AARON'S CO INC/THE (AAN) Fundamental Analysis & Valuation

NYSE:AAN • US00258W1080

Current stock price

10.09 USD
+0.1 (+1%)
At close:
10.09 USD
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This AAN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. AAN Profitability Analysis

1.1 Basic Checks

  • In the past year AAN has reported negative net income.
  • AAN had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: AAN reported negative net income in multiple years.
  • Each year in the past 5 years AAN had a positive operating cash flow.
AAN Yearly Net Income VS EBIT VS OCF VS FCFAAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

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 RankSector 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
AAN Yearly ROA, ROE, ROICAAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

  • In the last couple of years the Profit Margin of AAN has declined.
  • In the last couple of years the Operating Margin of AAN has declined.
  • AAN's Gross Margin of 52.53% is amongst the best of the industry. AAN outperforms 80.33% of its industry peers.
  • AAN's Gross Margin has declined in the last couple of years.
  • AAN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
AAN Yearly Profit, Operating, Gross MarginsAAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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2

2. AAN Health Analysis

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
  • Compared to 1 year ago, AAN has an improved debt to assets ratio.
AAN Yearly Shares OutstandingAAN Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 10M 20M 30M
AAN Yearly Total Debt VS Total AssetsAAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

  • AAN has an Altman-Z score of 0.96. This is a bad value and indicates that AAN is not financially healthy and even has some risk of bankruptcy.
  • AAN's Altman-Z score of 0.96 is on the low side compared to the rest of the industry. AAN is outperformed by 77.87% of its industry peers.
  • AAN has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
  • AAN's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. AAN outperforms 53.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF N/A
Altman-Z 0.96
ROIC/WACCN/A
WACC9.27%
AAN Yearly LT Debt VS Equity VS FCFAAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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.
  • A Quick Ratio of 0.19 indicates that AAN may have some problems paying its short term obligations.
  • The Quick ratio of AAN (0.19) is worse than 89.34% of its industry peers.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.19
AAN Yearly Current Assets VS Current LiabilitesAAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. AAN Growth Analysis

3.1 Past

  • The earnings per share for AAN have decreased strongly by -132.41% in the last year.
  • The earnings per share for AAN have been decreasing by -42.94% on average. This is quite bad
  • The Revenue has decreased by -8.73% in the past year.
  • Measured over the past years, AAN shows a small growth in Revenue. The Revenue has been growing by 3.58% on average per year.
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.
  • Based on estimates for the next years, AAN will show a small growth in Revenue. The Revenue will grow by 1.34% on average per year.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AAN Yearly Revenue VS EstimatesAAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
AAN Yearly EPS VS EstimatesAAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3

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2

4. AAN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for AAN. In the last year negative earnings were reported.
  • AAN is valuated rather expensively with a Price/Forward Earnings ratio of 17.23.
  • Based on the Price/Forward Earnings ratio, AAN is valued a bit cheaper than the industry average as 63.93% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. AAN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 17.23
AAN Price Earnings VS Forward Price EarningsAAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AAN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 0.98
AAN Per share dataAAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • AAN's earnings are expected to decrease with -13.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AAN Dividend Analysis

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 2.79, AAN pays a better dividend. On top of this AAN pays more dividend than 94.26% of the companies listed in the same industry.
  • AAN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 4.96%

5.2 History

  • AAN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
AAN Yearly Dividends per shareAAN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • The earnings of AAN are negative and hence is the payout ratio. AAN will probably not be able to sustain this dividend level.
DP-36.48%
EPS Next 2Y-14.44%
EPS Next 3Y-13.93%
AAN Yearly Income VS Free CF VS DividendAAN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

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AAN Fundamentals: All Metrics, Ratios and Statistics

AARON'S CO INC/THE

NYSE:AAN (10/3/2024, 8:04:00 PM)

After market: 10.09 0 (0%)

10.09

+0.1 (+1%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)08-05
Earnings (Next)10-21
Inst Owners87.86%
Inst Owner Change0%
Ins Owners3.68%
Ins Owner Change0%
Market Cap318.34M
Revenue(TTM)2.07B
Net Income(TTM)-42.54M
Analysts51.43
Price Target10.28 (1.88%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for AARON'S CO INC/THE?

ChartMill assigns a fundamental rating of 3 / 10 to AAN.


What is the valuation status of AARON'S CO INC/THE (AAN) stock?

ChartMill assigns a valuation rating of 2 / 10 to AARON'S CO INC/THE (AAN). This can be considered as Overvalued.


Can you provide the profitability details for AARON'S CO INC/THE?

AARON'S CO INC/THE (AAN) has a profitability rating of 3 / 10.


How financially healthy is AARON'S CO INC/THE?

The financial health rating of AARON'S CO INC/THE (AAN) is 2 / 10.


How sustainable is the dividend of AARON'S CO INC/THE (AAN) stock?

The dividend rating of AARON'S CO INC/THE (AAN) is 5 / 10 and the dividend payout ratio is -36.48%.