Rent-A-Center, Inc.: Company Profile and SWOT Analysis by ICDResearch

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									Rent-A-Center, Inc.

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Rent-A-Center, Inc.                                                       Financial Snapshot

                                                                          Operating Performance
Fast Facts
                                     5501 Headquaters Drive, Plano,       The company reported revenues of US$2,731.63
Headquarters Address
                                     75024,United States of America       million during 2010, with a CARC of 2.93% during
                                                                          2006–2010. Its revenue declined at an annual rate of
Telephone                            + 1 972 8011100
                                                                          0.74% over the previous fiscal year. In 2010, the
                                                                          company recorded an operating margin of 11.12%, as
Fax                                  + 1 972 9430113                      against 10.77% in 2009.

Website                              www6.rentacenter.com
                                                                          Revenue and Margins
Ticker Symbol, Stock Exchange        RCII, NASDAQ

Number of Employees                  18,300

Fiscal Year End                      December

Revenue (in US$ million)             2,731.63




SWOT Analysis

Strengths                            Weaknesses                           Return on Equity

Effective marketing strategy         Decline in growth rates              The company recorded a return on equity (ROE) of
                                                                          12.68% for 2010, as compared to its peers, Aaron''s,
                                                                          Inc. (Ticker: AAN), Easyhome Ltd. (Ticker: EH) and
Renowned brand offering              Geographic concentration             Electro Rent Corporation , which recorded ROEs of
                                                                          12.09%, 6.59% and 5.04% respectively. The
Strong market presence in the US                                          company reported a net profit margin of 11.12% in
                                                                          2010.
Superior customer service
                                                                          Return on Equity
Opportunities                        Threats

Growing rent-to-own industry         Growing competition in the market

Positive outlook of consumer
                                     Increase in organized retail crime
electronics market

Strategic acquisitions               Rising manpower costs




                                                                          Financial Leverage

                                                                          The company reported a debt to equity ratio of 0.52 in
                                                                          2010, as compared to its peers, Aaron''s, Inc.,
                                                                          Easyhome Ltd. and Electro Rent Corporation, which
                                                                          recorded debt to equity ratios of 0.00, 0.20 and 0.00
                                                                          respectively. In 2010, the company recorded a debt
                                                                          to capital ratio of 0.00, as compared to its peers,
                                                                          Aaron''s, Inc., Easyhome Ltd. and Electro Rent
                                                                          Corporation, which recorded debt to capital ratios of
                                                                          0.00, 0.00 and 0.00 respectively.




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Rent-A-Center, Inc. - SWOT Profile                                                                                Page 1
Rent-A-Center, Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Valuation ..........................................................................................................................................................13
    2.3       Competitive Benchmarking ..................................................................................................................................14
      2.3.1       Market Capitalization .......................................................................................................................................15
      2.3.2       Efficiency ..........................................................................................................................................................16
      2.3.3       Capital Expenditure ..........................................................................................................................................17
      2.3.4       Valuation ..........................................................................................................................................................18
3     Recent Developments ........................................................................................................................... 19
4     SWOT Analysis ...................................................................................................................................... 20
    4.1       SWOT Analysis - Overview ..................................................................................................................................20
    4.2       Strengths ..............................................................................................................................................................20
    4.3       Weaknesses .........................................................................................................................................................20
    4.4       Opportunities ........................................................................................................................................................21
    4.5       Threats .................................................................................................................................................................21
5     Rent-A-Center, Inc. - Company Statement ....................................
								
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