UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
USA - NASDAQ:UPBD - US76009N1000 - Common Stock
22.49 USD
-0.4 (-1.75%)
22.49 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to UPBD. UPBD was compared to 119 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
UPBD has a Return On Assets of 3.30%. This is in the better half of the industry: UPBD outperforms 61.34% of its industry peers.
Looking at the Return On Equity, with a value of 14.90%, UPBD is in the better half of the industry, outperforming 73.11% of the companies in the same industry.
UPBD has a Return On Invested Capital of 10.72%. This is in the better half of the industry: UPBD outperforms 73.95% 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 12.29%.
| 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's Profit Margin of 2.28% is fine compared to the rest of the industry. UPBD outperforms 62.18% of its industry peers.
In the last couple of years the Profit Margin of UPBD has declined.
UPBD's Operating Margin of 6.93% is fine compared to the rest of the industry. UPBD outperforms 74.79% of its industry peers.
In the last couple of years the Operating Margin of UPBD has declined.
UPBD has a better Gross Margin (47.78%) than 73.95% of its industry peers.
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
UPBD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
UPBD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UPBD remains at a similar level compared to 5 years ago.
The debt/assets ratio for UPBD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that UPBD is not a great score, but indicates only limited risk for bankruptcy at the moment.
UPBD's Altman-Z score of 2.84 is fine compared to the rest of the industry. UPBD outperforms 63.87% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 11.96, UPBD is in line with its industry, outperforming 53.78% of the companies in the same industry.
A Debt/Equity ratio of 2.29 is on the high side and indicates that UPBD has dependencies on debt financing.
UPBD has a Debt to Equity ratio of 2.29. This is in the lower half of the industry: UPBD underperforms 72.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.06
WACC10.15%
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.
Looking at the Current ratio, with a value of 1.85, UPBD belongs to the top of the industry, outperforming 81.51% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.37, UPBD is doing worse than 65.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.12% 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.
UPBD shows a small growth in Revenue. In the last year, the Revenue has grown by 7.49%.
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)20.12%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%7.69%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%7.53%
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 12.31% on average per year.
The Revenue is expected to grow by 5.64% on average over the next years.
EPS Next Y13.03%
EPS Next 2Y17.39%
EPS Next 3Y19.33%
EPS Next 5Y12.31%
Revenue Next Year8.5%
Revenue Next 2Y8.56%
Revenue Next 3Y8.24%
Revenue Next 5Y5.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
UPBD is valuated cheaply with a Price/Earnings ratio of 5.46.
Compared to the rest of the industry, the Price/Earnings ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 96.64% of the companies listed in the same industry.
UPBD is valuated cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.26, which indicates a rather cheap valuation of UPBD.
100.00% of the companies in the same industry are more expensive than UPBD, based on the Price/Forward Earnings ratio.
UPBD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 4.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPBD is valued a bit cheaper than 75.63% 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 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 6.42 |
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.
UPBD's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)0.48
EPS Next 2Y17.39%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
UPBD has a Yearly Dividend Yield of 7.21%, which is a nice return.
UPBD's Dividend Yield is rather good when compared to the industry average which is at 5.51. UPBD pays more dividend than 96.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
5.2 History
On average, the dividend of UPBD grows each year by 42.90%, which is quite nice.
UPBD has paid a dividend for at least 10 years, which is 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
82.29% of the earnings are spent on dividend by UPBD. 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.
DP82.29%
EPS Next 2Y17.39%
EPS Next 3Y19.33%
22.49
-0.4 (-1.75%)
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-1%
Market Cap1.30B
Revenue(TTM)4.48B
Net Income(TTM)102.12M
Analysts84.29
Price Target37.1 (64.96%)
Short Float %6.6%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
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)5.43%
PT rev (3m)0.34%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 4.26 | ||
| P/S | 0.29 | ||
| P/FCF | 9.94 | ||
| P/OCF | 6.86 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.42 |
EPS(TTM)4.12
EY18.32%
EPS(NY)5.28
Fwd EY23.47%
FCF(TTM)2.26
FCFY10.06%
OCF(TTM)3.28
OCFY14.58%
SpS77.41
BVpS11.84
TBVpS-3.11
PEG (NY)0.42
PEG (5Y)0.48
Graham Number33.13
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 | 2.84 |
F-Score4
WACC10.15%
ROIC/WACC1.06
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)20.12%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%7.69%
EPS Next Y13.03%
EPS Next 2Y17.39%
EPS Next 3Y19.33%
EPS Next 5Y12.31%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%7.53%
Revenue Next Year8.5%
Revenue Next 2Y8.56%
Revenue Next 3Y8.24%
Revenue Next 5Y5.64%
EBIT growth 1Y8.26%
EBIT growth 3Y-10.91%
EBIT growth 5Y-2.19%
EBIT Next Year50.49%
EBIT Next 3Y25.59%
EBIT Next 5Y15.07%
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%