Investors Peering into the Details on Rent-A-Center, Inc. (NasdaqGS:RCII) as Value Comp Hits 36

The Value Composite 2 (VC2) is a ranking system that is determined by using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield. The Value Composite Two of Rent-A-Center, Inc. (NasdaqGS:RCII) is 36.   Similarly, the Value Composite One (VC1) is a method that investors use to determine a firm’s value. The VC1 is determined using the same metrics as VC2, but without taking into consideration shareholder yield. The VC1 of Rent-A-Center, Inc. (NasdaqGS:RCII) is 28.  A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm. 

Investing in the equity market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will have to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because equity market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin. 

At the time of writing, Rent-A-Center, Inc. (NasdaqGS:RCII) has a Piotroski F-Score of 7. The F-Score may aid locate companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the firm financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Watching some historical volatility numbers on shares of Rent-A-Center, Inc. (NasdaqGS:RCII), we can see that the 12 month volatility is right now 47.526900. The 6 month volatility is 31.039300, and the 3 month is spotted at 43.574600. Following volatility data can aid quantify how much the stock price has fluctuated over the specified time season. Although past volatility action may aid project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time season. 

Shifting gears, we can see that Rent-A-Center, Inc. (NasdaqGS:RCII) has a Q.i. Value of 36.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to aid identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the firm tends to be.

Rent-A-Center, Inc. (NasdaqGS:RCII) has a current MF Rank of 9270. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. Rent-A-Center, Inc. has a current ERP5 Rank of 10177. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When considering at the ERP5 ranking, it is generally considered the lower the value, the better.

Rent-A-Center, Inc. has an M-score Beneish of -2.839069. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of Rent-A-Center, Inc. (NasdaqGS:RCII). The name currently has a score of 8.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

We can now take a quick glimpse at some historical stock price index data. Rent-A-Center, Inc. (NasdaqGS:RCII) right now has a 10 month price index of 1.75935. The price index is determined by dividing the current equity price by the equity price ten months ago. A ratio over one points out an increase in equity price over the season. A ratio lower than one shows that the price has decreased over that time season. Gazing at some other time periods, the 12 month price index is 1.81061, the 24 month is 2.07320, and the 36 month is 1.59075. Narrowing in a bit closer, the 5 month price index is 1.17806, the 3 month is 1.20666, and the 1 month is currently 1.02898.

Active investors are constantly faced with tough decisions when managing their own stock portfolios. Deciding when to sell a certain stock may be just as vital as choosing which stocks to buy in the first place. There are bound to be extremes on both sides when analyzing buy and sell decisions. Maybe a well researched stock hasn’t seen the gains that were expected at the outset. When emotions take over, the investor may not be able to part with the stock. They may hold on to the equity with the hopes that someday it will bounce back. Of course this may happen eventually, but the situation could also worsen and the stock may keep losing. The same decisions sometimes have to be made when dealing with a winning stock. After a big run, the investor may have to decide whether to take the profits or hold off to see if the stock will continue to push upwards. These are no easy decisions for the individual investor. Being able to make the proper portfolio moves may take some time to master, but it may end up being highly essential for continued, long-term success. 

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