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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 2.41
AAN's Cash to Debt is ranked higher than
70% of the 238 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.39 vs. AAN: 2.41 )
AAN' s 10-Year Cash to Debt Range
Min: 0   Max: 2.41
Current: 2.41

0
2.41
Equity to Asset 0.62
AAN's Equity to Asset is ranked higher than
75% of the 240 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.44 vs. AAN: 0.62 )
AAN' s 10-Year Equity to Asset Range
Min: 0.49   Max: 0.67
Current: 0.62

0.49
0.67
Interest Coverage 33.33
AAN's Interest Coverage is ranked higher than
71% of the 171 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.09 vs. AAN: 33.33 )
AAN' s 10-Year Interest Coverage Range
Min: 4.17   Max: 62.46
Current: 33.33

4.17
62.46
F-Score: 6
Z-Score: 4.80
M-Score: -3.08
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 8.37
AAN's Operating margin (%) is ranked higher than
69% of the 235 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 7.76 vs. AAN: 8.37 )
AAN' s 10-Year Operating margin (%) Range
Min: 4.78   Max: 12.52
Current: 8.37

4.78
12.52
Net-margin (%) 5.40
AAN's Net-margin (%) is ranked higher than
69% of the 235 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 4.26 vs. AAN: 5.40 )
AAN' s 10-Year Net-margin (%) Range
Min: 2.26   Max: 7.82
Current: 5.4

2.26
7.82
ROE (%) 10.59
AAN's ROE (%) is ranked higher than
78% of the 235 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.11 vs. AAN: 10.59 )
AAN' s 10-Year ROE (%) Range
Min: 5.61   Max: 15.79
Current: 10.59

5.61
15.79
ROA (%) 6.60
AAN's ROA (%) is ranked higher than
86% of the 240 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.08 vs. AAN: 6.60 )
AAN' s 10-Year ROA (%) Range
Min: 3.11   Max: 9.54
Current: 6.6

3.11
9.54
ROC (Joel Greenblatt) (%) 29.92
AAN's ROC (Joel Greenblatt) (%) is ranked higher than
83% of the 237 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 11.95 vs. AAN: 29.92 )
AAN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 8.81   Max: 37.77
Current: 29.92

8.81
37.77
Revenue Growth (%) 8.60
AAN's Revenue Growth (%) is ranked higher than
76% of the 170 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.30 vs. AAN: 8.60 )
AAN' s 10-Year Revenue Growth (%) Range
Min: -11   Max: 91.9
Current: 8.6

-11
91.9
EBITDA Growth (%) 8.20
AAN's EBITDA Growth (%) is ranked higher than
73% of the 158 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.30 vs. AAN: 8.20 )
AAN' s 10-Year EBITDA Growth (%) Range
Min: -10.5   Max: 93.6
Current: 8.2

-10.5
93.6
EPS Growth (%) 3.10
AAN's EPS Growth (%) is ranked higher than
67% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.70 vs. AAN: 3.10 )
AAN' s 10-Year EPS Growth (%) Range
Min: -13.7   Max: 56.5
Current: 3.1

-13.7
56.5
» AAN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

AAN Guru Trades in Q2 2013

James Barrow 1,602,607 sh (New)
Scott Black 57,795 sh (+247.99%)
David Dreman 397,994 sh (+104.53%)
Paul Tudor Jones 25,000 sh (+49.7%)
Diamond Hill Capital 1,343,417 sh (+17.69%)
John Keeley 958,615 sh (+14.83%)
Mario Gabelli 1,211,736 sh (+1.38%)
Jim Simons 420,324 sh (-4.87%)
Chuck Royce 22,000 sh (-5.17%)
» More
Q3 2013

AAN Guru Trades in Q3 2013

First Pacific Advisors 119,100 sh (New)
Chuck Royce 50,100 sh (+127.73%)
Diamond Hill Capital 1,812,748 sh (+34.94%)
John Keeley 1,273,565 sh (+32.85%)
Paul Tudor Jones 31,000 sh (+24%)
James Barrow 1,797,886 sh (+12.19%)
Scott Black 61,480 sh (+6.38%)
Mario Gabelli 1,229,846 sh (+1.49%)
FPA Capital Fund 57,600 sh (unchged)
Jim Simons 280,424 sh (-33.28%)
David Dreman 202,779 sh (-49.05%)
» More
Q4 2013

