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The Aarons Co (The Aarons Co) Earnings Yield (Joel Greenblatt) % : 1.49% (As of Dec. 2023)


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What is The Aarons Co Earnings Yield (Joel Greenblatt) %?

The Aarons Co's Enterprise Value for the quarter that ended in Dec. 2023 was $968 Mil. The Aarons Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $14 Mil. The Aarons Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 1.49%.

The historical rank and industry rank for The Aarons Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

AAN' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -50.96   Med: 1.93   Max: 15.9
Current: 1.69

During the past 7 years, the highest Earnings Yield (Joel Greenblatt) of The Aarons Co was 15.90%. The lowest was -50.96%. And the median was 1.93%.

AAN's Earnings Yield (Joel Greenblatt) % is ranked worse than
69.79% of 1109 companies
in the Business Services industry
Industry Median: 5.63 vs AAN: 1.69

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. The Aarons Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


The Aarons Co Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for The Aarons Co's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Aarons Co Earnings Yield (Joel Greenblatt) % Chart

The Aarons Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial - -45.45 13.89 -0.45 1.49

The Aarons Co Quarterly Data
Dec17 Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.45 -2.15 0.19 1.63 1.49

Competitive Comparison of The Aarons Co's Earnings Yield (Joel Greenblatt) %

For the Rental & Leasing Services subindustry, The Aarons Co's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Aarons Co's Earnings Yield (Joel Greenblatt) % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, The Aarons Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where The Aarons Co's Earnings Yield (Joel Greenblatt) % falls into.



The Aarons Co Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

The Aarons Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=14.454/967.952032
=1.49 %

The Aarons Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $14 Mil.



The Aarons Co  (NYSE:AAN) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


The Aarons Co Earnings Yield (Joel Greenblatt) % Related Terms

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The Aarons Co (The Aarons Co) Business Description

Industry
Traded in Other Exchanges
N/A
Address
400 Galleria Parkway SE, Suite 300, Atlanta, GA, USA, 30339-3182
The Aarons Co Inc is a specialty retailer which has developed a unique lease-to-own model. It serves the customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories at the best deal with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
Executives
Rachel G George officer: EVP, Gen Counsel/Corp Sec 400 GALLERIA PKWY SE, SUITE 300, ATLANTA GA 30339
Stephen W Olsen officer: President 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Douglas A Lindsay director, officer: Chief Executive Officer 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Wangdali Bacdayan director 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Douglass L Noe officer: VP, Corporate Controller 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Kristine Kay Malkoski director 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Russell Falkenstein officer: EVP, COO, Lease-to-Own 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
John W Robinson director 309 E PACES FERRY RD, SUITE 1100, ATLANTA GA 30505
Harris Hubert L. Jr. director 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Marvonia P Moore director 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Kelly Hefner Barrett director 4630 WYNMEADE PARK, MARIETTA GA 30067
Timothy A Johnson director
Laura N Bailey director 400 GALLERIA PARKWAY SE, SUITE 300, ATLANTA GA 30339
Sinclair Robert P Jr officer: Corporate Controller and CAO 309 E. PACES FERRY RD N.E., ATLANTA GA 30305-2377
Aaron's Holdings Company, Inc. 10 percent owner 256 W. DATA DRIVE, DRAPER UT 84020