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Intrinsic value of Rent-A-Center, Inc. (RCII)

Previous Close$28.44
Intrinsic Value
Upside potential
Previous Close
$28.44
Use floor (the cash flow based valuation has rendered a result, which is lower than an estimated minimum value derived from the company’s balance sheet analysis)

VALUATION INPUT DATA (original, your and others' valuations)

ParameterOrig.Your
Date of valuation (DoV)  
Intrinsic value (IV) at DoV, $/sh  
IV at current val. algorithm, $/sh31.56 

The original valuation is based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-03-31.

Registered users can save their valuation input data

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

NOTE: The bar chart shows historic and forecasted yearly revenue growth rates. Its purpose is to help you in determining what initial revenue rate you want to base your stock valuation on. Please make sure that you are confident in the value you select - for most stocks it is by far the most important parameter in valuation.

Company description

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. The company operates through four segments: Rent-A-Center Business, Preferred Lease, Mexico, and Franchising. It offers consumer electronics, computers, tablets, smartphones, furniture and accessories, appliances, wheels and tires, tools, handbags, jewelry, and other accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks located within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; lease-to-own and franchised lease-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names; and rentacenter.com, an e-commerce platform. As of December 31, 2019, the company owned and operated approximately 1,973 stores in the United States and Puerto Rico, including 44 retail installment sales stores; 998 Preferred Lease staffed locations in 41 states and Puerto Rico; and 123 stores in Mexico, as well as franchised 372 lease-to-own stores in 33 states. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2021(a)2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046

INCOME STATEMENT

Revenue growth rate, %62.9NaN
Revenue, $4583NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m4302NaN
Operating income, $m281NaN
EBITDA, $m451NaN
Interest expense (income), $mNaN
Earnings before tax, $m194NaN
Tax expense, $m59NaN
Net income, $m135NaN

BALANCE SHEET

Cash and short-term investments, $m108NaN
Total assets, $m2993NaN
Adjusted assets (=assets-cash), $m2885NaN
Average production assets, $m909NaN
Working capital, $m997NaN
Total debt, $m1867NaN
Total liabilities, $m2480NaN
Total equity, $m513NaN
Debt-to-equity ratio3.639NaN
Adjusted equity ratio0.180NaN

CASH FLOW

Net income, $m135NaN
Depreciation, amort., depletion, $m170NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m392NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-62NaN
Free cash flow, $m454NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m997
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
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