UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
NASDAQ:UPBD - Nasdaq - US76009N1000 - Common Stock - Currency: USD
Overall UPBD gets a fundamental rating of 5 out of 10. We evaluated UPBD against 121 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. Finally 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.
Of the past 5 years UPBD 4 years were profitable.
In the past 5 years UPBD always reported a positive cash flow from operatings.
1.2 Ratios
UPBD has a better Return On Assets (3.96%) than 63.64% of its industry peers.
UPBD has a better Return On Equity (17.75%) than 76.03% of its industry peers.
UPBD's Return On Invested Capital of 10.94% is fine compared to the rest of the industry. UPBD outperforms 76.03% 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 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 17.75% | ||
| ROIC | 10.94% |
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
With a decent Profit Margin value of 2.74%, UPBD is doing good in the industry, outperforming 66.94% of the companies in the same industry.
UPBD's Profit Margin has declined in the last couple of years.
UPBD has a better Operating Margin (7.12%) than 76.86% of its industry peers.
In the last couple of years the Operating Margin of UPBD has declined.
The Gross Margin of UPBD (47.75%) is better than 76.03% of its industry peers.
In the last couple of years the Gross Margin of UPBD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.12% | ||
| PM (TTM) | 2.74% | ||
| GM | 47.75% |
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.
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.
UPBD has a worse debt/assets ratio than last year.
2.2 Solvency
UPBD has an Altman-Z score of 2.93. 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.
The Altman-Z score of UPBD (2.93) is better than 66.12% of its industry peers.
UPBD has a debt to FCF ratio of 10.79. This is a negative value and a sign of low solvency as UPBD would need 10.79 years to pay back of all of its debts.
The Debt to FCF ratio of UPBD (10.79) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.26 is on the high side and indicates that UPBD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.26, UPBD is doing worse than 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 10.79 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.1
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.88 indicates that UPBD should not have too much problems paying its short term obligations.
UPBD's Current ratio of 1.88 is amongst the best of the industry. UPBD outperforms 80.17% of its industry peers.
A Quick Ratio of 0.37 indicates that UPBD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, UPBD is doing worse than 62.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| 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 15.43%, which is quite good.
The Earnings Per Share has been growing by 11.32% on average over the past years. This is quite good.
UPBD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.07%.
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)15.43%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%26.58%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%7.34%
3.2 Future
The Earnings Per Share is expected to grow by 11.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y12.06%
EPS Next 2Y16.89%
EPS Next 3Y18.26%
EPS Next 5Y11.36%
Revenue Next Year8.46%
Revenue Next 2Y8.08%
Revenue Next 3Y8.15%
Revenue Next 5Y5.62%
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 6.49.
Based on the Price/Earnings ratio, UPBD is valued cheaply inside the industry as 94.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UPBD to the average of the S&P500 Index (27.30), we can say UPBD is valued rather cheaply.
The Price/Forward Earnings ratio is 5.01, which indicates a rather cheap valuation of UPBD.
Based on the Price/Forward Earnings ratio, UPBD is valued cheaper than 94.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, UPBD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 5.01 |
4.2 Price Multiples
74.38% of the companies in the same industry are more expensive than UPBD, based on the Enterprise Value to EBITDA ratio.
83.47% of the companies in the same industry are more expensive than UPBD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 6.95 |
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 18.26% in the coming years.
PEG (NY)0.54
PEG (5Y)0.57
EPS Next 2Y16.89%
EPS Next 3Y18.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.92%, UPBD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.99, UPBD pays a better dividend. On top of this UPBD pays more dividend than 94.21% of the companies listed in the same industry.
UPBD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.92% |
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
68.17% 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.
DP68.17%
EPS Next 2Y16.89%
EPS Next 3Y18.26%
26.22
-0.62 (-2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners83.82%
Inst Owner ChangeN/A
Ins Owners8.38%
Ins Owner Change17.37%
Market Cap1.52B
Analysts82.86
Price Target36.72 (40.05%)
Short Float %5.92%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.92% |
Yearly Dividend1.51
Dividend Growth(5Y)42.9%
DP68.17%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.6%
Min EPS beat(2)-0.12%
Max EPS beat(2)3.33%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-1.18%
Max EPS beat(4)3.33%
EPS beat(8)6
Avg EPS beat(8)6.79%
EPS beat(12)10
Avg EPS beat(12)9.12%
EPS beat(16)12
Avg EPS beat(16)5.82%
Revenue beat(2)1
Avg Revenue beat(2)1.11%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)2.29%
Revenue beat(4)3
Avg Revenue beat(4)1.23%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.29%
Revenue beat(8)5
Avg Revenue beat(8)0.66%
Revenue beat(12)6
Avg Revenue beat(12)0.21%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)-5.26%
PT rev (3m)-9.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.49 | ||
| Fwd PE | 5.01 | ||
| P/S | 0.34 | ||
| P/FCF | 10.68 | ||
| P/OCF | 7.7 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.95 |
EPS(TTM)4.04
EY15.41%
EPS(NY)5.23
Fwd EY19.96%
FCF(TTM)2.46
FCFY9.37%
OCF(TTM)3.41
OCFY12.99%
SpS76.1
BVpS11.74
TBVpS-3.51
PEG (NY)0.54
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 17.75% | ||
| ROCE | 13.85% | ||
| ROIC | 10.94% | ||
| ROICexc | 11.49% | ||
| ROICexgc | 19.52% | ||
| OM | 7.12% | ||
| PM (TTM) | 2.74% | ||
| GM | 47.75% | ||
| FCFM | 3.23% |
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 | 2.26 | ||
| Debt/FCF | 10.79 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 47.88% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.98% | ||
| Profit Quality | 117.76% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.93 |
F-Score4
WACC9.99%
ROIC/WACC1.1
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)15.43%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%26.58%
EPS Next Y12.06%
EPS Next 2Y16.89%
EPS Next 3Y18.26%
EPS Next 5Y11.36%
Revenue 1Y (TTM)8.07%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%7.34%
Revenue Next Year8.46%
Revenue Next 2Y8.08%
Revenue Next 3Y8.15%
Revenue Next 5Y5.62%
EBIT growth 1Y6.88%
EBIT growth 3Y-10.91%
EBIT growth 5Y-2.19%
EBIT Next Year50.85%
EBIT Next 3Y24.76%
EBIT Next 5Y14.57%
FCF growth 1Y-54.79%
FCF growth 3Y-47.24%
FCF growth 5Y-24.25%
OCF growth 1Y-46.54%
OCF growth 3Y-35.61%
OCF growth 5Y-13.43%