AAN Guru Trades in Q4 2013

Charles Brandes 38,375 sh (New)
First Pacific Advisors 951,600 sh (+698.99%)
FPA Capital Fund 444,500 sh (+671.7%)
Chuck Royce 61,700 sh (+23.15%)
David Dreman 230,190 sh (+13.52%)
Diamond Hill Capital 2,031,370 sh (+12.06%)
John Keeley 1,308,700 sh (+2.76%)
Mario Gabelli 1,239,301 sh (+0.77%)
James Barrow Sold Out
Jim Simons Sold Out
Scott Black 58,725 sh (-4.48%)
Paul Tudor Jones 23,900 sh (-22.9%)
» More
Q1 2014

AAN Guru Trades in Q1 2014

FPA Capital Fund 444,500 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with AAN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
FPA Capital Fund 2013-12-31 Add 671.7%1.31%$27.36 - $30.22 $ 30.134%444500
James Barrow 2013-12-31 Sold Out 0.08%$27.36 - $30.22 $ 30.134%0
Charles Brandes 2013-12-31 New Buy0.01%$27.36 - $30.22 $ 30.134%38375
David Dreman 2013-09-30 Reduce -49.05%0.16%$26.68 - $29.69 $ 30.138%202779
John Keeley 2013-09-30 Add 32.85%0.16%$26.68 - $29.69 $ 30.138%1273565
Scott Black 2013-06-30 Add 247.99%0.14%$27.19 - $29.28 $ 30.137%57795
James Barrow 2013-06-30 New Buy0.08%$27.19 - $29.28 $ 30.137%1602607
David Dreman 2013-06-30 Add 104.53%$27.19 - $29.28 $ 30.137%397994
David Dreman 2013-03-31 New Buy0.15%$27.29 - $30.6 $ 30.134%194585
John Keeley 2013-03-31 Add 30.12%0.11%$27.29 - $30.6 $ 30.134%834825
Scott Black 2013-03-31 New Buy0.06%$27.29 - $30.6 $ 30.134%16608
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

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Top Ranked Articles about Aaron's Inc

Consensus Stocks ‘A to Z’ - Second Quarter Action
For consensus picks at the well-publicized end, everyone knows the Gurus are buying Apple Inc. (AAPL) and U.S. Bancorp (USB), stocks held by numerous investor billionaires, but the activity on less-publicized stocks is not always top of mind. Here’s the most recent action on four stocks, listed from A to Z, covering Aaron’s Inc. to Zoetis Inc., pulled from the middle ground of stocks popular with Gurus. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 18.90
AAN's P/E(ttm) is ranked higher than
58% of the 206 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 17.90 vs. AAN: 18.90 )
AAN' s 10-Year P/E(ttm) Range
Min: 9.7   Max: 26.77
Current: 18.9

9.7
26.77
P/B 2.00
AAN's P/B is ranked higher than
53% of the 236 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.78 vs. AAN: 2.00 )
AAN' s 10-Year P/B Range
Min: 1.13   Max: 3.03
Current: 2

1.13
3.03
P/S 1.00
AAN's P/S is ranked higher than
59% of the 244 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.20 vs. AAN: 1.00 )
AAN' s 10-Year P/S Range
Min: 0.54   Max: 1.23
Current: 1

0.54
1.23
PFCF 9.10
AAN's PFCF is ranked higher than
79% of the 120 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 19.03 vs. AAN: 9.10 )
AAN' s 10-Year PFCF Range
Min: 8.21   Max: 2875
Current: 9.1

8.21
2875
EV-to-EBIT 10.20
AAN's EV-to-EBIT is ranked higher than
79% of the 216 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 15.03 vs. AAN: 10.20 )
AAN' s 10-Year EV-to-EBIT Range
Min: 6   Max: 14.5
Current: 10.2

6
14.5
PEG 2.00
AAN's PEG is ranked higher than
59% of the 110 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.14 vs. AAN: 2.00 )
AAN' s 10-Year PEG Range
Min: 0.6   Max: 3.17
Current: 2

0.6
3.17
Shiller P/E 18.50
AAN's Shiller P/E is ranked higher than
69% of the 89 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 20.75 vs. AAN: 18.50 )
AAN' s 10-Year Shiller P/E Range
Min: 11.89   Max: 33.29
Current: 18.5

11.89
33.29

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.30
AAN's Dividend Yield is ranked lower than
97% of the 156 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.90 vs. AAN: 0.30 )
AAN' s 10-Year Dividend Yield Range
Min: 0.05   Max: 0.43
Current: 0.3

0.05
0.43
Dividend Payout 0.05
AAN's Dividend Payout is ranked higher than
98% of the 136 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.34 vs. AAN: 0.05 )
AAN' s 10-Year Dividend Payout Range
Min: 0.03   Max: 0.05
Current: 0.05

0.03
0.05
Dividend growth (3y) 13.70
AAN's Dividend growth (3y) is ranked higher than
78% of the 83 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.30 vs. AAN: 13.70 )
AAN' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 16.6
Current: 13.7

