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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Rent A Center Inc De. To summarize, we found that Rent A Center Inc De ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 244.67% on a DCF basis. 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 14.98; that's higher than 84.09% of US stocks in the Industrials sector that have positive free cash flow.
Rent A Center Inc De's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 16.55% 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 merely 16.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NWPX, CVEO, HOLI, MAN, and MEC can be thought of as valuation peers to RCII, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Rent-A-Center (RCII) +3% expects Q3 revenues $695M-$715M vs. consensus of $687.02M, Adj. EBITDA of $85M-$95M, and Non-GAAP EPS of $0.95 and $1.05 vs. consensus of $0.61. Q3 same store sales to be between 10-12%.The company revised FY20 guidance higher:Revenues of $2.78B-$2.83B vs.$2.77B consensus.Non-GAAP EPS of $3.15-$3.45 vs. $2.75 consensus.FCF of $155M-$180M.Adj. EBITDA of...
On Wednesday, Rent-A-Center received an upgrade to its Relative Strength (RS) Rating, from 79 to 84. When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
You are an astute investor, you do your homework, and you identify a company whose product will be in demand. You are so confident about it that you take the money you are saving for a new set of golf clubs, and use it to buy the company’s stock. You are now eagerly awaiting the results.The company reports earnings and you are right – demand for its product is skyrocketing. However, unbelievably, the stock is down and you actually lost money. There is nothing more frustrating than being right and losing money. What happened?In today’s market, there are many factors that can influence the price of a stock besides fundamental analysis. In times like these, an investor needs a more comprehensive way to analyze investment opportunities.TipRanks has a tool that does exactly that. Building on...