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GuruFocus Financial Strength Rank measures how strong a companyย’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 : 6/10

vs
industry
vs
history
Cash to Debt 0.089
RCII's Cash to Debt is ranked lower than
69% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.26 vs. RCII: 0.089 )
RCII' s 10-Year Cash to Debt Range
Min: 0.03   Max: 0.21
Current: 0.09

0.03
0.21
Equity to Asset 0.041
RCII's Equity to Asset is ranked lower than
90% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.35 vs. RCII: 0.041 )
RCII' s 10-Year Equity to Asset Range
Min: -0.19   Max: 0.06
Current: 0.04

-0.19
0.06
Interest Coverage 10.2
RCII's Interest Coverage is ranked lower than
57% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 20.00 vs. RCII: 10.2 )
RCII' s 10-Year Interest Coverage Range
Min: 2   Max: 41
Current: 10.2

2
41
F-Score: 7
Z-Score: 3.28
M-Score: -3.15
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 (%) 10.30
RCII's Operating margin (%) is ranked higher than
58% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.50 vs. RCII: 10.30 )
RCII' s 10-Year Operating margin (%) Range
Min: 7   Max: 81.5
Current: 10.3

7
81.5
Net-margin (%) 6
RCII's Net-margin (%) is ranked higher than
56% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 4.80 vs. RCII: 6 )
RCII' s 10-Year Net-margin (%) Range
Min: 2.6   Max: 8.6
Current: 6

2.6
8.6
ROE (%) 12.5
RCII's ROE (%) is ranked higher than
61% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.40 vs. RCII: 12.5 )
RCII' s 10-Year ROE (%) Range
Min: 8.1   Max: 22.8
Current: 12.5

8.1
22.8
ROA (%) 6.4
RCII's ROA (%) is ranked higher than
75% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.20 vs. RCII: 6.4 )
RCII' s 10-Year ROA (%) Range
Min: 2.9   Max: 10.7
Current: 6.4

2.9
10.7
ROC (Joel Greenblatt) (%) 42.80
RCII's ROC (Joel Greenblatt) (%) is ranked higher than
90% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 11.60 vs. RCII: 42.80 )
RCII' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 25.9   Max: 329.1
Current: 42.8

25.9
329.1
Revenue Growth (%) 5.8
RCII's Revenue Growth (%) is ranked higher than
79% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.10 vs. RCII: 5.8 )
RCII' s 10-Year Revenue Growth (%) Range
Min: -0.3   Max: 9.8
Current: 5.8

-0.3
9.8
EBITDA Growth (%) 6.6
RCII's EBITDA Growth (%) is ranked higher than
83% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.10 vs. RCII: 6.6 )
RCII' s 10-Year EBITDA Growth (%) Range
Min: -20.3   Max: 35.8
Current: 6.6

-20.3
35.8
EPS Growth (%) 5.2
RCII's EPS Growth (%) is ranked higher than
89% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.50 vs. RCII: 5.2 )
RCII' s 10-Year EPS Growth (%) Range
Min: -13.2   Max: 28.5
Current: 5.2

-13.2
28.5
ยป RCII's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2012

RCII Guru Trades in Q2 2012

Pioneer Investments 1,052,110 sh (+283.84%)
HOTCHKIS & WILEY 945,370 sh (+41.82%)
Chuck Royce 26,400 sh (+34.69%)
Scott Black 197,792 sh (+21.5%)
James Barrow 1,904,217 sh (-3.25%)
Richard Pzena 507,024 sh (-7.58%)
Charles Brandes 12,780 sh (-17.44%)
Steven Cohen 188,164 sh (-51.79%)
Jim Simons 44,710 sh (-81.94%)
» More
Q3 2012

RCII Guru Trades in Q3 2012

HOTCHKIS & WILEY 1,186,870 sh (+25.55%)
Scott Black 235,232 sh (+18.93%)
Jim Simons Sold Out
Pioneer Investments 1,050,320 sh (-0.17%)
Richard Pzena 505,129 sh (-0.37%)
James Barrow 1,891,257 sh (-0.68%)
Chuck Royce 25,200 sh (-4.55%)
Charles Brandes 12,160 sh (-4.85%)
Steven Cohen 31,832 sh (-83.08%)
» More
Q4 2012

