UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
NASDAQ:UPBD - Nasdaq - US76009N1000 - Common Stock - Currency: USD
UPBD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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 may be a bit undervalued, certainly considering the very reasonable score on growth UPBD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UPBD was profitable.
In the past year UPBD had a positive cash flow from operations.
UPBD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years UPBD had a positive operating cash flow.
1.2 Ratios
UPBD has a Return On Assets of 3.96%. This is in the better half of the industry: UPBD outperforms 63.93% of its industry peers.
The Return On Equity of UPBD (17.75%) is better than 76.23% of its industry peers.
UPBD has a better Return On Invested Capital (10.94%) than 76.23% 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 12.95%.
| 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 66.39% 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 77.05% of its industry peers.
In the last couple of years the Operating Margin of UPBD has declined.
UPBD's Gross Margin of 47.75% is fine compared to the rest of the industry. UPBD outperforms 75.41% of its industry peers.
UPBD's Gross Margin has declined in the last couple of years.
| 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
UPBD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for UPBD has been increased compared to 1 year ago.
Compared to 5 years ago, UPBD has about the same amount of shares outstanding.
Compared to 1 year ago, UPBD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.89 indicates that UPBD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.89, UPBD is doing good in the industry, outperforming 64.75% of the companies in the same industry.
The Debt to FCF ratio of UPBD is 10.79, which is on the high side as it means it would take UPBD, 10.79 years of fcf income to pay off all of its debts.
UPBD's Debt to FCF ratio of 10.79 is in line compared to the rest of the industry. UPBD outperforms 54.10% of its industry peers.
UPBD has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.26, UPBD is doing worse than 70.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 10.79 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.08
WACC10.09%
2.3 Liquidity
A Current Ratio of 1.88 indicates that UPBD should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.88, UPBD belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that UPBD may have some problems paying its short term obligations.
UPBD's Quick ratio of 0.37 is on the low side compared to the rest of the industry. UPBD is outperformed by 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.43% over the past year.
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.
UPBD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.07%.
Measured over the past years, UPBD shows a quite strong growth in Revenue. The Revenue has been growing by 10.11% on average per year.
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
Based on estimates for the next years, UPBD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.36% on average per year.
Based on estimates for the next years, UPBD will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y12.06%
EPS Next 2Y16.88%
EPS Next 3Y18.26%
EPS Next 5Y11.36%
Revenue Next Year8.44%
Revenue Next 2Y8.08%
Revenue Next 3Y8.15%
Revenue Next 5Y5.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.05 indicates a rather cheap valuation of UPBD.
95.90% of the companies in the same industry are more expensive than UPBD, based on the Price/Earnings ratio.
UPBD is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.67, the valuation of UPBD can be described as very cheap.
UPBD's Price/Forward Earnings ratio is rather cheap when compared to the industry. UPBD is cheaper than 95.90% 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 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 4.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPBD is valued a bit cheaper than 76.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UPBD is valued cheaply inside the industry as 84.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 6.64 |
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.
UPBD's earnings are expected to grow with 18.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.53
EPS Next 2Y16.88%
EPS Next 3Y18.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.81%, UPBD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.90, UPBD pays a better dividend. On top of this UPBD pays more dividend than 93.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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.
UPBD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.17%
EPS Next 2Y16.88%
EPS Next 3Y18.26%
24.43
-0.15 (-0.61%)
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 Cap1.41B
Analysts82.86
Price Target36.72 (50.31%)
Short Float %6.49%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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)0%
PT rev (3m)-9.75%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.05 | ||
| Fwd PE | 4.67 | ||
| P/S | 0.32 | ||
| P/FCF | 9.95 | ||
| P/OCF | 7.17 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)4.04
EY16.54%
EPS(NY)5.23
Fwd EY21.42%
FCF(TTM)2.46
FCFY10.05%
OCF(TTM)3.41
OCFY13.95%
SpS76.1
BVpS11.74
TBVpS-3.51
PEG (NY)0.5
PEG (5Y)0.53
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 | 2.89 |
F-Score4
WACC10.09%
ROIC/WACC1.08
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 2Y16.88%
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 Year8.44%
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%