UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
NASDAQ:UPBD - Nasdaq - US76009N1000 - Common Stock - Currency: USD
Taking everything into account, UPBD scores 6 out of 10 in our fundamental rating. UPBD was compared to 121 industry peers in the Specialty Retail industry. UPBD has only an average score on both its financial health and profitability. UPBD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 4.66%, UPBD is doing good in the industry, outperforming 66.94% of the companies in the same industry.
With a decent Return On Equity value of 19.63%, UPBD is doing good in the industry, outperforming 76.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.37%, UPBD is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UPBD is below the industry average of 14.13%.
The last Return On Invested Capital (12.37%) for UPBD is above the 3 year average (11.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 19.63% | ||
| ROIC | 12.37% |
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 (2.86%) than 66.12% of its industry peers.
UPBD's Profit Margin has declined in the last couple of years.
UPBD's Operating Margin of 7.37% is fine compared to the rest of the industry. UPBD outperforms 75.21% 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 48.15%, UPBD is in the better half of the industry, outperforming 76.03% of the companies in the same industry.
UPBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.37% | ||
| PM (TTM) | 2.86% | ||
| GM | 48.15% |
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.
The number of shares outstanding for UPBD has been increased compared to 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
UPBD has an Altman-Z score of 3.31. This indicates that UPBD is financially healthy and has little risk of bankruptcy at the moment.
UPBD has a Altman-Z score of 3.31. This is in the better half of the industry: UPBD outperforms 76.86% of its industry peers.
The Debt to FCF ratio of UPBD is 27.03, which is on the high side as it means it would take UPBD, 27.03 years of fcf income to pay off all of its debts.
UPBD has a Debt to FCF ratio (27.03) which is in line with its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that UPBD has dependencies on debt financing.
UPBD's Debt to Equity ratio of 2.08 is on the low side compared to the rest of the industry. UPBD is outperformed by 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 27.03 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.26
WACC9.81%
2.3 Liquidity
UPBD has a Current Ratio of 2.38. This indicates that UPBD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of UPBD (2.38) is better than 87.60% of its industry peers.
A Quick Ratio of 0.35 indicates that UPBD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, UPBD is doing worse than 69.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
UPBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.19%, 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.
The Revenue has been growing by 10.11% on average over the past years. This is quite good.
EPS 1Y (TTM)8.19%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%29.63%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%6.01%
3.2 Future
The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
Based on estimates for the next years, UPBD will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
EPS Next Y11.18%
EPS Next 2Y15.23%
EPS Next 3Y17.36%
EPS Next 5Y10.83%
Revenue Next Year6.75%
Revenue Next 2Y6.77%
Revenue Next 3Y8.39%
Revenue Next 5Y5.55%
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
With a Price/Earnings ratio of 5.37, the valuation of UPBD can be described as very cheap.
Based on the Price/Earnings ratio, UPBD is valued cheaper than 95.04% of the companies in the same industry.
UPBD is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
UPBD is valuated cheaply with a Price/Forward Earnings ratio of 4.83.
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 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.37 | ||
| Fwd PE | 4.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPBD is valued a bit cheaper than the industry average as 75.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UPBD is valued a bit cheaper than 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.36 | ||
| EV/EBITDA | 5.56 |
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.
The decent profitability rating of UPBD may justify a higher PE ratio.
UPBD's earnings are expected to grow with 17.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.47
EPS Next 2Y15.23%
EPS Next 3Y17.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.59%, UPBD is a good candidate for dividend investing.
In the last 3 months the price of UPBD has falen by -30.43%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
UPBD's Dividend Yield is rather good when compared to the industry average which is at 5.62. UPBD pays more dividend than 95.87% of the companies in the same industry.
UPBD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
5.2 History
The dividend of UPBD is nicely growing with an annual growth rate of 42.90%!
UPBD has paid a dividend for at least 10 years, which is a reliable track record.
UPBD has decreased its dividend in the last 3 years.
Dividend Growth(5Y)42.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
66.65% 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.
DP66.65%
EPS Next 2Y15.23%
EPS Next 3Y17.36%
20.55
+0.18 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner ChangeN/A
Ins Owners10.73%
Ins Owner Change16.82%
Market Cap1.18B
Analysts82.67
Price Target40.69 (98%)
Short Float %4.75%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
Yearly Dividend1.51
Dividend Growth(5Y)42.9%
DP66.65%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-0.12%
Max EPS beat(2)0.46%
EPS beat(4)2
Avg EPS beat(4)-0.02%
Min EPS beat(4)-1.18%
Max EPS beat(4)0.77%
EPS beat(8)6
Avg EPS beat(8)9.32%
EPS beat(12)10
Avg EPS beat(12)9.08%
EPS beat(16)12
Avg EPS beat(16)6.55%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)0.65%
Revenue beat(4)3
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)8
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)-2.97%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)5.86%
EPS NY rev (1m)-5.15%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.37 | ||
| Fwd PE | 4.83 | ||
| P/S | 0.27 | ||
| P/FCF | 24.36 | ||
| P/OCF | 11.27 | ||
| P/B | 1.88 | ||
| P/tB | 14.12 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)3.83
EY18.64%
EPS(NY)4.26
Fwd EY20.72%
FCF(TTM)0.84
FCFY4.11%
OCF(TTM)1.82
OCFY8.87%
SpS75.24
BVpS10.95
TBVpS1.46
PEG (NY)0.48
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 19.63% | ||
| ROCE | 15.66% | ||
| ROIC | 12.37% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 17.69% | ||
| OM | 7.37% | ||
| PM (TTM) | 2.86% | ||
| GM | 48.15% | ||
| FCFM | 1.12% |
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-Score5
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 27.03 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 47.54% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 23.99% | ||
| Profit Quality | 39.23% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 3.31 |
F-Score5
WACC9.81%
ROIC/WACC1.26
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)8.19%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%29.63%
EPS Next Y11.18%
EPS Next 2Y15.23%
EPS Next 3Y17.36%
EPS Next 5Y10.83%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%6.01%
Revenue Next Year6.75%
Revenue Next 2Y6.77%
Revenue Next 3Y8.39%
Revenue Next 5Y5.55%
EBIT growth 1Y5.91%
EBIT growth 3Y-10.91%
EBIT growth 5Y-2.19%
EBIT Next Year50.48%
EBIT Next 3Y23.29%
EBIT Next 5Y14.66%
FCF growth 1Y-67.02%
FCF growth 3Y-47.24%
FCF growth 5Y-24.25%
OCF growth 1Y-47.72%
OCF growth 3Y-35.61%
OCF growth 5Y-13.43%