UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
NASDAQ:UPBD - Nasdaq - US76009N1000 - Common Stock - Currency: USD
UPBD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of UPBD get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on UPBD.
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.
Of the past 5 years UPBD 4 years were profitable.
UPBD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UPBD (4.66%) is better than 66.94% of its industry peers.
The Return On Equity of UPBD (19.63%) is better than 77.69% of its industry peers.
UPBD's Return On Invested Capital of 12.37% is amongst the best of the industry. UPBD outperforms 80.17% 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 13.08%.
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
Looking at the Profit Margin, with a value of 2.86%, UPBD is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
UPBD's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.37%, UPBD is doing good in the industry, outperforming 76.03% of the companies in the same industry.
UPBD's Operating Margin has declined in the last couple of years.
UPBD has a better Gross Margin (48.15%) than 75.21% of its industry peers.
In the last couple of years the Gross Margin of UPBD has declined.
| 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
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.
UPBD has about the same amout of shares outstanding than it did 5 years ago.
UPBD has a worse debt/assets ratio than last year.
2.2 Solvency
UPBD has an Altman-Z score of 3.37. This indicates that UPBD is financially healthy and has little risk of bankruptcy at the moment.
UPBD has a Altman-Z score of 3.37. This is in the better half of the industry: UPBD outperforms 76.86% of its industry peers.
UPBD has a debt to FCF ratio of 27.03. This is a negative value and a sign of low solvency as UPBD would need 27.03 years to pay back of 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 has a worse Debt to Equity ratio (2.08) than 70.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 27.03 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.26
WACC9.82%
2.3 Liquidity
A Current Ratio of 2.38 indicates that UPBD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.38, UPBD belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
UPBD has a Quick Ratio of 2.38. This is a bad value and indicates that UPBD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.35, UPBD is doing worse than 71.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.43% over the past year.
UPBD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.32% yearly.
UPBD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.22%.
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)8.22%
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 10.83% on average per year.
Based on estimates for the next years, UPBD will show a small growth in Revenue. The Revenue will grow by 5.55% 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
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
Based on the Price/Earnings ratio of 5.98, the valuation of UPBD can be described as very cheap.
95.04% 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 28.22, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.75, the valuation of UPBD can be described as very cheap.
96.69% of the companies in the same industry are more expensive than UPBD, based on the Price/Forward Earnings ratio.
UPBD is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 4.75 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as UPBD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.84 | ||
| EV/EBITDA | 6.06 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UPBD's earnings are expected to grow with 17.36% in the coming years.
PEG (NY)0.53
PEG (5Y)0.53
EPS Next 2Y15.23%
EPS Next 3Y17.36%
5. Dividend
5.1 Amount
UPBD has a Yearly Dividend Yield of 6.58%, which is a nice return.
Compared to an average industry Dividend Yield of 5.48, UPBD pays a better dividend. On top of this UPBD pays more dividend than 94.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
On average, the dividend of UPBD grows each year by 42.90%, which is quite nice.
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%
24.16
+0.46 (+1.94%)
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 Change17.54%
Market Cap1.40B
Analysts82.67
Price Target39.21 (62.29%)
Short Float %5.71%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
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)-3.62%
PT rev (3m)-6.49%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 4.75 | ||
| P/S | 0.32 | ||
| P/FCF | 28.84 | ||
| P/OCF | 13.34 | ||
| P/B | 2.22 | ||
| P/tB | 16.72 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)4.04
EY16.72%
EPS(NY)5.09
Fwd EY21.05%
FCF(TTM)0.84
FCFY3.47%
OCF(TTM)1.81
OCFY7.5%
SpS74.71
BVpS10.88
TBVpS1.44
PEG (NY)0.53
PEG (5Y)0.53
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 | 3.37 |
F-Score5
WACC9.82%
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)15.43%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%26.58%
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%7.34%
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%