UPBOUND GROUP INC (UPBD)
US76009N1000 - Common Stock
We assign a fundamental rating of 5 out of 10 to UPBD. UPBD was compared to 125 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. UPBD is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years UPBD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.94%, UPBD is in line with its industry, outperforming 47.62% of the companies in the same industry.
UPBD has a Return On Equity (-4.28%) which is in line with its industry peers.
UPBD's Return On Invested Capital of 12.13% is fine compared to the rest of the industry. UPBD outperforms 78.57% 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 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.94% | ||
| ROE | -4.28% | ||
| ROIC | 12.13% |
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 Operating Margin of 7.20%. This is in the better half of the industry: UPBD outperforms 75.40% of its industry peers.
UPBD's Operating Margin has improved in the last couple of years.
UPBD has a Gross Margin of 50.22%. This is in the better half of the industry: UPBD outperforms 78.57% of its industry peers.
UPBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.2% | ||
| PM (TTM) | N/A | ||
| GM | 50.22% |
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.
Compared to 1 year ago, UPBD has less shares outstanding
UPBD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UPBD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.30 indicates that UPBD is not in any danger for bankruptcy at the moment.
The Altman-Z score of UPBD (3.30) is better than 70.63% of its industry peers.
UPBD has a debt to FCF ratio of 15.24. This is a negative value and a sign of low solvency as UPBD would need 15.24 years to pay back of all of its debts.
UPBD has a Debt to FCF ratio (15.24) which is comparable to the rest of the industry.
UPBD has a Debt/Equity ratio of 2.23. This is a high value indicating a heavy dependency on external financing.
UPBD has a Debt to Equity ratio of 2.23. This is in the lower half of the industry: UPBD underperforms 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 15.24 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.31
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.99 indicates that UPBD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.99, UPBD is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
UPBD has a Quick Ratio of 1.99. 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 0.33, UPBD is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
UPBD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.41%.
The Earnings Per Share has been growing by 28.01% on average over the past years. This is a very strong growth
UPBD shows a decrease in Revenue. In the last year, the revenue decreased by -0.72%.
The Revenue has been growing by 8.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.41%
EPS 3Y0%
EPS 5Y28.01%
EPS growth Q2Q-4.82%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y12.36%
Revenue growth 5Y8.46%
Revenue growth Q2Q7.86%
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 9.24% on average per year.
UPBD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y8.67%
EPS Next 2Y12.12%
EPS Next 3Y8.56%
EPS Next 5Y9.24%
Revenue Next Year4.27%
Revenue Next 2Y4.19%
Revenue Next 3Y2.88%
Revenue Next 5Y3.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
UPBD is valuated reasonably with a Price/Earnings ratio of 9.31.
UPBD's Price/Earnings ratio is rather cheap when compared to the industry. UPBD is cheaper than 88.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, UPBD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.32, the valuation of UPBD can be described as very cheap.
94.44% 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 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
UPBD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UPBD is cheaper than 72.22% of the companies in the same industry.
UPBD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UPBD is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.03 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
UPBD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)0.33
EPS Next 2Y12.12%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
UPBD has a Yearly Dividend Yield of 4.51%, which is a nice return.
Compared to an average industry Dividend Yield of 3.25, UPBD pays a better dividend. On top of this UPBD pays more dividend than 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, UPBD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
UPBD has been paying a dividend for at least 10 years, so it has 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-319.16%
EPS Next 2Y12.12%
EPS Next 3Y8.56%
UPBOUND GROUP INC
NASDAQ:UPBD (5/17/2024, 7:00:01 PM)
After market: 32.58 0 (0%)32.58
-0.25 (-0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 7.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.07
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.94% | ||
| ROE | -4.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.2% | ||
| PM (TTM) | N/A | ||
| GM | 50.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.41%
EPS 3Y0%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y12.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y