UPBOUND GROUP INC (UPBD) Stock Fundamental Analysis
USA - NASDAQ:UPBD - US76009N1000 - Common Stock
23.63 USD
-0.6 (-2.48%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally UPBD also has an excellent dividend rating.
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.
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 3.30%. This is in the better half of the industry: UPBD outperforms 63.11% of its industry peers.
With a decent Return On Equity value of 14.90%, UPBD is doing good in the industry, outperforming 73.77% of the companies in the same industry.
UPBD has a better Return On Invested Capital (10.72%) than 74.59% 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 11.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 14.9% | ||
| ROIC | 10.72% |
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
UPBD has a Profit Margin of 2.28%. This is in the better half of the industry: UPBD outperforms 62.30% of its industry peers.
In the last couple of years the Profit Margin of UPBD has declined.
Looking at the Operating Margin, with a value of 6.93%, UPBD is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
UPBD's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 47.78%, UPBD is doing good in the industry, outperforming 74.59% of the companies in the same industry.
In the last couple of years the Gross Margin of UPBD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 2.28% | ||
| GM | 47.78% |
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
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 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 2.86. 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.
UPBD's Altman-Z score of 2.86 is fine compared to the rest of the industry. UPBD outperforms 63.11% of its industry peers.
The Debt to FCF ratio of UPBD is 11.96, which is on the high side as it means it would take UPBD, 11.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.96, UPBD is in line with its industry, outperforming 54.92% of the companies in the same industry.
UPBD has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
UPBD has a worse Debt to Equity ratio (2.29) than 72.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.05
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.85 indicates that UPBD should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.85, UPBD belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
UPBD has a Quick Ratio of 1.85. This is a bad value and indicates that UPBD is not financially healthy enough and could expect problems in meeting 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 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.12% 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.
The Revenue has been growing slightly by 7.49% in the past year.
UPBD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.11% yearly.
EPS 1Y (TTM)20.12%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%7.69%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%7.53%
3.2 Future
The Earnings Per Share is expected to grow by 12.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.64% on average over the next years.
EPS Next Y13.03%
EPS Next 2Y17.39%
EPS Next 3Y19.33%
EPS Next 5Y12.31%
Revenue Next Year8.34%
Revenue Next 2Y8.39%
Revenue Next 3Y8.24%
Revenue Next 5Y5.64%
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.
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
Based on the Price/Earnings ratio of 5.74, the valuation of UPBD can be described as very cheap.
UPBD's Price/Earnings ratio is rather cheap when compared to the industry. UPBD is cheaper than 97.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. UPBD is valued rather cheaply when compared to this.
UPBD is valuated cheaply with a Price/Forward Earnings ratio of 4.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UPBD indicates a rather cheap valuation: UPBD is cheaper than 100.00% of the companies listed in the same industry.
UPBD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 4.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPBD is valued a bit cheaper than 75.41% of the companies in the same industry.
84.43% 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 | 10.45 | ||
| EV/EBITDA | 6.65 |
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 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)0.51
EPS Next 2Y17.39%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.51%, UPBD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.56, UPBD pays a better dividend. On top of this UPBD pays more dividend than 95.90% of the companies listed in the same industry.
UPBD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
5.2 History
The dividend of UPBD is nicely growing with an annual growth rate of 42.90%!
UPBD has paid a dividend for at least 10 years, which is 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 82.29% 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.
DP82.29%
EPS Next 2Y17.39%
EPS Next 3Y19.33%
NASDAQ:UPBD (9/30/2025, 9:57:45 AM)
23.63
-0.6 (-2.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners85.89%
Inst Owner ChangeN/A
Ins Owners8.35%
Ins Owner Change-1%
Market Cap1.37B
Analysts82.86
Price Target35.19 (48.92%)
Short Float %6.6%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
Yearly Dividend1.51
Dividend Growth(5Y)42.9%
DP82.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.66%
Min EPS beat(2)3.33%
Max EPS beat(2)3.99%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-0.12%
Max EPS beat(4)3.99%
EPS beat(8)6
Avg EPS beat(8)1.62%
EPS beat(12)10
Avg EPS beat(12)8.31%
EPS beat(16)12
Avg EPS beat(16)4.93%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)2.29%
Revenue beat(8)5
Avg Revenue beat(8)0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)7
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)-4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 4.48 | ||
| P/S | 0.31 | ||
| P/FCF | 10.45 | ||
| P/OCF | 7.21 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.65 |
EPS(TTM)4.12
EY17.44%
EPS(NY)5.28
Fwd EY22.34%
FCF(TTM)2.26
FCFY9.57%
OCF(TTM)3.28
OCFY13.87%
SpS77.41
BVpS11.84
TBVpS-3.11
PEG (NY)0.44
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 14.9% | ||
| ROCE | 13.57% | ||
| ROIC | 10.72% | ||
| ROICexc | 11.25% | ||
| ROICexgc | 18.72% | ||
| OM | 6.93% | ||
| PM (TTM) | 2.28% | ||
| GM | 47.78% | ||
| FCFM | 2.92% |
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 | 2.29 | ||
| Debt/FCF | 11.96 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 49.05% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.09% | ||
| Profit Quality | 128.24% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.86 |
F-Score4
WACC10.26%
ROIC/WACC1.05
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)20.12%
EPS 3Y-11.63%
EPS 5Y11.32%
EPS Q2Q%7.69%
EPS Next Y13.03%
EPS Next 2Y17.39%
EPS Next 3Y19.33%
EPS Next 5Y12.31%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.95%
Revenue growth 5Y10.11%
Sales Q2Q%7.53%
Revenue Next Year8.34%
Revenue Next 2Y8.39%
Revenue Next 3Y8.24%
Revenue Next 5Y5.64%
EBIT growth 1Y8.26%
EBIT growth 3Y-10.91%
EBIT growth 5Y-2.19%
EBIT Next Year50.49%
EBIT Next 3Y25.59%
EBIT Next 5Y15.07%
FCF growth 1Y-51.77%
FCF growth 3Y-47.24%
FCF growth 5Y-24.25%
OCF growth 1Y-41.31%
OCF growth 3Y-35.61%
OCF growth 5Y-13.43%