UPBOUND GROUP INC (UPBD)

US76009N1000 - Common Stock

30.15  +0.74 (+2.52%)

After market: 30.15 0 (0%)

Fundamental Rating

5

UPBD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. UPBD has only an average score on both its financial health and profitability. UPBD may be a bit undervalued, certainly considering the very reasonable score on growth



6

1. Profitability

1.1 Basic Checks

UPBD had positive earnings in the past year.
In the past year UPBD had a positive cash flow from operations.
UPBD had positive earnings in 4 of the past 5 years.
In the past 5 years UPBD always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of UPBD (3.15%) is better than 60.83% of its industry peers.
UPBD has a better Return On Equity (13.28%) than 71.67% of its industry peers.
UPBD's Return On Invested Capital of 12.52% is amongst the best of the industry. UPBD outperforms 81.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UPBD is in line with the industry average of 12.29%.
Industry RankSector Rank
ROA 3.15%
ROE 13.28%
ROIC 12.52%
ROA(3y)1.59%
ROA(5y)5.52%
ROE(3y)9.24%
ROE(5y)20.13%
ROIC(3y)13.01%
ROIC(5y)18.02%

1.3 Margins

UPBD has a Profit Margin (1.91%) which is comparable to the rest of the industry.
With a decent Operating Margin value of 7.05%, UPBD is doing good in the industry, outperforming 75.83% of the companies in the same industry.
UPBD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.94%, UPBD is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
UPBD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 7.05%
PM (TTM) 1.91%
GM 48.94%
OM growth 3Y-7.35%
OM growth 5Y11.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.18%
GM growth 5Y-4.41%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UPBD is creating some value.
UPBD has less shares outstanding than it did 1 year ago.
UPBD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UPBD has an improved debt to assets ratio.

2.2 Solvency

UPBD has an Altman-Z score of 3.44. This indicates that UPBD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.44, UPBD is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
UPBD has a debt to FCF ratio of 14.42. This is a negative value and a sign of low solvency as UPBD would need 14.42 years to pay back of all of its debts.
UPBD has a Debt to FCF ratio of 14.42. This is comparable to the rest of the industry: UPBD outperforms 47.50% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that UPBD has dependencies on debt financing.
UPBD's Debt to Equity ratio of 2.02 is on the low side compared to the rest of the industry. UPBD is outperformed by 70.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.02
Debt/FCF 14.42
Altman-Z 3.44
ROIC/WACC1.21
WACC10.38%

2.3 Liquidity

A Current Ratio of 2.08 indicates that UPBD has no problem at all paying its short term obligations.
UPBD has a better Current ratio (2.08) than 80.00% of its industry peers.
A Quick Ratio of 0.41 indicates that UPBD may have some problems paying its short term obligations.
The Quick ratio of UPBD (0.41) is worse than 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.08
Quick Ratio 0.41

5

3. Growth

3.1 Past

UPBD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
UPBD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.01% yearly.
The Revenue has been growing slightly by 7.43% in the past year.
The Revenue has been growing by 8.46% on average over the past years. This is quite good.
EPS 1Y (TTM)0%
EPS 3Y0%
EPS 5Y28.01%
EPS Q2Q%20.25%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y12.36%
Revenue growth 5Y8.46%
Sales Q2Q%9.17%

3.2 Future

The Earnings Per Share is expected to grow by 9.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y9.7%
EPS Next 2Y12.61%
EPS Next 3Y14.72%
EPS Next 5Y9.61%
Revenue Next Year8.35%
Revenue Next 2Y6.52%
Revenue Next 3Y6.39%
Revenue Next 5Y4.43%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.40, the valuation of UPBD can be described as very reasonable.
94.17% of the companies in the same industry are more expensive than UPBD, based on the Price/Earnings ratio.
UPBD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 6.72, the valuation of UPBD can be described as very cheap.
93.33% of the companies in the same industry are more expensive than UPBD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, UPBD is valued rather cheaply.
Industry RankSector Rank
PE 8.4
Fwd PE 6.72

4.2 Price Multiples

85.00% of the companies in the same industry are more expensive than UPBD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UPBD is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.25
EV/EBITDA 6.54

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.
A more expensive valuation may be justified as UPBD's earnings are expected to grow with 14.72% in the coming years.
PEG (NY)0.87
PEG (5Y)0.3
EPS Next 2Y12.61%
EPS Next 3Y14.72%

5

5. Dividend

5.1 Amount

UPBD has a Yearly Dividend Yield of 5.30%, which is a nice return.
UPBD's Dividend Yield is rather good when compared to the industry average which is at 3.46. UPBD pays more dividend than 94.17% 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 RankSector Rank
Dividend Yield 5.3%

