18.91 USD
-0.4 (-2.07%)
19.01 USD
+0.1 (+0.53%)
We assign a fundamental rating of 5 out of 10 to UPBD. UPBD was compared to 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of UPBD while its profitability can be described as average. UPBD is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year UPBD was profitable.
- UPBD had a positive operating cash flow in the past year.
- UPBD had positive earnings in 4 of the past 5 years.
- In the past 5 years UPBD always reported a positive cash flow from operatings.
1.2 Ratios
- UPBD has a Return On Assets (2.63%) which is in line with its industry peers.
- UPBD has a Return On Equity of 12.29%. This is in the better half of the industry: UPBD outperforms 69.67% of its industry peers.
- UPBD has a better Return On Invested Capital (10.19%) than 76.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for UPBD is in line with the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.63% | ||
| ROE | 12.29% | ||
| ROIC | 10.19% |
ROA(3y)1.64%
ROA(5y)4.26%
ROE(3y)7.02%
ROE(5y)16.5%
ROIC(3y)11.93%
ROIC(5y)14.36%
1.3 Margins
- UPBD has a Profit Margin (1.85%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of UPBD has declined.
- The Operating Margin of UPBD (6.66%) is better than 73.77% of its industry peers.
- UPBD's Operating Margin has declined in the last couple of years.
- UPBD has a Gross Margin of 47.91%. This is in the better half of the industry: UPBD outperforms 73.77% of its industry peers.
- UPBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.66% | ||
| PM (TTM) | 1.85% | ||
| GM | 47.91% |
OM growth 3Y-9.14%
OM growth 5Y-11.16%
PM growth 3Y-0.98%
PM growth 5Y-15.15%
GM growth 3Y-0.42%
GM growth 5Y-4.8%
2. Health
2.1 Basic Checks
- UPBD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, UPBD has more shares outstanding
- Compared to 5 years ago, UPBD has about the same amount of shares outstanding.
- UPBD has a worse debt/assets ratio than last year.
2.2 Solvency
- UPBD has an Altman-Z score of 2.70. This is not the best score and indicates that UPBD is in the grey zone with still only limited risk for bankruptcy at the moment.
- UPBD's Altman-Z score of 2.70 is in line compared to the rest of the industry. UPBD outperforms 59.02% of its industry peers.
- The Debt to FCF ratio of UPBD is 10.99, which is on the high side as it means it would take UPBD, 10.99 years of fcf income to pay off all of its debts.
- UPBD has a Debt to FCF ratio (10.99) which is in line with its industry peers.
- A Debt/Equity ratio of 2.25 is on the high side and indicates that UPBD has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.25, UPBD is not doing good in the industry: 70.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 10.99 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.99
WACC10.34%
2.3 Liquidity
- A Current Ratio of 1.81 indicates that UPBD should not have too much problems paying its short term obligations.
- UPBD has a better Current ratio (1.81) than 76.23% of its industry peers.
- A Quick Ratio of 0.37 indicates that UPBD may have some problems paying its short term obligations.
- With a Quick ratio value of 0.37, UPBD is not doing good in the industry: 62.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.16% over the past year.
- UPBD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.32% yearly.
- The Revenue has been growing slightly by 7.48% in the past year.
- UPBD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.11% yearly.
EPS 1Y (TTM)16.16%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%5.26%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%8.97%
3.2 Future
- UPBD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.46% yearly.
- Based on estimates for the next years, UPBD will show a small growth in Revenue. The Revenue will grow by 5.79% on average per year.
EPS Next Y9.42%
EPS Next 2Y12.4%
EPS Next 3Y15.52%
EPS Next 5Y11.46%
Revenue Next Year8.73%
Revenue Next 2Y8.15%
Revenue Next 3Y7.86%
Revenue Next 5Y5.79%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 4.53, the valuation of UPBD can be described as very cheap.
- Based on the Price/Earnings ratio, UPBD is valued cheaper than 97.54% of the companies in the same industry.
- When comparing the Price/Earnings ratio of UPBD to the average of the S&P500 Index (28.60), we can say UPBD is valued rather cheaply.
- UPBD is valuated cheaply with a Price/Forward Earnings ratio of 3.91.
- Based on the Price/Forward Earnings ratio, UPBD is valued cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, UPBD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 3.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UPBD is valued cheaper than 83.61% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 88.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
- UPBD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as UPBD's earnings are expected to grow with 15.52% in the coming years.
PEG (NY)0.48
PEG (5Y)0.4
EPS Next 2Y12.4%
EPS Next 3Y15.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.02%, UPBD is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.15, UPBD pays a better dividend. On top of this UPBD pays more dividend than 95.90% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
5.2 History
- On average, the dividend of UPBD grows each year by 42.90%, which is quite nice.
- UPBD has been paying a dividend for at least 10 years, so it has a reliable track record.
- UPBD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)42.9%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- UPBD pays out 101.77% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of UPBD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP101.77%
EPS Next 2Y12.4%
EPS Next 3Y15.52%
UPBOUND GROUP INC / UPBD FAQ
What is the fundamental rating for UPBD stock?
ChartMill assigns a fundamental rating of 5 / 10 to UPBD.
Can you provide the valuation status for UPBOUND GROUP INC?
ChartMill assigns a valuation rating of 9 / 10 to UPBOUND GROUP INC (UPBD). This can be considered as Undervalued.
How profitable is UPBOUND GROUP INC (UPBD) stock?
UPBOUND GROUP INC (UPBD) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for UPBD stock?
The Earnings per Share (EPS) of UPBOUND GROUP INC (UPBD) is expected to grow by 9.42% in the next year.
Can you provide the dividend sustainability for UPBD stock?
The dividend rating of UPBOUND GROUP INC (UPBD) is 6 / 10 and the dividend payout ratio is 101.77%.