AAN:NYE-Aaron's, Inc (USD)

COMMON STOCK | Rental & Leasing Services | NYE

Last Closing Price

USD 45.04

Change

+0.31 (+0.69)%

Market Cap

USD 2.89B

Volume

0.55M

Average Target Price

USD 52.06 (+15.59%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Aaron's, Inc. operates as an omnichannel provider of lease-purchase solutions to underserved and credit-challenged customers. It operates in three segments: Progressive Leasing, Aaron's Business, and Vive. The company offers its lease-purchase solutions to customers for various products in the furniture and appliance, jewelry, mobile phones and accessories, mattress, and automobile electronics and accessories industries. It also engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. In addition, the company manufactures and sells bedding, including mattresses and box springs; and upholstered living-room furniture, such as contemporary sofas, chairs, modular sofa, and ottoman collections. Further, it provides revolving loans through third-party federally insured banks to customers that may not qualify for traditional prime lending. As of December 31, 2019, the company operated through 1,502 Aaron's stores, including 1,167 company-operated stores; and 335 franchised stores in the United States, Canada, and Puerto Rico, as well as its e-commerce platform, aarons.com. Aaron's, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-07-06 )

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ETFs Containing AAN

Symbol Name Weight Mer Price(Change) Market Cap
WBIA WBI BullBear Rising Incom.. 4.42 % 1.08 %

N/A

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KSCD KFA Small Cap Quality Div.. 2.77 % 0.51 %

+0.05 (+0.25%)

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RYJ Invesco Raymond James SB-.. 0.90 % 0.82 %

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USD0.11B
ETHO Etho Climate Leadership U.. 0.58 % 0.47 %

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UCC ProShares Ultra Consumer .. 0.00 % 0.95 %

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UMDD ProShares UltraPro MidCap.. 0.00 % 0.95 %

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USD0.02B
RALS ProShares RAFI Long/Short 0.00 % 0.95 %

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USD5.37M
CHEP AGFiQ U.S. Market Neutral.. 0.00 % 1.61 %

-0.01 (-0.07%)

USD0.73M
MVV ProShares Ultra MidCap400 0.00 % 0.95 %

+0.58 (+2.01%)

USD0.11B
BTAL AGFiQ U.S. Market Neutral.. 0.00 % 2.11 %

-0.14 (-0.57%)

USD0.16B

Market Performance

  Market Performance vs.
Industry/Classification (Rental & Leasing Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -21.13% 74% C 33% F
Dividend Return 0.14% 11% F 4% F
Total Return -20.99% 74% C 32% F
Trailing 12 Months  
Capital Gain -29.89% 39% F 24% F
Dividend Return 0.24% 10% F 4% F
Total Return -29.65% 39% F 23% F
Trailing 5 Years  
Capital Gain 25.60% 92% A- 75% C
Dividend Return 1.71% 13% F 8% F
Total Return 27.31% 83% B 66% D
Average Annual (5 Year Horizon)  
Capital Gain 20.99% 77% C+ 92% A-
Dividend Return 0.33% 11% F 9% F
Total Return 21.32% 77% C+ 90% A-
Risk Return Profile  
Volatility (Standard Deviation) 33.74% 54% F 17% F
Risk Adjusted Return 63.19% 92% A- 70% C-
Market Capitalization 2.89B 84% B 71% C-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Rental & Leasing Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 53.67 6% F 10% F
Price/Book Ratio 2.07 13% F 35% F
Price / Cash Flow Ratio 9.11 11% F 35% F
EV/EBITDA 1.92 100% A+ 92% A-
Management Effectiveness  
Return on Equity -18.69% 17% F 16% F
Return on Invested Capital 14.99% 100% A+ 85% B
Return on Assets 7.47% 100% A+ 89% B+
Debt to Equity Ratio 19.48% 95% A 83% B
Technical Ratios  
Short Ratio 4.14 47% F 20% F
Short Percent 7.79% 43% F 44% F
Beta 1.60 78% C+ 22% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.