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

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$14.74 $0 (0%) RCII stock closing price Jul 20, 2018 (Closing)

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 1.7/5

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 2018 Q1 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?

  • RCII stock is trading at a favorable price to sales multiple of 0.3 as against the Consumer Discretionary sector average multiple of 1.6.
  • Rent-A-Center has a healthy FCF (Free Cash Flow) margin of 12.2.

Should you sell RCII stock?

  • Rent-A-Center revenue saw a decline of -5.9% YoY in 2018-03.
  • Sales declined by -2.8 annually over the last 5 years.
  • Rent-A-Center reported an average operating margin of -2.8 over the Last Twelve Months (LTM).
  • Rent-A-Center posted an average Net loss of -0.2% in the last twelve months.
  • Rent-A-Center is debt laden and has a high debt/equity ratio of 2.34.
  • The company does not have profits. Hence the PE ratio is meaningless for RCII stock.
  • Rent-A-Center has a negative ROIC (Return on Invested Capital) of -0.5.
  • Rent-A-Center has a negative ROE (Return On Equity) of -2.6, indicating the company is not profitable.

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.