RCII Guru Trades in Q4 2012

Steven Cohen 41,407 sh (+30.08%)
Pioneer Investments 1,164,815 sh (+10.9%)
James Barrow 2,020,832 sh (+6.85%)
HOTCHKIS & WILEY 1,254,170 sh (+5.67%)
Jeremy Grantham 12,200 sh (unchged)
Richard Pzena 504,987 sh (-0.03%)
Scott Black 233,984 sh (-0.53%)
Charles Brandes 12,050 sh (-0.9%)
Chuck Royce 24,400 sh (-3.17%)
» More
Q1 2013

RCII Guru Trades in Q1 2013

Jim Simons 251,410 sh (New)
Manning & Napier Advisors, Inc 199,020 sh (New)
David Dreman 85,400 sh (New)
Chuck Royce 71,800 sh (+194.26%)
HOTCHKIS & WILEY 2,124,970 sh (+69.43%)
James Barrow 2,267,667 sh (+12.21%)
Charles Brandes 12,935 sh (+7.34%)
Jeremy Grantham 12,696 sh (+4.07%)
Richard Pzena 511,322 sh (+1.25%)
Steven Cohen Sold Out
Scott Black 232,783 sh (-0.51%)
Pioneer Investments 606,255 sh (-47.95%)
» More
» Details

Insider Trades

Latest Guru Trades with RCII

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Dreman 2013-03-31 New Buy0.08%$33.44 - $38.12 $ 35.37-2%85400
Scott Black 2012-09-30 Add 18.93%0.19%$32.74 - $37.1 $ 35.370%235232
Scott Black 2012-06-30 Add 21.5%0.18%$32.43 - $38.14 $ 35.372%197792
James Barrow 2011-12-31 Add 41.47%0.05%$26.03 - $38.04 $ 35.374%1953327
Charles Brandes 2011-12-31 Reduce -33.74%$26.03 - $38.04 $ 35.374%16920
James Barrow 2011-09-30 New Buy0.09%$22.13 - $32.01 $ 35.3728%1380717
Charles Brandes 2011-03-31 Reduce -33.65%0.01%$28.93 - $35.2 $ 35.3710%26805
Charles Brandes 2010-09-30 Add 35.27%$19.82 - $23.29 $ 35.3765%37835
Premium More recent guru trades are included for Premium Members only!!

Top Ranked Articles about Rent-A-Center, Inc.

Weekly CEO Sells Highlight: Aspen Technology, Inc, Rent-A-Center Inc, Illinois Tool Works Inc, and Healthways, Inc
According to GuruFocus Insider Data, these are the largest CEO sales during the past week: Aspen Technology, Inc, Rent-A-Center Inc, Illinois Tool Works Inc, and Healthways, Inc Aspen Technology, Inc. (AZPN): President & CEO Mark Fusco sold 269,808 Shares Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 11.60
RCII's P/E(ttm) is ranked higher than
84% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 15.70 vs. RCII: 11.60 )
RCII' s 10-Year P/E(ttm) Range
Min: 7.03   Max: 28.03
Current: 11.6

7.03
28.03
P/B 1.40
RCII's P/B is ranked lower than
57% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.27 vs. RCII: 1.40 )
RCII' s 10-Year P/B Range
Min: 0.76   Max: 4.68
Current: 1.4

0.76
4.68
P/S 0.70
RCII's P/S is ranked higher than
56% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.89 vs. RCII: 0.70 )
RCII' s 10-Year P/S Range
Min: 0.29   Max: 1.39
Current: 0.7

0.29
1.39
PFCF 20.90
RCII's PFCF is ranked lower than
51% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 10.00 vs. RCII: 20.90 )
RCII' s 10-Year PFCF Range
Min: 3.09   Max: 85.67
Current: 20.9

3.09
85.67
EV-to-EBIT 8.5
RCII's EV-to-EBIT is ranked higher than
89% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 16.80 vs. RCII: 8.5 )
RCII' s 10-Year EV-to-EBIT Range
Min: 1.4   Max: 16.7
Current: 8.5

1.4
16.7
PEG 2
RCII's PEG is ranked higher than
97% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.20 vs. RCII: 2 )
RCII' s 10-Year PEG Range
Min: 0.4   Max: 11.72
Current: 2

0.4
11.72
Shiller P/E 13.6
RCII's Shiller P/E is ranked higher than
83% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 12.55 vs. RCII: 13.6 )
RCII' s 10-Year Shiller P/E Range
Min: 6.56   Max: 23.93
Current: 13.6

6.56
23.93

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.10
RCII's Dividend Yield is ranked higher than
64% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.31 vs. RCII: 2.10 )
RCII' s 10-Year Dividend Yield Range
Min: 0.21   Max: 2.17
Current: 2.1

