UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
NASDAQ:UPBD - Nasdaq - US76009N1000 - Common Stock - Currency: USD
Taking everything into account, UPBD scores 5 out of 10 in our fundamental rating. UPBD was compared to 120 industry peers in the Specialty Retail industry. UPBD has an average financial health and profitability rating. UPBD is valued quite cheap, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: UPBD reported negative net income in multiple years.
Of the past 5 years UPBD 4 years had a positive operating cash flow.
1.2 Ratios
UPBD has a Return On Assets (3.15%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 13.28%, UPBD is in the better half of the industry, outperforming 70.94% of the companies in the same industry.
UPBD has a Return On Invested Capital of 12.52%. This is amongst the best in the industry. UPBD outperforms 80.34% 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 12.30%.
| Industry Rank | Sector 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.
UPBD has a better Operating Margin (7.05%) than 75.21% of its industry peers.
UPBD's Operating Margin has improved in the last couple of years.
UPBD's Gross Margin of 48.94% is fine compared to the rest of the industry. UPBD outperforms 76.92% of its industry peers.
UPBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
There is no outstanding debt for UPBD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
UPBD has an Altman-Z score of 3.40. This indicates that UPBD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.40, UPBD is doing good in the industry, outperforming 75.21% 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 (14.42) which is in line with 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 has a worse Debt to Equity ratio (2.02) than 70.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 14.42 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.18
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.08 indicates that UPBD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.08, UPBD belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
UPBD has a Quick Ratio of 2.08. This is a bad value and indicates that UPBD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.41, UPBD perfoms like the industry average, outperforming 40.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 0.41 |
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.
Measured over the past years, UPBD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.32% on average per year.
EPS 1Y (TTM)8.19%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%29.63%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.01%
3.2 Future
The Earnings Per Share is expected to grow by 9.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y17.22%
EPS Next 2Y18.03%
EPS Next 3Y11.32%
EPS Next 5Y9.96%
Revenue Next Year4.77%
Revenue Next 2Y5.52%
Revenue Next 3Y3.58%
Revenue Next 5Y3.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.93, the valuation of UPBD can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 95.73% of the companies listed in the same industry.
UPBD is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.92, which indicates a rather cheap valuation of UPBD.
UPBD's Price/Forward Earnings ratio is rather cheap when compared to the industry. UPBD is cheaper than 94.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, UPBD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.93 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPBD is valued cheaper than 82.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UPBD is valued a bit cheaper than the industry average as 73.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.96 | ||
| EV/EBITDA | 6.22 |
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.
PEG (NY)0.4
PEG (5Y)0.61
EPS Next 2Y18.03%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.36%, UPBD is a good candidate for dividend investing.
In the last 3 months the price of UPBD has falen by -21.42%. 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 4.01. UPBD pays more dividend than 92.31% of the companies in the same industry.
UPBD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
5.2 History
UPBD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of UPBD decreased 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 2Y18.03%
EPS Next 3Y11.32%
26.56
-1.08 (-3.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.76%
Inst Owner ChangeN/A
Ins Owners11.55%
Ins Owner Change6.46%
Market Cap1.45B
Analysts82.67
Price Target41.93 (57.87%)
Short Float %4.22%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP99.3%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0%
PT rev (3m)-2.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.93 | ||
| Fwd PE | 5.92 | ||
| P/S | 0.34 | ||
| P/FCF | 16.96 | ||
| P/OCF | 9.88 | ||
| P/B | 2.37 | ||
| P/tB | 25.99 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)3.83
EY14.42%
EPS(NY)4.49
Fwd EY16.9%
FCF(TTM)1.57
FCFY5.9%
OCF(TTM)2.69
OCFY10.12%
SpS77.87
BVpS11.19
TBVpS1.02
PEG (NY)0.4
PEG (5Y)0.61
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.4 |
F-Score7
WACC10.57%
ROIC/WACC1.18
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)8.19%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%29.63%
EPS Next Y17.22%
EPS Next 2Y18.03%
EPS Next 3Y11.32%
EPS Next 5Y9.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.01%
Revenue Next Year4.77%
Revenue Next 2Y5.52%
Revenue Next 3Y3.58%
Revenue Next 5Y3.47%
EBIT growth 1Y-2.8%
EBIT growth 3Y4.11%
EBIT growth 5Y21.09%
EBIT Next Year141.88%
EBIT Next 3Y42.54%
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%