Aaron's Company, Inc.

www.aarons.com

Earnings Score
Moat Score
Safety Score

Market Cap $309.45M
PE -7
Debt $215.76M
Cash $35.79M
EV $489.43M
FCF -$33.98M

Earnings

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Sales & Net Margins

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Earnings	-$42.58M
EBIT	-$36.17M
ROE	-6%
ROA	-2%
FCF	-$33.98M
Equity	$657.69M
Growth Stability	1
PE	-7.27
PEG	0.65
PB	0.47
P/FCF	-9.11
P/S	0.15
Price/Cash	0.12
Debt/Equity	0.33
Debt/FCF	-6.35
Net Margins	-3%
Gross Margins	53%
Op. Margins	-2%
Earnings CAGR	-8%
Sales Growth YoY	-5%
Sales Growth QoQ	-2%
Sales CAGR	3%
FCF CAGR	-21%
Equity CAGR	-2%
Earnings Stability	-0.55
Earnings Growth YoY	-283%

Earnings Growth QoQ	-16%
Earnings CAGR 5Y	-11%
Sales CAGR 5Y	3%
FCF CAGR 5Y	-26%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	10%
Equity CAGR 3Y	-3%
Market Cap	$309.45M
Revenue	$2.07B
Dividend Yield	5%
Payout Ratio	-38%
Assets	$1.77B
Total Debt	$215.76M
Cash	$35.79M
Shares Outstanding	30.67M
EV	489.43M
Earnings Score	6%
Moat Score	12%
Safety Score	68%
Final Score	29%
Shares Growth 3y	-2%
Equity Growth QoQ	-2%
Equity Growth YoY	-7%

Assets & ROA

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Stockholders Equity & ROE

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The Aarons Co Inc is a speciality 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 best deal with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population.

SEC Filings

Direct access to Aaron's Company, Inc. (AAN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Aaron's Company, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Aaron's Company, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -8%

Stability -55%

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Aaron's Company, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Aaron's Company, Inc..

Years

Calculation mode

= -$96M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$34M	-$27M	-$21M	-$17M	-$13M	-$10M	-$8.3M	-$6.5M	-$5.2M	-$4.1M	-$3.2M	-$32M
DCF		-$24M	-$18M	-$13M	-$9M	-$6.5M	-$4.7M	-$3.4M	-$2.4M	-$1.7M	-$1.2M	-$12M
Value	-$96M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	2%	-15%	6%	-0%	0%	-3%
ROA	-	3%	-29%	10%	-0%	1%	-2%
ROE	-	3%	-37%	15%	-1%	0%	-6%

Bad Net Margins (-2.57%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.22	0.01	0.46	4.26	2.33	-6.35
Debt over Equity	-	0.41	0	0.03	0.38	0.29	0.33
Growth Stability	-	-	-	-	-	-	1

Good Debt/FCF ratio (-6.35)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.33)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-1%	-3%	6%	22%	-5%	3%
Earnings YoY growth	-	-45%	-1K%	-141%	-105%	-153%	-11%
Equity YoY growth	-	7%	-15%	1%	-3%	-1%	-1%
FCF YoY growth	-	-11%	170%	-85%	44%	38%	-26%