The Aarons Co (The Aarons Co) GF Value Rank : 4 (As of May. 01, 2024)

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What is The Aarons Co GF Value Rank?

The Aarons Co has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of The Aarons Co's GF Value Rank

For the Rental & Leasing Services subindustry, The Aarons Co's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, The Aarons Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where The Aarons Co's GF Value Rank falls into.

The Aarons Co GF Value Rank Related Terms

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The Aarons Co (The Aarons Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » The Aarons Co Inc (NYSE:AAN) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

400 Galleria Parkway SE, Suite 300, Atlanta, GA, USA, 30339-3182

Website

https://www.aarons.com

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