0.21
2.17
Dividend Payout 0.2
RCII's Dividend Payout is ranked higher than
96% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.56 vs. RCII: 0.2 )
RCII' s 10-Year Dividend Payout Range
Min: 0.07   Max: 0.22
Current: 0.2

0.07
0.22
Yield on cost (5-Year) 2.10
RCII's Yield on cost (5-Year) is ranked higher than
65% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.24 vs. RCII: 2.10 )
RCII' s 10-Year Yield on cost (5-Year) Range
Min: 0.21   Max: 2.17
Current: 2.1

0.21
2.17
Share Buyback Rate 2.8
RCII's Share Buyback Rate is ranked higher than
96% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: -2.60 vs. RCII: 2.8 )
RCII' s 10-Year Share Buyback Rate Range
Min: 5.2   Max: -4.7
Current: 2.8

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 18.2
RCII's Price/Net Current Asset Value is ranked higher than
76% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.00 vs. RCII: 18.2 )
RCII' s 10-Year Price/Net Current Asset Value Range
Min: 2.8   Max: 121
Current: 18.2

2.8
121
Price/Tangible Book 17.6
RCII's Price/Tangible Book is ranked higher than
98% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.80 vs. RCII: 17.6 )
RCII' s 10-Year Price/Tangible Book Range
Min: 17.4   Max: 284.6
Current: 17.6

17.4
284.6
Price/DCF (Projected) 0.7
RCII's Price/DCF (Projected) is ranked higher than
87% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.05 vs. RCII: 0.7 )
RCII' s 10-Year Price/DCF (Projected) Range
Min: 0.3   Max: 22.2
Current: 0.7

0.3
22.2
Price/Median PS Value 0.9
RCII's Price/Median PS Value is ranked higher than
71% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.00 vs. RCII: 0.9 )
RCII' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 1.7
Current: 0.9

0.5
1.7
Price/Peter Lynch Fair Value 2.1
RCII's Price/Peter Lynch Fair Value is ranked lower than
75% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.75 vs. RCII: 2.1 )
RCII' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 2.1
Current: 2.1

0.6
2.1
Price/Graham Number 2.9
RCII's Price/Graham Number is ranked higher than
96% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.90 vs. RCII: 2.9 )
RCII' s 10-Year Price/Graham Number Range
Min: 2.8   Max: 13
Current: 2.9

2.8
13
Earnings Yield (Greenblatt) 11.80
RCII's Earnings Yield (Greenblatt) is ranked higher than
89% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 6.65 vs. RCII: 11.80 )
RCII' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6   Max: 69.6
Current: 11.8

6
69.6
Forward Rate of Return (Yacktman) 13.12
RCII's Forward Rate of Return (Yacktman) is ranked higher than
94% of the 135 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.41 vs. RCII: 13.12 )
RCII' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -2.8   Max: 38.3
Current: 13.12

-2.8
38.3

Business Description

Rent-A-Center, Inc. was incorporated in Delaware in 1986. The Company is the operator in the United States rent-to-own industry. Its main operating segment consists of leasing household durable goods to customers on a rent-to-own basis. It also offers merchandise on an installment sales basis in certain of its stores. At December 31, 2011, the company operated 2,994 company-owned stores nationwide and in Puerto Rico, including 39 retail instalment sales stores under the names "Get It Now" and "Home Choice." The Company also offers an array of financial services in certain of its existing stores under the names 'RAC Financial Services' and 'Cash AdvantEdge.' ColorTyme, Inc., an indirect wholly-owned subsidiary of Rent-A-Center, is a nationwide franchisor of rent-to-own stores. ColorTyme is its nationwide franchisor of rent-to-own stores. At December 31, 2011, ColorTyme franchised 216 stores in 33 states. ColorTyme's main source of revenue is the sale of rental merchandise to its franchisees, who in turn offer the merchandise to the general public for rent or purchase under a rent-to-own program. The Company stores generally offer high quality durable products such as major consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that generally allow the customer to obtain ownership of the merchandise at the conclusion of an agreed-upon rental period. The Company's main suppliers are Whirlpool and Ashley. It promotes the products and services in its stores through television and radio commercials, print advertisements, Internet sites, direct response and store signage, all of which are designed to increase its name recognition among its customers and potential customers. The Company's financial services business is subject to regulation and supervision primarily at the state and federal levels. It intends to offer its financial services products only in those jurisdictions with favorable regulatory environments.
Company Website
SEC Reports
Industry: Rental & Leasing Services
Compare:BOX, TAL, HTZ, URI, AYR

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