UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
USA - NASDAQ:UPBD - US76009N1000 - Common Stock
27.34 USD
+0.59 (+2.21%)
27.34 USD
0 (0%)
UPBD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. While UPBD is still in line with the averages on profitability rating, there are concerns on its financial health. UPBD is valued quite cheap, while showing a decent growth score. This is a good combination! UPBD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UPBD had positive earnings in the past year.
UPBD had a positive operating cash flow in the past year.
Of the past 5 years UPBD 4 years were profitable.
Each year in the past 5 years UPBD had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.30%, UPBD is doing good in the industry, outperforming 62.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.90%, UPBD is in the better half of the industry, outperforming 73.55% of the companies in the same industry.
UPBD's Return On Invested Capital of 10.72% is fine compared to the rest of the industry. UPBD outperforms 74.38% 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 12.16%.
| 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
The Profit Margin of UPBD (2.28%) is better than 62.81% of its industry peers.
In the last couple of years the Profit Margin of UPBD has declined.
The Operating Margin of UPBD (6.93%) is better than 76.03% 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 75.21% of the companies in the same industry.
UPBD's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, UPBD has more shares outstanding
The number of shares outstanding for UPBD remains at a similar level compared to 5 years ago.
Compared to 1 year ago, UPBD has a worse debt to assets ratio.
2.2 Solvency
UPBD has an Altman-Z score of 2.91. 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.
With a decent Altman-Z score value of 2.91, UPBD is doing good in the industry, outperforming 63.64% of the companies in the same industry.
UPBD has a debt to FCF ratio of 11.96. This is a negative value and a sign of low solvency as UPBD would need 11.96 years to pay back of all of its debts.
UPBD has a Debt to FCF ratio (11.96) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.29 is on the high side and indicates that UPBD has dependencies on debt financing.
With a Debt to Equity ratio value of 2.29, UPBD is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.05
WACC10.22%
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.
UPBD has a Current ratio of 1.85. This is amongst the best in the industry. UPBD outperforms 81.82% of its industry peers.
A Quick Ratio of 0.37 indicates that UPBD may have some problems paying its short term obligations.
UPBD has a Quick ratio of 0.37. This is in the lower half of the industry: UPBD underperforms 65.29% of its industry peers.
| 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.
The Earnings Per Share has been growing by 11.32% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.49% 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)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
UPBD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.31% yearly.
Based on estimates for the next years, UPBD will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y12.69%
EPS Next 2Y17.32%
EPS Next 3Y19.33%
EPS Next 5Y12.31%
Revenue Next Year8.34%
Revenue Next 2Y8.39%
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
A Price/Earnings ratio of 6.64 indicates a rather cheap valuation of UPBD.
Based on the Price/Earnings ratio, UPBD is valued cheaper than 96.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. UPBD is valued rather cheaply when compared to this.
UPBD is valuated cheaply with a Price/Forward Earnings ratio of 5.19.
UPBD's Price/Forward Earnings ratio is rather cheap when compared to the industry. UPBD is cheaper than 97.52% of the companies in the same industry.
UPBD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 5.19 |
4.2 Price Multiples
76.86% of the companies in the same industry are more expensive than UPBD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 84.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
The 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 19.33% in the coming years.
PEG (NY)0.52
PEG (5Y)0.59
EPS Next 2Y17.32%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
UPBD has a Yearly Dividend Yield of 6.11%, which is a nice return.
Compared to an average industry Dividend Yield of 5.22, UPBD pays a better dividend. On top of this UPBD pays more dividend than 95.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
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 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 2Y17.32%
EPS Next 3Y19.33%
27.34
+0.59 (+2.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.36%
Inst Owner ChangeN/A
Ins Owners8.38%
Ins Owner Change-1%
Market Cap1.58B
Analysts82.86
Price Target35.19 (28.71%)
Short Float %6.81%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
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)-4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.64 | ||
| Fwd PE | 5.19 | ||
| P/S | 0.35 | ||
| P/FCF | 12.09 | ||
| P/OCF | 8.34 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.07 |
EPS(TTM)4.12
EY15.07%
EPS(NY)5.27
Fwd EY19.28%
FCF(TTM)2.26
FCFY8.27%
OCF(TTM)3.28
OCFY11.99%
SpS77.41
BVpS11.84
TBVpS-3.11
PEG (NY)0.52
PEG (5Y)0.59
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%
ROICexcg growth 3Y-10.3%
ROICexcg 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 | 2.91 |
F-Score4
WACC10.22%
ROIC/WACC1.05
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 Y12.69%
EPS Next 2Y17.32%
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 Year8.34%
Revenue Next 2Y8.39%
Revenue Next 3Y8.24%
Revenue Next 5Y5.64%
EBIT growth 1Y8.26%
EBIT growth 3Y-10.91%
EBIT growth 5Y-2.19%
EBIT Next Year50.19%
EBIT Next 3Y25.48%
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%