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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 : 8/10

vs
industry
vs
history
Cash to Debt 0.18
AAN's Cash to Debt is ranked lower than
51% of the 240 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.52 vs. AAN: 0.18 )
AAN' s 10-Year Cash to Debt Range
Min: 0   Max: 3.21
Current: 0.18

0
3.21
Equity to Asset 0.50
AAN's Equity to Asset is ranked higher than
68% of the 236 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.42 vs. AAN: 0.50 )
AAN' s 10-Year Equity to Asset Range
Min: 0.49   Max: 0.71
Current: 0.5

0.49
0.71
Interest Coverage 33.33
AAN's Interest Coverage is ranked higher than
69% of the 168 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 11.65 vs. AAN: 33.33 )
AAN' s 10-Year Interest Coverage Range
Min: 4.17   Max: 61.62
Current: 33.33

4.17
61.62
F-Score: 5
Z-Score: 3.19
M-Score: -1.95
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
67% of the 242 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.06 vs. AAN: 8.37 )
AAN' s 10-Year Operating margin (%) Range
Min: 4.78   Max: 12.58
Current: 8.37

4.78
12.58
Net-margin (%) 5.40
AAN's Net-margin (%) is ranked higher than
68% of the 242 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.13 vs. AAN: 5.40 )
AAN' s 10-Year Net-margin (%) Range
Min: 2.26   Max: 7.79
Current: 5.4

2.26
7.79
ROE (%) 10.59
AAN's ROE (%) is ranked higher than
75% of the 241 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9.39 vs. AAN: 10.59 )
AAN' s 10-Year ROE (%) Range
Min: 5.61   Max: 15.8
Current: 10.59

5.61
15.8
ROA (%) 6.60
AAN's ROA (%) is ranked higher than
87% of the 245 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.31 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 241 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 11.20 vs. AAN: 29.92 )
AAN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 8.81   Max: 38.13
Current: 29.92

8.81
38.13
Revenue Growth (%) 8.60
AAN's Revenue Growth (%) is ranked higher than
78% of the 206 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.50 vs. AAN: 8.60 )
AAN' s 10-Year Revenue Growth (%) Range
Min: -10.4   Max: 45.7
Current: 8.6

-10.4
45.7
EBITDA Growth (%) 8.20
AAN's EBITDA Growth (%) is ranked higher than
72% of the 180 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.00 vs. AAN: 8.20 )
AAN' s 10-Year EBITDA Growth (%) Range
Min: -10.5   Max: 45.7
Current: 8.2

-10.5
45.7
EPS Growth (%) 3.10
AAN's EPS Growth (%) is ranked higher than
60% of the 146 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9.70 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

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%)
Jim Simons Sold Out
James Barrow 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

Steven Cohen 11,229 sh (New)
Charles Brandes 327,995 sh (+754.71%)
David Dreman 231,647 sh (+0.63%)
FPA Capital Fund 444,500 sh (unchged)
First Pacific Advisors 951,600 sh (unchged)
John Keeley Sold Out
Paul Tudor Jones Sold Out
Scott Black Sold Out
Mario Gabelli 1,220,006 sh (-1.56%)
Chuck Royce 57,200 sh (-7.29%)
Diamond Hill Capital 1,332,464 sh (-34.41%)
» More
Q2 2014

AAN Guru Trades in Q2 2014

Paul Tudor Jones 7,000 sh (New)
Tom Gayner 125,000 sh (New)
Chuck Royce 62,500 sh (+9.27%)
First Pacific Advisors 958,200 sh (+0.69%)
FPA Capital Fund 444,500 sh (unchged)
Charles Brandes Sold Out
David Dreman 226,332 sh (-2.29%)
Mario Gabelli 1,180,030 sh (-3.28%)
Diamond Hill Capital 945,324 sh (-29.05%)
» More
» Details

Insider Trades

Latest Guru Trades with AAN

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Tom Gayner 2014-06-30 New Buy0.13%$28.67 - $35.61 $ 25.96-19%125000
Charles Brandes 2014-06-30 Sold Out 0.13%$28.67 - $35.61 $ 25.96-19%0
John Keeley 2014-03-31 Sold Out 0.65%$26.6 - $32.49 $ 25.96-12%0
Scott Black 2014-03-31 Sold Out 0.19%$26.6 - $32.49 $ 25.96-11%0
Charles Brandes 2014-03-31 Add 754.71%0.11%$26.6 - $32.49 $ 25.96-11%327995
FPA Capital Fund 2013-12-31 Add 671.7%1.31%$27.36 - $30.22 $ 25.96-10%444500
James Barrow 2013-12-31 Sold Out 0.08%$27.36 - $30.22 $ 25.96-10%0
Charles Brandes 2013-12-31 New Buy0.01%$27.36 - $30.22 $ 25.96-10%38375
John Keeley 2013-09-30 Add 32.85%0.16%$26.68 - $29.69 $ 25.96-7%1273565
David Dreman 2013-09-30 Reduce -49.05%0.16%$26.68 - $29.69 $ 25.96-7%202779
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Aaron's Inc

Diamond Hill Capital Comments on Aaron's Inc - Jun 26, 2014

Rental and leasing services company Aaron's, Inc. (AAN) declined due to recent lower traffic and weaker comparable store sales trends, which led to downward revisions in the company’s earnings outlook.



