The capital turnover (annual revenue relative to shareholder's equity) for RCII is 5.55 -- better than 92.52% of US stocks.
With a year-over-year growth in debt of -41.89%, Rent A Center Inc De's debt growth rate surpasses just 6.65% of about US stocks.
Rent A Center Inc De's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 25.73%, greater than the shareholder yield of 89.42% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Rent A Center Inc De, a group of peers worth examining would be VLGEA, LL, HY, FOSL, and BBBY.
Rent-A-Center leases household durable goods to customers on a rent-to-own basis, such as consumer electronics, appliances, computers, furniture, and accessories. The company was founded in 1986 and is based in Plano, Texas.
RCII Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RCII, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Rent A Center Inc De ranked in the 74th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Rent A Center Inc De ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 10.3 -- which is good for besting 75.16% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Rent A Center Inc De's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 17.97% of tickers in our DCF set.
RCII's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 17.97% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RCII, try NWPX, AIT, EME, TAYD, and CVEO.
Image source Consumer goods retailer Rent-A-Center (RCII) has seen its stock go through a hugely volatile rollercoaster ride this year. Initial pandemic-fueled fears of a sharp and deep contraction pushed the stock down by about two-thirds into March, but shares actually hit a new 2020 high about a month ago....
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