UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
USA - NASDAQ:UPBD - US76009N1000 - Common Stock
17.46 USD
-0.06 (-0.34%)
17.5 USD
+0.04 (+0.23%)
UPBD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth UPBD also has an excellent dividend rating.
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.
UPBD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.30%, UPBD is doing good in the industry, outperforming 61.48% of the companies in the same industry.
UPBD has a Return On Equity of 14.90%. This is in the better half of the industry: UPBD outperforms 74.59% of its industry peers.
UPBD has a better Return On Invested Capital (10.72%) than 74.59% of its industry peers.
UPBD had an Average Return On Invested Capital over the past 3 years of 11.93%. This is in line with the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 14.9% | ||
| ROIC | 10.72% |
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 better Profit Margin (2.28%) than 62.30% of its industry peers.
UPBD's Profit Margin has declined in the last couple of years.
UPBD has a Operating Margin of 6.93%. This is in the better half of the industry: UPBD outperforms 73.77% of its industry peers.
In the last couple of years the Operating Margin of UPBD has declined.
Looking at the Gross Margin, with a value of 47.78%, UPBD is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
In the last couple of years the Gross Margin of UPBD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 2.28% | ||
| GM | 47.78% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UPBD is still 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.
Compared to 1 year ago, UPBD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.76 indicates that UPBD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.76, UPBD is doing good in the industry, outperforming 60.66% of the companies in the same industry.
The Debt to FCF ratio of UPBD is 11.96, which is on the high side as it means it would take UPBD, 11.96 years of fcf income to pay off all of its debts.
UPBD has a Debt to FCF ratio of 11.96. This is comparable to the rest of the industry: UPBD outperforms 53.28% of its industry peers.
UPBD has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
UPBD has a worse Debt to Equity ratio (2.29) than 72.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.07
WACC10.04%
2.3 Liquidity
UPBD has a Current Ratio of 1.85. This is a normal value and indicates that UPBD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of UPBD (1.85) is better than 81.97% of its industry peers.
UPBD has a Quick Ratio of 1.85. This is a bad value and indicates that UPBD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.37, UPBD is not doing good in the industry: 64.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
UPBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.16%, which is quite good.
UPBD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.32% yearly.
Looking at the last year, UPBD shows a quite strong growth in Revenue. The Revenue has grown by 8.22% in the last 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)8.22%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%8.97%
3.2 Future
Based on estimates for the next years, UPBD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.46% on average per year.
UPBD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.79% yearly.
EPS Next Y3.07%
EPS Next 2Y14.29%
EPS Next 3Y16.9%
EPS Next 5Y11.46%
Revenue Next Year8.62%
Revenue Next 2Y8.15%
Revenue Next 3Y7.85%
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
A Price/Earnings ratio of 4.19 indicates a rather cheap valuation of UPBD.
UPBD's Price/Earnings ratio is rather cheap when compared to the industry. UPBD is cheaper than 97.54% of the companies in the same industry.
UPBD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 3.49 indicates a rather cheap valuation of UPBD.
Based on the Price/Forward Earnings ratio, UPBD is valued cheaper than 100.00% of the companies in the same industry.
UPBD is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.19 | ||
| Fwd PE | 3.49 |
4.2 Price Multiples
UPBD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UPBD is cheaper than 80.33% of the companies in the same industry.
UPBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UPBD is cheaper than 91.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
UPBD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as UPBD's earnings are expected to grow with 16.90% in the coming years.
PEG (NY)1.37
PEG (5Y)0.37
EPS Next 2Y14.29%
EPS Next 3Y16.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.40%, UPBD is a good candidate for dividend investing.
The stock price of UPBD dropped by -24.97% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
UPBD's Dividend Yield is rather good when compared to the industry average which is at 5.58. UPBD pays more dividend than 97.54% of the companies in the same industry.
UPBD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
5.2 History
The dividend of UPBD is nicely growing with an annual growth rate of 42.90%!
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 82.29% of its income as dividend. This is not a sustainable payout ratio.
