Rent-A-Center: The Transformation Is Well Underway

Grant Nelson
114 Followers

Summary

  • Rent-A-Center has emerged as a leading omnichannel retailer in the lease-to-own (LTO) space.
  • The company is ahead of schedule on deleveraging and integrating the largest acquisition in its history.
  • Shares of RCII can expect to be buoyed through buybacks and a growing dividend, both of which are being driven by increased operating cash flow.
  • I provide a bullish financial valuation pointing to a tremendous upside opportunity.
Lease vs buy. White two street signs with arrow on metal pole with word. Directional road. Crossroads Road Sign, Two Arrow. Blue sky background. Concept for own property versus borrow it.

Maria Vonotna/iStock via Getty Images

Rent-A-Center, Inc. (RCII)'s stock is primed to continue its march higher in 2022 as it is being fueled by a shift in consumer buying behavior and by growing cash flow. In just two quarters since the Acima acquisition, Rent-A-Center's results

This article was written by

114 Followers
Individual investor focused on value, growth, and income generating securities. Writing articles is a hobby and I appreciate constructive dialogue in evaluating prospects.Licensed CPA.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RCII either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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