R

Rent-A-Center Inc
F:RAC

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Rent-A-Center Inc
F:RAC
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Price: 28.6 EUR -1.38% Market Closed
Market Cap: 1.6B EUR
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Operating Margin
Rent-A-Center Inc

7.1%
Current
8%
Average
3%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
7.1%
=
Operating Profit
300.3m
/
Revenue
4.3B

Operating Margin Across Competitors

Country US
Market Cap 1.6B EUR
Operating Margin
7%
Country US
Market Cap 18.8B USD
Operating Margin
4%
Country US
Market Cap 14.4B USD
Operating Margin
-1%
Country JP
Market Cap 1.6T JPY
Operating Margin
16%
Country AU
Market Cap 10.6B AUD
Operating Margin
7%
Country VN
Market Cap 89.8T VND
Operating Margin
3%
Country CN
Market Cap 18.8B CNY
Operating Margin
1%
Country JP
Market Cap 382.4B JPY
Operating Margin
3%
Country SA
Market Cap 7.2B SAR
Operating Margin
10%
Country TH
Market Cap 64.4B THB
Operating Margin
5%
Country JP
Market Cap 296.1B JPY
Operating Margin
3%
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Rent-A-Center Inc
Glance View

Market Cap
1.6B EUR
Industry
Retail

Rent-A-Center Inc., a leading player in the rent-to-own industry, traces its roots back to 1973, when the idea of renting household goods was still fairly novel. The company carved a niche for itself by offering an alternative path to ownership, especially for consumers who might otherwise struggle due to financial constraints. Rent-A-Center capitalizes on this need by providing furniture, appliances, electronics, and computers through flexible rental agreements, allowing customers to eventually own these products. It operates primarily through a straightforward business model: customers pay weekly, bi-weekly, or monthly payments to lease products and can own them after completing the predetermined lease period. By catering to those who prefer not to use traditional credit options, the company found its footing in a market segment that values flexibility and immediate access. The profitability of Rent-A-Center hinges on both interest-like returns embedded in rental agreements and the ability to reclaim products if payments default, which can then be refurbished and rented afresh. This cyclical nature of merchandise use ensures multiple revenue streams from a single product. Moreover, the company strategically positions itself in areas where demand for rent-to-own services is robust, often serving lower-to-middle-income neighborhoods. With an operational model that includes brick-and-mortar stores and an e-commerce platform, Rent-A-Center adapts to evolving consumer habits and technological advances. Through acquisitions and partnerships, it has extended its reach and diversified its product offerings, aiming to maintain resilience against economic fluctuations and competitive pressures.

RAC Intrinsic Value
57.16 EUR
Undervaluation 50%
Intrinsic Value
Price
R

See Also

Discover More
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
7.1%
=
Operating Profit
300.3m
/
Revenue
4.3B
What is the Operating Margin of Rent-A-Center Inc?

Based on Rent-A-Center Inc's most recent financial statements, the company has Operating Margin of 7.1%.