UPBD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.29%
EPS Next 2Y14.29%
EPS Next 3Y16.9%
17.46
-0.06 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners85.89%
Inst Owner ChangeN/A
Ins Owners8.35%
Ins Owner Change-2.04%
Market Cap1.01B
Revenue(TTM)4.32B
Net Income(TTM)102.12M
Analysts84.29
Price Target37.1 (112.49%)
Short Float %7.44%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
Yearly Dividend1.51
Dividend Growth(5Y)42.9%
DP82.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.66%
Min EPS beat(2)3.33%
Max EPS beat(2)3.99%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-0.12%
Max EPS beat(4)3.99%
EPS beat(8)6
Avg EPS beat(8)1.62%
EPS beat(12)10
Avg EPS beat(12)8.31%
EPS beat(16)12
Avg EPS beat(16)4.93%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)2.29%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)7
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)5.43%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)1.65%
EPS NY rev (1m)-8.81%
EPS NY rev (3m)-8.03%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.19 | ||
| Fwd PE | 3.49 | ||
| P/S | 0.23 | ||
| P/FCF | 7.72 | ||
| P/OCF | 5.33 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)4.17
EY23.88%
EPS(NY)5
Fwd EY28.65%
FCF(TTM)2.26
FCFY12.95%
OCF(TTM)3.28
OCFY18.78%
SpS77.41
BVpS11.84
TBVpS-3.11
PEG (NY)1.37
PEG (5Y)0.37
Graham Number33.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 14.9% | ||
| ROCE | 13.57% | ||
| ROIC | 10.72% | ||
| ROICexc | 11.25% | ||
| ROICexgc | 18.72% | ||
| OM | 6.93% | ||
| PM (TTM) | 2.28% | ||
| GM | 47.78% | ||
| FCFM | 2.92% |
ROA(3y)1.64%
ROA(5y)4.26%
ROE(3y)7.02%
ROE(5y)16.5%
ROIC(3y)11.93%
ROIC(5y)14.36%
ROICexc(3y)12.54%
ROICexc(5y)15.63%
ROICexgc(3y)18.23%
ROICexgc(5y)21.19%
ROCE(3y)15.11%
ROCE(5y)18.18%
ROICexgc growth 3Y-10.3%
ROICexgc growth 5Y-13.65%
ROICexc growth 3Y-8%
ROICexc growth 5Y-17.42%
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%
F-Score4
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 11.96 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 49.05% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.09% | ||
| Profit Quality | 128.24% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.76 |
F-Score4
WACC10.04%
ROIC/WACC1.07
Cap/Depr(3y)44.47%
Cap/Depr(5y)46.21%
Cap/Sales(3y)1.36%
Cap/Sales(5y)1.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.16%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%5.26%
EPS Next Y3.07%
EPS Next 2Y14.29%
EPS Next 3Y16.9%
EPS Next 5Y11.46%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%8.97%
Revenue Next Year8.62%
Revenue Next 2Y8.15%
Revenue Next 3Y7.85%
Revenue Next 5Y5.79%
EBIT growth 1Y8.26%
EBIT growth 3Y-10.91%
EBIT growth 5Y-2.19%
EBIT Next Year50.49%
EBIT Next 3Y25.59%
EBIT Next 5Y14.06%
FCF growth 1Y-51.77%
FCF growth 3Y-47.24%
FCF growth 5Y-24.25%
OCF growth 1Y-41.31%
OCF growth 3Y-35.61%
OCF growth 5Y-13.43%
UPBOUND GROUP INC / UPBD FAQ
What is the fundamental rating for UPBD stock?
ChartMill assigns a fundamental rating of 5 / 10 to UPBD.
What is the valuation status for UPBD stock?
ChartMill assigns a valuation rating of 8 / 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.
What is the valuation of UPBOUND GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UPBOUND GROUP INC (UPBD) is 4.19 and the Price/Book (PB) ratio is 1.47.
Is the dividend of UPBOUND GROUP INC sustainable?
The dividend rating of UPBOUND GROUP INC (UPBD) is 7 / 10 and the dividend payout ratio is 82.29%.