NASDAQ:RCII
$21.70
(2/9 2:56PM)
+0.4%
| Open | $21.89 |
Mkt Cap | $1.4 Billion |
| High | $21.91 |
52Wk High | $23.14 |
| Low | $21.38 |
52Wk Low | $16.25 |
| Volume | 477,526 |
Avg Vol 10D | 1.1 Million |
Ockham's Rating/Recommendation Summary
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RCII Revenue
As a value investing shop, we are interested in seeing how RCII's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 2.11x and the low end of the range at 0.93x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for RCII of 6.14x is significantly above its historical average. This places RCII at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 305% merely to return RCII to its historical average.
RCII Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of RCII, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for RCII, the current level of Cash Earnings compared to its historical levels helps identify where RCII is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 3.52 and a historical low Cash Earnings per share ratio of 1.78, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for RCII? From the Ockham perspective, we are looking specifically at RCII to see if the market is recognizing the huge disparity between RCII's past stock price to Cash Earnings ratio to today's levels. At a difference of 34% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at RCII. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
RCII Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As of the time of this report, our data provider does not have historical data for RCII. Therefore, we are not utilizing the dividends portion in our study. So, we do not know whether RCII currently pays a dividend at present or not, we have an "expected dividend" payment listed in key fundamentals but cannot varify it.
Rent-A-Center, Inc. (RCII) Discussed on CNBC's Squawk Box
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Not to know whether it's medicare reimbursements, whatever it is, but there it is, back up to 62. >> RENT-A-CENTER. I used that once. >> you did? >> you can rent to own. It was either RENT-A-CENTER or a >> what was -- >> I just got a couch, a table, and I think I bought my own tv. But I had a couch and table. You pay rent each month and you can end up owning this stuff or
“… think I bought my own tv. But I had a couch and table. You pay rent each month and you can end up owning this stuff or …”
Rent-A-Center, Inc. (RCII) Discussed on Fox Business's Bulls & Bears
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
>> where do you put money? >> in consumer directionary, but on the lower end. You need a couch, go to RENT A CENTER, corinthian center if you need new skills. The only place I wouldn't want to be is technology.
“… >> where do you put money? >> in consumer directionary, but on the lower end. You need a couch, go to RENT A CENTER, corinthian center if you need new skills. The only place I wouldn't want to be is technology. …”
Rent-A-Center, Inc. (RCII) Discussed on CNBC's Squawk On The Street
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Step into a walmart. Now they don't have a money step into a walmart and now if next thing you know is walmart has everything for less. That's not that bad. You're seeing a RENT-A-CENTER, auto zones, a lot of consumer discretionary companies that are going to do well into the future because people are getting used to them. >> it's going to stick for a
“… g to do well into the future because people are getting used to them. >> it's going to stick for a …”
Rent-A-Center, Inc. (RCII) Discussed on Fox Business's Countdown to the Closing Bell
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Ross is down 2 3/4% at the moment. Would you go to dollar stores, too? >> look at RENT-A-CENTER. If you can't get credit and you need a couch or you need an appliance, why not rent to own? There is something for a slow economy. Another tok that people don't even think about is
“… 't even think about is …”
Rent-A-Center, Inc. (RCII) Discussed on CNBC's Fast Money
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Move to the upside. If you were lucky enough to catch this move you have to take some off. There's the chart of it it. You have bed, bath and beyond and RENT-A-CENTER and mohawk carpeting and you have speeders into the home builders and that's why your seeing a little bit, not just home builder >> after an 11% surge, oil
“… eing a little bit, not just home builder >> after an 11% surge, oil …”
Rent-A-Center, Inc. (RCII) Discussed on CNBC's Closing Bell
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
We've been talking about dollar treerks family tree, walmart, biggest value. Big food seller, largest food retailer in the united states. Dylan, there are tons of RENT A CENTER, the consumer can't afford to go buy an appliance, you go and rent it. There's no question about it. They're just in the value space. >> very quickly, eric. Same question. >> I think if you're going to look at winners in the value
“… no question about it. They're just in the value space. >> very quickly, eric. Same question. >> I think if you're going to look at winners in the value …”
Rent-A-Center, Inc. (RCII) Discussed on CNBC's Street Signs
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Buy are not walmart and family >> look at ross. That stock is actually up today. The market is down 250. You can look at RENT-A-CENTER. If credit is not there and people still need an appliance or tv, you can rent to own. This low-end buying will be around, even as the recovery starts.
“… d, even as the recovery starts. …”
Rent-A-Center, Inc. (RCII) Discussed on CNBC's The Call
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Done, and here is a company that you can buy $1 of revenue for 50 cents, and I don't think this is a company -- >> this is an engineering play. You also like RENT-A-CENTER. Actually it's an economic play. If people don't have the money nor the credit to buy new furniture or refrigerators or appliances, rent-an-center is
“… uy new furniture or refrigerators or appliances, rent-an-center is …”
Rent-A-Center, Inc. (RCII) Discussed on Fox Business's Money For Breakfast
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Title pawns and other to take advantage of the fact that there are a lot of credit vacuums in low income communities around our country. Jenna: thank you very much for both of you appreciate the discussion on RENT A CENTER. We expect again the earnings tomorrow. Coming up, we will take a look at the one thing you should know.
“… morrow. Coming up, we will take a look at the one thing you should know. …”
Rent-A-Center, Inc. (RCII) Discussed on Fox Business's Money For Breakfast
Rent-A-Center, Inc. is in the news. Find out how this impacts RCII trading on Ockham Research.
Don't have access to credit and they are looking for a short-term solution to their problem many times and many customers end up owning it outright, but 80% of the customers for example at RENT A CENTER own these products for a short time. Jenna: arvind was a customer at sarah, again you stated investors have to look at this what else -- I mean it sounds
“… as a customer at sarah, again you stated investors have to look at this what else -- I mean it sounds …”