AARON'S CO INC/THE (AAN) Stock Fundamental Analysis
USA - NYSE:AAN - US00258W1080 - Common Stock
10.09 USD
+0.1 (+1%)
10.09 USD
0 (0%)
Overall AAN gets a fundamental rating of 3 out of 10. We evaluated AAN against 121 industry peers in the Specialty Retail industry. AAN has a bad profitability rating. Also its financial health evaluation is rather negative. AAN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AAN has reported negative net income.
In the past year AAN had a positive cash flow from operations.
In multiple years AAN reported negative net income over the last 5 years.
AAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAN has a Return On Assets (-2.40%) which is comparable to the rest of the industry.
AAN has a Return On Equity (-6.47%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.4% | ||
| ROE | -6.47% | ||
| ROIC | N/A |
ROA(3y)2.5%
ROA(5y)-2.14%
ROE(3y)4.98%
ROE(5y)-3.82%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of AAN has declined.
AAN's Operating Margin has declined in the last couple of years.
The Gross Margin of AAN (52.53%) is better than 80.33% of its industry peers.
In the last couple of years the Gross Margin of AAN has declined.
AAN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 52.53% |
OM growth 3Y-44.69%
OM growth 5Y-28.43%
PM growth 3YN/A
PM growth 5Y-45.82%
GM growth 3Y-5.74%
GM growth 5Y-2.88%
2. Health
2.1 Basic Checks
AAN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AAN has less shares outstanding
The number of shares outstanding for AAN has been reduced compared to 5 years ago.
AAN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that AAN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.96, AAN is doing worse than 77.87% of the companies in the same industry.
AAN has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.31, AAN perfoms like the industry average, outperforming 53.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACCN/A
WACC9.27%
2.3 Liquidity
AAN has a Current Ratio of 0.30. This is a bad value and indicates that AAN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.30, AAN is doing worse than 96.72% of the companies in the same industry.
AAN has a Quick Ratio of 0.30. This is a bad value and indicates that AAN is not financially healthy enough and could expect problems in meeting its short term obligations.
AAN has a worse Quick ratio (0.19) than 89.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
AAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -132.41%.
AAN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.94% yearly.
The Revenue has decreased by -8.73% in the past year.
AAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.58% yearly.
EPS 1Y (TTM)-132.41%
EPS 3YN/A
EPS 5Y-42.94%
EPS Q2Q%-117.95%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y7.24%
Revenue growth 5Y3.58%
Sales Q2Q%-5.14%
3.2 Future
Based on estimates for the next years, AAN will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.60% on average per year.
AAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.34% yearly.
EPS Next Y-102.06%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
EPS Next 5Y-20.6%
Revenue Next Year-3.08%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.99%
Revenue Next 5Y1.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AAN. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 17.23, which indicates a rather expensive current valuation of AAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAN indicates a somewhat cheap valuation: AAN is cheaper than 63.93% of the companies listed in the same industry.
AAN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than AAN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 0.98 |
4.3 Compensation for Growth
A cheap valuation may be justified as AAN's earnings are expected to decrease with -13.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
5. Dividend
5.1 Amount
AAN has a Yearly Dividend Yield of 4.96%, which is a nice return.
Compared to an average industry Dividend Yield of 5.23, AAN pays a better dividend. On top of this AAN pays more dividend than 94.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, AAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
5.2 History
AAN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AAN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-36.48%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
10.09
+0.1 (+1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.86%
Inst Owner Change0%
Ins Owners3.68%
Ins Owner Change0%
Market Cap318.34M
Revenue(TTM)2.07B
Net Income(TTM)-42539000
Analysts51.43
Price Target10.28 (1.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP-36.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-185.44%
Min EPS beat(2)-266.32%
Max EPS beat(2)-104.57%
EPS beat(4)0
Avg EPS beat(4)-336.25%
Min EPS beat(4)-887.96%
Max EPS beat(4)-86.14%
EPS beat(8)4
Avg EPS beat(8)-44.8%
EPS beat(12)8
Avg EPS beat(12)-17.65%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.4%
Max Revenue beat(2)-1.98%
Revenue beat(4)0
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-3.4%
Max Revenue beat(4)-1.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.86%
Revenue beat(12)3
Avg Revenue beat(12)-0.86%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)-14.72%
EPS NQ rev (3m)-29.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-113.14%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.23 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 5.39 | ||
| P/B | 0.48 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 0.98 |
EPS(TTM)-0.47
EYN/A
EPS(NY)0.59
Fwd EY5.8%
FCF(TTM)-1.08
FCFYN/A
OCF(TTM)1.87
OCFY18.57%
SpS65.6
BVpS20.85
TBVpS15.81
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.4% | ||
| ROE | -6.47% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 52.53% | ||
| FCFM | N/A |
ROA(3y)2.5%
ROA(5y)-2.14%
ROE(3y)4.98%
ROE(5y)-3.82%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.13%
ROCE(5y)9.77%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-44.69%
OM growth 5Y-28.43%
PM growth 3YN/A
PM growth 5Y-45.82%
GM growth 3Y-5.74%
GM growth 5Y-2.88%
F-Score4
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 17.59% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 11.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 0.96 |
F-Score4
WACC9.27%
ROIC/WACCN/A
Cap/Depr(3y)17.01%
Cap/Depr(5y)15.28%
Cap/Sales(3y)4.75%
Cap/Sales(5y)4.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-132.41%
EPS 3YN/A
EPS 5Y-42.94%
EPS Q2Q%-117.95%
EPS Next Y-102.06%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
EPS Next 5Y-20.6%
Revenue 1Y (TTM)-8.73%
Revenue growth 3Y7.24%
Revenue growth 5Y3.58%
Sales Q2Q%-5.14%
Revenue Next Year-3.08%
Revenue Next 2Y-0.18%
Revenue Next 3Y0.99%
Revenue Next 5Y1.34%
EBIT growth 1Y-143.99%
EBIT growth 3Y-40.69%
EBIT growth 5Y-25.86%
EBIT Next Year380.41%
EBIT Next 3Y83.29%
EBIT Next 5Y47.46%
FCF growth 1Y-220.09%
FCF growth 3Y-33.07%
FCF growth 5Y-6.35%
OCF growth 1Y-55.53%
OCF growth 3Y-20.26%
OCF growth 5Y-0.66%
AARON'S CO INC/THE / AAN FAQ
Can you provide the ChartMill fundamental rating for AARON'S CO INC/THE?
ChartMill assigns a fundamental rating of 3 / 10 to AAN.
Can you provide the valuation status for AARON'S CO INC/THE?
ChartMill assigns a valuation rating of 2 / 10 to AARON'S CO INC/THE (AAN). This can be considered as Overvalued.
What is the profitability of AAN stock?
AARON'S CO INC/THE (AAN) has a profitability rating of 3 / 10.
Can you provide the financial health for AAN stock?
The financial health rating of AARON'S CO INC/THE (AAN) is 2 / 10.
What is the earnings growth outlook for AARON'S CO INC/THE?
The Earnings per Share (EPS) of AARON'S CO INC/THE (AAN) is expected to decline by -102.06% in the next year.