0
16.6
Yield on cost (5-Year) 0.35
AAN's Yield on cost (5-Year) is ranked lower than
91% of the 158 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.18 vs. AAN: 0.35 )
AAN' s 10-Year Yield on cost (5-Year) Range
Min: 0.09   Max: 0.76
Current: 0.35

0.09
0.76
Share Buyback Rate 2.40
AAN's Share Buyback Rate is ranked higher than
93% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: -3.10 vs. AAN: 2.40 )
AAN' s 10-Year Share Buyback Rate Range
Min: 38.2   Max: -31.9
Current: 2.4

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 16.10
AAN's Price/Net Current Asset Value is ranked lower than
54% of the 46 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 14.10 vs. AAN: 16.10 )
AAN' s 10-Year Price/Net Current Asset Value Range
Min: 15.72   Max: 185.36
Current: 16.1

15.72
185.36
Price/Tangible Book 2.60
AAN's Price/Tangible Book is ranked lower than
53% of the 191 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.90 vs. AAN: 2.60 )
AAN' s 10-Year Price/Tangible Book Range
Min: 0.56   Max: 3.69
Current: 2.6

0.56
3.69
Price/DCF (Projected) 1.10
AAN's Price/DCF (Projected) is ranked higher than
76% of the 89 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.40 vs. AAN: 1.10 )
AAN' s 10-Year Price/DCF (Projected) Range
Min: 1.08   Max: 4.27
Current: 1.1

1.08
4.27
Price/Median PS Value 1.10
AAN's Price/Median PS Value is ranked higher than
76% of the 232 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.14 vs. AAN: 1.10 )
AAN' s 10-Year Price/Median PS Value Range
Min: 0.28   Max: 1.25
Current: 1.1

0.28
1.25
Price/Peter Lynch Fair Value 1.90
AAN's Price/Peter Lynch Fair Value is ranked lower than
51% of the 57 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.20 vs. AAN: 1.90 )
AAN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.5   Max: 4
Current: 1.9

0.5
4
Price/Graham Number 1.50
AAN's Price/Graham Number is ranked higher than
51% of the 165 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.20 vs. AAN: 1.50 )
AAN' s 10-Year Price/Graham Number Range
Min: 0.32   Max: 1.86
Current: 1.5

0.32
1.86
Earnings Yield (Greenblatt) 9.80
AAN's Earnings Yield (Greenblatt) is ranked higher than
79% of the 227 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 6.70 vs. AAN: 9.80 )
AAN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.9   Max: 16.7
Current: 9.8

6.9
16.7
Forward Rate of Return (Yacktman) 12.74
AAN's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 147 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 4.13 vs. AAN: 12.74 )
AAN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 3   Max: 21.9
Current: 12.74

3
21.9

Business Description

Industry: Consulting & Outsourcing » Rental & Leasing Services
Compare:BOX, TAL, HTZ, URI, AYR » details
Aaron's, Inc. was established in 1955 by its former Chairman, R. Charles Loudermilk, Sr., and was incorporated under the laws of Georgia in 1962. The company is a specialty retailer of consumer electronics, computers, residential furniture, household appliances and accessories. It engages in the lease ownership, lease and retail sale of a variety of products such as widescreen and LCD televisions, computers, living room, dining room and bedroom furniture, washers, dryers and refrigerators. It carries some well-known brands such as JVC, Mitsubishi, Panasonic, Sony, Hewlett-Packard, Simmons, Frigidaire, LG, Samsung and Sharp. As of December 31, 2012, the Company had four operating segments: Sales and Lease Ownership, HomeSmart, Franchise, and Woodhaven Furniture. Sales & Lease Ownership division provides durable household goods to lower to middle income consumers who have limited or no access to traditional credit sources such as bank financing, installment credit or credit cards. This segment works on a monthly payment model. HomeSmart offer electronics, residential furniture, appliances and computers to consumers on a weekly payment basis with no credit requirements. The Company's franchise operation sells and supports franchisees of its sales and lease ownership concept. Woodhaven Furniture Industries division manufactures upholstered furniture and bedding predominantly for use by Company-operated and franchised stores. The division has five furniture manufacturing plants and nine bedding manufacturing facilities. As of December 31, 2012, it had 2,073 stores, comprised of 1,324 Company-operated stores in 29 states and 749 independently-owned franchised stores in 48 states and Canada.

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Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
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User Comments

Drossi@linkedin
ReplyDrossi@linkedin - 3 weeks ago
I can't understand why investors are valuing it so much higher than RCII...
Drossi@linkedin
ReplyDrossi@linkedin - 3 weeks ago
How are you arriving at these estimates!?

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