The Aaron's Company, Inc.
The Aaron's Company, Inc. Fundamental Analysis
The Aaron's Company, Inc. (AAN) shows weak financial fundamentals with a PE ratio of 110.01, profit margin of 0.13%, and ROE of 0.41%. The company generates $2.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAN's fundamental strength across five key dimensions:
Efficiency Score
WeakAAN struggles to generate sufficient returns from assets.
Valuation Score
ModerateAAN shows balanced valuation metrics.
Growth Score
WeakAAN faces weak or negative growth trends.
Financial Health Score
ExcellentAAN maintains a strong and stable balance sheet.
Profitability Score
ModerateAAN maintains healthy but balanced margins.
Key Financial Metrics
Is AAN Expensive or Cheap?
P/E Ratio
AAN trades at 110.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AAN's PEG of 1.10 indicates fair valuation.
Price to Book
The market values The Aaron's Company, Inc. at 0.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.35 times EBITDA. This is generally considered low.
How Well Does AAN Make Money?
Net Profit Margin
For every $100 in sales, The Aaron's Company, Inc. keeps $0.13 as profit after all expenses.
Operating Margin
Core operations generate 0.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.41 in profit for every $100 of shareholder equity.
ROA
The Aaron's Company, Inc. generates $0.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Aaron's Company, Inc. generates limited operating cash flow of $184.94M, signaling weaker underlying cash strength.
Free Cash Flow
The Aaron's Company, Inc. produces free cash flow of $88.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.79 in free cash annually.
FCF Yield
AAN converts 27.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
110.007
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How AAN Stacks Against Its Sector Peers
| Metric | AAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 110.01 | 26.76 | Worse (Expensive) |
| ROE | 0.41% | 1300.00% | Weak |
| Net Margin | 0.13% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.84 | 0.79 | Neutral |
| Current Ratio | 2.08 | 10.68 | Strong Liquidity |
| ROA | 0.15% | -1545134.00% (disorted) | Weak |
AAN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Aaron's Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure