When you look at NASDAQ:UPBD, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Oct 4, 2024

Our stock screener has spotted UPBOUND GROUP INC (NASDAQ:UPBD) as an undervalued stock with solid fundamentals. NASDAQ:UPBD shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Assessment of NASDAQ:UPBD

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:UPBD has received a 7 out of 10:

A Price/Earnings ratio of 8.35 indicates a reasonable valuation of UPBD.
Based on the Price/Earnings ratio, UPBD is valued cheaper than 92.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.77. UPBD is valued rather cheaply when compared to this.
UPBD is valuated cheaply with a Price/Forward Earnings ratio of 6.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 98.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.21, UPBD is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, UPBD is valued a bit cheaper than 74.59% of the companies in the same industry.
UPBD's 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.

Evaluating Profitability: 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:

Looking at the Return On Equity, with a value of 9.19%, UPBD is in the better half of the industry, outperforming 64.75% of the companies in the same industry.
The Return On Invested Capital of UPBD (11.59%) is better than 80.33% of its industry peers.
UPBD has a better Operating Margin (6.88%) than 76.23% of its industry peers.
In the last couple of years the Operating Margin of UPBD has grown nicely.
With a decent Gross Margin value of 49.66%, UPBD is doing good in the industry, outperforming 77.05% of the companies in the same industry.

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 3.32 indicates that UPBD is not in any danger for bankruptcy at the moment.
UPBD has a better Altman-Z score (3.32) than 71.31% 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 80.33% of the companies in the same industry.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:UPBD scores a 4 out of 10:

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

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of UPBD

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.