As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Aaron’s Inc (NYSE:AAN), it is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Aaron’s here.
Solid track record with adequate balance sheet
AAN delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did AAN outperformed its past performance, its growth also exceeded the Specialty Retail industry expansion, which generated a 23% earnings growth. This is an notable feat for the company. AAN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that AAN manages its cash and cost levels well, which is a crucial insight into the health of the company. AAN appears to have made good use of debt, producing operating cash levels of 1.14x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Aaron’s, I’ve compiled three fundamental aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for AAN’s future growth? Take a look at our free research report of analyst consensus for AAN’s outlook.
- Valuation: What is AAN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AAN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AAN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.