NASDAQ:UPBD: good value for what you're paying.

Last update: Sep 12, 2024

Our stock screener has singled out UPBOUND GROUP INC (NASDAQ:UPBD) as a stellar value proposition. NASDAQ:UPBD not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Assessing Valuation for NASDAQ:UPBD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:UPBD has achieved a 8 out of 10:

UPBD is valuated reasonably with a Price/Earnings ratio of 8.72.
Based on the Price/Earnings ratio, UPBD is valued cheaply inside the industry as 88.43% of the companies are valued more expensively.
UPBD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.15.
The Price/Forward Earnings ratio is 6.58, which indicates a rather cheap valuation of UPBD.
Based on the Price/Forward Earnings ratio, UPBD is valued cheaply inside the industry as 96.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UPBD to the average of the S&P500 Index (21.77), we can say UPBD is valued rather cheaply.
UPBD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UPBD is cheaper than 76.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UPBD is valued a bit cheaper than 61.16% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of UPBD may justify a higher PE ratio.
A more expensive valuation may be justified as UPBD's earnings are expected to grow with 13.54% in the coming years.

What does the Profitability looks like for NASDAQ:UPBD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:UPBD has achieved a 6:

UPBD has a better Return On Equity (9.19%) than 65.29% of its industry peers.
The Return On Invested Capital of UPBD (11.59%) is better than 80.17% of its industry peers.
Looking at the Operating Margin, with a value of 6.88%, UPBD is in the better half of the industry, outperforming 75.21% of the companies in the same industry.
UPBD's Operating Margin has improved in the last couple of years.
UPBD has a better Gross Margin (49.66%) than 77.69% of its industry peers.

Health Assessment of NASDAQ:UPBD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:UPBD scores a 5 out of 10:

An Altman-Z score of 3.34 indicates that UPBD is not in any danger for bankruptcy at the moment.
UPBD has a better Altman-Z score (3.34) than 79.34% of its industry peers.
A Current Ratio of 2.17 indicates that UPBD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.17, UPBD belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.

Understanding NASDAQ:UPBD's Growth Score

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:UPBD boasts a 4 out of 10:

The Earnings Per Share has been growing by 28.01% on average over the past years. This is a very strong growth
Measured over the past years, UPBD shows a quite strong growth in Revenue. The Revenue has been growing by 8.46% on average per year.
The Earnings Per Share is expected to grow by 8.96% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of UPBD contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.