NASDAQ:UPBD is probably undervalued for the fundamentals it is displaying.

Uncover the potential of UPBOUND GROUP INC (NASDAQ:UPBD) as our stock screener's choice for an undervalued stock. NASDAQ:UPBD maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation for NASDAQ:UPBD

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:UPBD scores a 8 out of 10:

• The Price/Earnings ratio is 9.22, which indicates a very decent valuation of UPBD.
• 92.56% of the companies in the same industry are more expensive than UPBD, based on the Price/Earnings ratio.
• UPBD is valuated cheaply when we compare the Price/Earnings ratio to 29.10, which is the current average of the S&P500 Index.
• UPBD is valuated cheaply with a Price/Forward Earnings ratio of 7.51.
• Based on the Price/Forward Earnings ratio, UPBD is valued cheaply inside the industry as 91.74% of the companies are valued more expensively.
• UPBD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
• Based on the Enterprise Value to EBITDA ratio, UPBD is valued a bit cheaper than 78.51% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, UPBD is valued a bit cheaper than the industry average as 67.77% of the companies are valued more expensively.
• 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.
• UPBD's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.

Assessing Profitability 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 Return On Assets of 3.15%. This is in the better half of the industry: UPBD outperforms 60.33% of its industry peers.
• With a decent Return On Equity value of 13.28%, UPBD is doing good in the industry, outperforming 71.90% of the companies in the same industry.
• UPBD's Return On Invested Capital of 12.52% is amongst the best of the industry. UPBD outperforms 80.99% of its industry peers.
• With a decent Operating Margin value of 7.05%, UPBD is doing good in the industry, outperforming 76.03% of the companies in the same industry.
• UPBD's Operating Margin has improved in the last couple of years.
• The Gross Margin of UPBD (48.94%) is better than 77.69% of its industry peers.

Understanding NASDAQ:UPBD's Health

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:

• UPBD has an Altman-Z score of 3.49. This indicates that UPBD is financially healthy and has little risk of bankruptcy at the moment.
• UPBD has a better Altman-Z score (3.49) than 76.03% of its industry peers.
• UPBD has a Current Ratio of 2.08. This indicates that UPBD is financially healthy and has no problem in meeting its short term obligations.
• UPBD's Current ratio of 2.08 is fine compared to the rest of the industry. UPBD outperforms 79.34% of its industry peers.

Growth Insights: NASDAQ:UPBD

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:UPBD was assigned a score of 5 for growth:

• 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.
• Based on estimates for the next years, UPBD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.96% on average per year.

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

Check the latest full fundamental report of UPBD for a complete fundamental analysis.

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.