
RCII PS :
0.2
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
0.5%
Return on Equity:
2.6%
Free Cash Flow Margin:
-5.7%
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Rent-A-Center Stock Analysis

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Investors can watch the Amigobulls Rent-A-Center stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for RCII stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Rent-A-Center Inc Stock Rating 1.6/5

Amigobulls RCII stock analysis relies on business fundamentals such as Rent-A-Center revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. We compare Rent-A-Center valuation with its sector peers to gauge relative attractiveness of RCII stock. Rent-A-Center stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy RCII stock?

  • The lower PS ratio 0.2 for RCII stock versus Consumer Discretionary-Misc industry average of 1.6 is a positive for the company.

Should you sell RCII stock?

  • Rent-A-Center revenue saw a decline of -6.6% YoY in 2017 Q4.
  • The company saw an average annual sales decline of -2.5% in sales over the last 5 years.
  • Over the last twelve months, Rent-A-Center posted an average operating loss margin of -2.3%.
  • Rent-A-Center posted a TTM Net margin of 0.2%.
  • Rent-A-Center is debt laden and has a high debt/equity ratio of  2.47.
  • The lack of profits renders the PE ratio useless for RCII stock.
  • Rent-A-Center has a low ROIC (Return on Invested Capital) of 0.5%.
  • Rent-A-Center has a negative FCF (Free Cash Flow) margin of -5.7%.

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Comments on this video and Rent-A-Center stock

Investors can use Amigobulls Rent-A-Center stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Rent-A-Center revenue growth and profit or net income are two main metrics which help in identifying whether RCII stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Rent-A-Center stock.