5.2 History

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)N/A
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

UPBD pays out 99.30% of its income as dividend. This is not a sustainable payout ratio.
DP99.3%
EPS Next 2Y12.61%
EPS Next 3Y14.72%

UPBOUND GROUP INC

NASDAQ:UPBD (12/20/2024, 8:00:01 PM)

After market: 30.15 0 (0%)

30.15

+0.74 (+2.52%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners92.76%
Inst Owner ChangeN/A
Ins Owners11.55%
Ins Owner Change-4.37%
Market Cap1.65B
Analysts82.67
Price Target41.71 (38.34%)
Short Float %4.36%
Short Ratio5.19
Dividend
Industry RankSector Rank
Dividend Yield 5.3%
Dividend Growth(5Y)N/A
DP99.3%
Div Incr Years2
Div Non Decr Years2
Ex-Date12-18 2024-12-18 (0.39)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.36%
Min EPS beat(2)-1.18%
Max EPS beat(2)0.46%
EPS beat(4)3
Avg EPS beat(4)0.67%
Min EPS beat(4)-1.18%
Max EPS beat(4)2.63%
EPS beat(8)7
Avg EPS beat(8)11.13%
EPS beat(12)10
Avg EPS beat(12)6.23%
EPS beat(16)12
Avg EPS beat(16)6.52%
Revenue beat(2)2
Avg Revenue beat(2)1.34%
Min Revenue beat(2)0.65%
Max Revenue beat(2)2.04%
Revenue beat(4)4
Avg Revenue beat(4)1.35%
Min Revenue beat(4)0.4%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)0.17%
Revenue beat(12)6
Avg Revenue beat(12)-0.16%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)-2.65%
PT rev (3m)-3.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
Industry RankSector Rank
PE 8.4
Fwd PE 6.72
P/S 0.39
P/FCF 19.25
P/OCF 11.21
P/B 2.7
P/tB 29.5
EV/EBITDA 6.54
EPS(TTM)3.59
EY11.91%
EPS(NY)4.49
Fwd EY14.89%
FCF(TTM)1.57
FCFY5.19%
OCF(TTM)2.69
OCFY8.92%
SpS77.87
BVpS11.19
TBVpS1.02
PEG (NY)0.87
PEG (5Y)0.3
Profitability
Industry RankSector Rank
ROA 3.15%
ROE 13.28%
ROCE 15.85%
ROIC 12.52%
ROICexc 13.11%
ROICexgc 19.01%
OM 7.05%
PM (TTM) 1.91%
GM 48.94%
FCFM 2.01%
ROA(3y)1.59%
ROA(5y)5.52%
ROE(3y)9.24%
ROE(5y)20.13%
ROIC(3y)13.01%
ROIC(5y)18.02%
ROICexc(3y)13.75%
ROICexc(5y)19.72%
ROICexgc(3y)20.5%
ROICexgc(5y)25.02%
ROCE(3y)16.47%
ROCE(5y)22.81%
ROICexcg growth 3Y-12.34%
ROICexcg growth 5Y9.44%
ROICexc growth 3Y-19.97%
ROICexc growth 5Y3.07%
OM growth 3Y-7.35%
OM growth 5Y11.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.18%
GM growth 5Y-4.41%
F-Score7
Asset Turnover1.65
Health
Industry RankSector Rank
Debt/Equity 2.02
Debt/FCF 14.42
Debt/EBITDA 2.89
Cap/Depr 48.14%
Cap/Sales 1.44%
Interest Coverage 250
Cash Conversion 34.37%
Profit Quality 105.44%
Current Ratio 2.08
Quick Ratio 0.41
Altman-Z 3.44
F-Score7
WACC10.38%
ROIC/WACC1.21
Cap/Depr(3y)40.89%
Cap/Depr(5y)43.62%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y0%
EPS 5Y28.01%
EPS Q2Q%20.25%
EPS Next Y9.7%
EPS Next 2Y12.61%
EPS Next 3Y14.72%
EPS Next 5Y9.61%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y12.36%
Revenue growth 5Y8.46%
Sales Q2Q%9.17%
Revenue Next Year8.35%
Revenue Next 2Y6.52%
Revenue Next 3Y6.39%
Revenue Next 5Y4.43%
EBIT growth 1Y-2.8%
EBIT growth 3Y4.11%
EBIT growth 5Y21.09%
EBIT Next Year141.77%
EBIT Next 3Y41.19%
EBIT Next 5Y23.9%
FCF growth 1Y-79.22%
FCF growth 3Y-10.08%
FCF growth 5Y-5.94%
OCF growth 1Y-69.25%
OCF growth 3Y-5.39%
OCF growth 5Y-2.52%