We sold rental and leasing services company Aaron’s, Inc. (AAN) due to recent lower traffic and weaker comparable store sales trends, which led to downward revisions in the earnings outlook.



From Diamond Hill Capital's Select Fund Commentary – First Quarter 2014.



Check out Diamond Hill Capital latest stock trades

Top Ranked Articles about Aaron's Inc

Tom Gayner’s Top 5 New Portfolio Picks
Tom Gayner, chief investment officer of Markel (MKL), is certainly a value investor. Markel is commonly referred to as a mini Berkshire. Gayner thinks of stock as a part of a business and the business is worth what the present value of the future cash flows are. “We operate with a Margin of Safety in the investment portfolio,” says Gayner. He also believes that he can earn the best returns by concentrating his focus and portfolio in promising areas where he has the best understanding and knowledge. Read more...
Diamond Hill Capital Comments on Aaron's Inc
Rental and leasing services company Aaron's, Inc. (AAN) declined due to recent lower traffic and weaker comparable store sales trends, which led to downward revisions in the company’s earnings outlook. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 21.40
AAN's P/E(ttm) is ranked higher than
60% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 19.60 vs. AAN: 21.40 )
AAN' s 10-Year P/E(ttm) Range
Min: 9.7   Max: 28.97
Current: 21.4

9.7
28.97
P/B 1.60
AAN's P/B is ranked higher than
67% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.97 vs. AAN: 1.60 )
AAN' s 10-Year P/B Range
Min: 1.13   Max: 3.03
Current: 1.6

1.13
3.03
P/S 0.82
AAN's P/S is ranked higher than
69% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.29 vs. AAN: 0.82 )
AAN' s 10-Year P/S Range
Min: 0.52   Max: 1.23
Current: 0.82

0.52
1.23
PFCF 18.30
AAN's PFCF is ranked higher than
78% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 126.44 vs. AAN: 18.30 )
AAN' s 10-Year PFCF Range
Min: 8.21   Max: 2875
Current: 18.3

8.21
2875
EV-to-EBIT 11.25
AAN's EV-to-EBIT is ranked higher than
83% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 20.73 vs. AAN: 11.25 )
AAN' s 10-Year EV-to-EBIT Range
Min: 6   Max: 21.6
Current: 11.25

6
21.6
PEG 2.30
AAN's PEG is ranked higher than
81% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9999.00 vs. AAN: 2.30 )
AAN' s 10-Year PEG Range
Min: 0.56   Max: 3.17
Current: 2.3

0.56
3.17
Shiller P/E 16.10
AAN's Shiller P/E is ranked higher than
90% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9999.00 vs. AAN: 16.10 )
AAN' s 10-Year Shiller P/E Range
Min: 11.89   Max: 32.55
Current: 16.1

11.89
32.55
Current Ratio 2.16
AAN's Current Ratio is ranked higher than
78% of the 166 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.55 vs. AAN: 2.16 )
AAN' s 10-Year Current Ratio Range
Min: 0.35   Max: 6.63
Current: 2.16

0.35
6.63
Quick Ratio 0.33
AAN's Quick Ratio is ranked lower than
63% of the 166 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.30 vs. AAN: 0.33 )
AAN' s 10-Year Quick Ratio Range
Min: 0.19   Max: 6.63
Current: 0.33

0.19
6.63

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.31
AAN's Dividend Yield is ranked lower than
93% of the 163 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.83 vs. AAN: 0.31 )
AAN' s 10-Year Dividend Yield Range
Min: 0.05   Max: 0.43
Current: 0.31

0.05
0.43
Dividend Payout 0.07
AAN's Dividend Payout is ranked higher than
98% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.13 vs. AAN: 0.07 )
AAN' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.18
Current: 0.07

0.02
0.18
Dividend growth (3y) 13.70
AAN's Dividend growth (3y) is ranked higher than
80% of the 107 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.80 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) 0.53
AAN's Yield on cost (5-Year) is ranked lower than
88% of the 165 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.26 vs. AAN: 0.53 )
AAN' s 10-Year Yield on cost (5-Year) Range
Min: 0.09   Max: 0.76
Current: 0.53

