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 120 industry peers in the Specialty Retail industry. While UPBD is still in line with the averages on profitability rating, there are concerns on its financial health. UPBD is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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
With a decent Return On Assets value of 3.96%, UPBD is doing good in the industry, outperforming 63.33% of the companies in the same industry.
UPBD's Return On Equity of 17.75% is fine compared to the rest of the industry. UPBD outperforms 75.00% of its industry peers.
UPBD has a better Return On Invested Capital (10.94%) than 75.00% 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 13.32%.
| 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
Looking at the Profit Margin, with a value of 2.74%, UPBD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of UPBD has declined.
UPBD has a better Operating Margin (7.12%) than 75.00% of its industry peers.
UPBD's Operating Margin has declined in the last couple of years.
UPBD has a better Gross Margin (47.75%) than 75.83% 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
UPBD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UPBD has more shares outstanding
The number of shares outstanding for UPBD remains at a similar level compared to 5 years ago.
The debt/assets ratio for UPBD is higher compared to a year ago.
2.2 Solvency
UPBD has an Altman-Z score of 2.91. 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.
With a decent Altman-Z score value of 2.91, UPBD is doing good in the industry, outperforming 69.17% of the companies in the same industry.
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.
UPBD has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of UPBD (2.26) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 10.79 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.09
WACC10.02%
2.3 Liquidity
A Current Ratio of 1.88 indicates that UPBD should not have too much problems paying its short term obligations.
UPBD has a better Current ratio (1.88) than 80.83% of its industry peers.
UPBD has a Quick Ratio of 1.88. This is a bad value and indicates that UPBD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of UPBD (0.37) is worse than 63.33% of its industry peers.
| 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%.
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
The Earnings Per Share is expected to grow by 11.36% on average over the next years. This is quite good.
UPBD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
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
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
With a Price/Earnings ratio of 6.05, the valuation of UPBD can be described as very cheap.
Based on the Price/Earnings ratio, UPBD is valued cheaper than 93.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. UPBD is valued rather cheaply when compared to this.
UPBD is valuated cheaply with a Price/Forward Earnings ratio of 4.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 91.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. UPBD is valued rather cheaply when compared to this.
| 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 the industry average as 75.00% of the companies are valued more expensively.
80.00% 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 | 9.95 | ||
| EV/EBITDA | 6.82 |
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.
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 2Y16.89%
EPS Next 3Y18.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.02%, UPBD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.19, UPBD pays a better dividend. On top of this UPBD pays more dividend than 94.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
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
UPBD pays out 68.17% of its income as dividend. 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%
24.44
-1.46 (-5.64%)
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 Change17.54%
Market Cap1.41B
Analysts82.86
Price Target36.72 (50.25%)
Short Float %5.99%
Short Ratio5.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
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)-2.11%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.52%
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 | 6.82 |
EPS(TTM)4.04
EY16.53%
EPS(NY)5.23
Fwd EY21.41%
FCF(TTM)2.46
FCFY10.05%
OCF(TTM)3.41
OCFY13.94%
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 | 2.91 |
F-Score4
WACC10.02%
ROIC/WACC1.09
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%