Upbound Group (UPBD) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: 6.36%
• Average Volume (3M): 495.03K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.20
• Revenue Growth: 8.07%
• EPS Growth: N/A
• Country: US
• Employees: 11,970
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 1.00
• Shares Outstanding: 57,825,535
• 10 Day Avg. Volume: 604,326
• 30 Day Avg. Volume: 495,032
• PEG Ratio: 2.56
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.71
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.03
• Enterprise Value/Ebitda: 1.25
• 1Y Price Target: $36.00
• Price Target Upside: 44.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $28.00 ▲(12.40%Upside)

The overall stock score of 77 reflects Upbound Group's solid financial performance and positive earnings call sentiment. Strong cash flow generation and attractive valuation metrics further support the score. While technical indicators show mixed signals, the company's growth strategies and expansion plans contribute positively to its future prospects.

Positive Factors

Business Strategy

Upbound's strong Acima GMV/margins and core Rent-A-Center performance were much better than macro trends would imply.

Earnings

UPBD reported 1Q EPS of $1.00, above estimate of $0.92 and consensus of $0.95.

Revenue Performance

UPBD beat consensus on major revenue line in rentals & fees and merchandise sales.

Negative Factors

Cost Management

The beat in revenues was more than offset by higher cost of revenue, particularly in cost of rentals and fees and cost of merchandise sold.

Guidance

UPBD introduced initial 2025 guidance that is slightly below consensus on EPS, revenue and EBITDA.

Leadership Changes

Some investors worry that the retirement announcement of CEO Mitch Fidel, immediately following the recent Brigit acquisition and a tough consumer credit environment, implies concerns about the near-term future of Upbound.

Upbound Group Business Overview & Revenue Model

Company Description

Upbound Group, Inc. (UPBD) is a company specializing in providing consumer financial solutions, focusing on offering accessible and flexible payment options for customers seeking to purchase household durable goods. The company operates primarily in the rent-to-own sector, offering products such as electronics, appliances, furniture, and more. Through its network of retail locations and a robust online presence, Upbound Group aims to deliver value and convenience to customers who prefer alternative financial solutions to traditional credit-based purchasing.

How the Company Makes Money

Upbound Group makes money primarily through its rent-to-own business model. Customers enter into rental agreements for products such as furniture, electronics, and appliances, making periodic payments over a specified term. These payments contribute to the company's revenue streams, as they include both the cost of the product and a premium for the rental service. Key revenue streams for Upbound Group include rental income from its consumer agreements and sales revenue from both in-store and online transactions. Additionally, the company may benefit from partnerships with manufacturers and retailers to offer exclusive products or deals. The flexibility of payment options and the ability to return products without penalty are significant factors that contribute to the company's earnings, as they appeal to a customer base looking for alternatives to traditional financing.

Upbound Group Financial Statement Overview

Summary

Upbound Group shows positive financial performance with strong cash flow metrics and steady revenue growth. The company maintains a solid gross profit margin, and its effective use of equity is reflected in a good ROE. However, the low net profit margin and moderate equity ratio highlight potential risks due to high leverage and non-operating expenses.

Income Statement

The company has shown a solid gross profit margin of 39.45% and a net profit margin of 2.74% over the TTM period. Revenue growth is positive at 1.86% compared to the previous year, indicating steady growth. The EBIT margin stands at 6.87%, while the EBITDA margin is slightly higher at 6.94%. However, the net profit margin is relatively low, which may indicate challenges in controlling non-operating expenses.

Balance Sheet

The debt-to-equity ratio is 0.41, reflecting a manageable level of leverage. Return on equity (ROE) is 17.75%, indicating effective use of equity to generate profits. The equity ratio is 22.32%, showing a moderate level of equity financing. Although the company has a solid ROE, the high level of liabilities relative to equity could pose some risk.

Cash Flow

Free cash flow growth is strong at 331.09% compared to the previous year, signaling robust cash generation. The operating cash flow to net income ratio is 1.63, which indicates good cash flow relative to net income. Additionally, the free cash flow to net income ratio is 1.73, demonstrating strong cash flow generation capabilities relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.40B	4.32B	3.99B	4.25B	4.58B	2.81B
Gross Profit	1.74B	2.08B	1.28B	2.08B	2.24B	1.67B
EBITDA	305.45M	339.01M	290.54M	283.05M	435.01M	294.77M
Net Income	120.58M	123.48M	-5.18M	12.36M	134.94M	208.12M
Balance Sheet
Total Assets	3.01B	2.65B	2.72B	2.76B	2.99B	1.75B
Cash, Cash Equivalents and Short-Term Investments	123.02M	60.86M	93.70M	144.14M	108.33M	159.45M
Total Debt	1.63B	1.58B	1.60B	305.56M	296.54M	285.35M
Total Liabilities	2.26B	2.02B	2.16B	2.24B	2.48B	1.16B
Stockholders Equity	742.19M	628.98M	560.37M	525.15M	513.28M	592.08M
Cash Flow
Free Cash Flow	198.28M	48.45M	146.89M	407.07M	329.85M	201.96M
Operating Cash Flow	197.04M	104.72M	200.29M	468.46M	392.30M	236.50M
Investing Cash Flow	-315.23M	-41.51M	-50.96M	-62.33M	-1.34B	-20.61M
Financing Cash Flow	143.48M	-93.52M	-202.12M	-370.71M	892.85M	-126.68M

Upbound Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPBD, the sentiment is Positive. The current price of 24.91 is above the 20-day moving average (MA) of 24.43, above the 50-day MA of 23.23, and below the 200-day MA of 26.73, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 50.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UPBD.

Upbound Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPBD	77 Outperform	$1.42B	11.49	19.18%	6.36%	8.07%	―
FORTY	71 Outperform	$1.88B	22.41	12.47%	1.54%	3.51%	18.34%
NABL	71 Outperform	$1.47B	89.78	2.20%	―	7.98%	-40.59%
MLNK	63 Neutral	$1.24B	―	-6.49%	―	5.15%	28.27%
AMPL	63 Neutral	$1.58B	―	-32.87%	―	8.56%	-4.21%
VYX	52 Neutral	$1.60B	―	-19.49%	―	-50.48%	-15.75%
Sector *	49 Neutral	C$2.89B	2.45	-80.91%	2.94%	6.72%	-18.96%

Upbound Group Corporate Events

Upbound Group Holds 2025 Annual Stockholders Meeting

On June 3, 2025, Upbound Group, Inc. held its 2025 Annual Meeting of Stockholders where three key proposals were voted on. The stockholders elected or re-elected directors, ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025, and approved the compensation for named executive officers for 2024. These decisions reinforce the company’s governance structure and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (UPBD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Upbound Group stock, see the UPBD Stock Forecast page.

Upbound Group Reports Q1 2025 Financial Results

On May 1, 2025, Upbound Group, Inc. reported its financial results for the first quarter ending March 31, 2025, with a total revenue of $1,176 million. The company achieved a GAAP diluted EPS of $0.42 and a non-GAAP diluted EPS of $1.00. These results reflect the company’s strategic focus on leveraging technology and data to cater to the evolving needs of underserved consumers, potentially enhancing its market position and providing valuable insights for stakeholders.