0.09
0.76
Share Buyback Rate 2.40
AAN's Share Buyback Rate is ranked higher than
92% of the 152 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: -0.90 vs. AAN: 2.40 )
AAN' s 10-Year Share Buyback Rate Range
Min: 21   Max: -31.9
Current: 2.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.40
AAN's Price/Tangible Book is ranked lower than
61% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.70 vs. AAN: 5.40 )
AAN' s 10-Year Price/Tangible Book Range
Min: 0.5   Max: 7.42
Current: 5.4

0.5
7.42
Price/DCF (Projected) 0.90
AAN's Price/DCF (Projected) is ranked higher than
93% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9999.00 vs. AAN: 0.90 )
AAN' s 10-Year Price/DCF (Projected) Range
Min: 1   Max: 6.51
Current: 0.9

1
6.51
Price/Median PS Value 0.90
AAN's Price/Median PS Value is ranked higher than
85% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.30 vs. AAN: 0.90 )
AAN' s 10-Year Price/Median PS Value Range
Min: 0.19   Max: 1.25
Current: 0.9

0.19
1.25
Price/Peter Lynch Fair Value 2.30
AAN's Price/Peter Lynch Fair Value is ranked higher than
86% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9999.00 vs. AAN: 2.30 )
AAN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.44   Max: 7.6
Current: 2.3

0.44
7.6
Price/Graham Number 2.20
AAN's Price/Graham Number is ranked higher than
54% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.00 vs. AAN: 2.20 )
AAN' s 10-Year Price/Graham Number Range
Min: 0.36   Max: 3.06
Current: 2.2

0.36
3.06
Earnings Yield (Greenblatt) 8.80
AAN's Earnings Yield (Greenblatt) is ranked higher than
78% of the 232 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 6.20 vs. AAN: 8.80 )
AAN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.6   Max: 16.7
Current: 8.8

4.6
16.7
Forward Rate of Return (Yacktman) 13.16
AAN's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 170 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 4.00 vs. AAN: 13.16 )
AAN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -5.7   Max: 17.5
Current: 13.16

-5.7
17.5

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.
» More Articles for AAN

Headlines

Articles On GuruFocus.com
Tom Gayner’s Top 5 New Portfolio Picks Aug 11 2014 
Diamond Hill Capital Comments on Aaron's Inc Jun 26 2014 
Can GameStop Adapt to New Challenges? Mar 27 2014 
Aaron’s Leases, You Should Buy Dec 19 2013 
17 Companies Compounding Shareholder's Wealth with Higher Dividends Nov 11 2013 
Steven Romick's Third Quarter 2013 Commentary Oct 28 2013 
FPA Capital Fund Third Quarter 2013 Investor Letter Oct 23 2013 
Consensus Stocks ‘A to Z’ - Second Quarter Action Aug 07 2013 
Scott Black's Top 5 Second Quarter Increases Jul 15 2013 
Aaron's Inc: Fundamental Stock Research Analysis Jul 20 2013 

More From Other Websites
AARON'S INC Financials Aug 15 2014
AARON'S INC Files SEC form 8-K, Other Events, Financial Statements and Exhibits Aug 13 2014
AARON'S INC Files SEC form 10-Q, Quarterly Report Aug 08 2014
Aaron's, Inc. Directors Declare Dividend Aug 06 2014
Aaron's, Inc. Directors Declare Dividend Aug 06 2014
Aaron's, Inc. Announces CEO Ron Allen's Retirement Aug 06 2014
AARON'S INC Files SEC form 8-K, Change in Directors or Principal Officers, Financial Statements and... Aug 06 2014
[$$] Aaron's CEO Ronald Allen to Retire Aug 06 2014
Aaron's, Inc. Announces CEO Ron Allen's Retirement Aug 06 2014
AARON'S INC Files SEC form 8-K, Change in Directors or Principal Officers, Financial Statements and... Aug 01 2014
Aaron's, Inc. Announces Gene Lockhart to Join Board of Directors Jul 31 2014
Aaron's, Inc. Announces Gene Lockhart to Join Board of Directors Jul 31 2014
Should You Get Rid of Aaron's (AAN) Now? Jul 31 2014
AARON'S INC Files SEC form 8-K, Change in Directors or Principal Officers, Financial Statements and... Jul 30 2014
Aaron's (AAN) Slumps on Weak Q2 Earnings, Cost Savings Ahead Jul 28 2014
Aaron's, Inc. Reports Second Quarter Results Jul 25 2014
Why Aaron���s (AAN) Stock Is Lower Today Jul 25 2014
Aaron's Inc Earnings Call scheduled for 10:00 am ET today Jul 25 2014
AARON'S INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements... Jul 25 2014
Q2 2014 Aaron's Inc. Earnings Release - Before Market Open Jul 25 2014

Personalized Checklist








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User Comments

Drossi@linkedin
ReplyDrossi@linkedin - 4 months ago
I can't understand why investors are valuing it so much higher than RCII...
Drossi@linkedin
ReplyDrossi@linkedin - 4 months ago
How are you arriving at these estimates!?

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