AAN - Aaron's Is A Progressive Story With An Aaron's Problem
The case for Aaron's (AAN) stock no longer centers around the Aaron's brick-and-mortar rent-to-own business. AAN stock is mostly driven by its Progressive Leasing business, which provides lease-to-own financing to traditional retailers. Updated 2019 guidance in the Q3 release suggests Progressive will generate nearly two-thirds of the company's consolidated EBITDA this year. Under any reasonable model, the segment likely accounts for at least three-quarters of overall valuation (I'd peg Progressive's share of enterprise value at around 80%).
So far, Progressive has been more than enough to move AAN stock higher. Even with a