Upbound Group (UPBD) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: 8.8%
• Average Volume (3M): 771.91K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.22
• Revenue Growth: 7.48%
• EPS Growth: 2.05%
• Country: US
• Employees: 11,970
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.00
• Shares Outstanding: 57,905,730
• 10 Day Avg. Volume: 938,856
• 30 Day Avg. Volume: 771,911
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 32.91
• Enterprise Value/Market Cap: 3.11
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 3.18
• 1Y Price Target: $29.50
• Price Target Upside: 61.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.09
• Revenue Forecast (FY): $4.68B

• Rating: 65 Neutral
• Price Target: $19.50 ▲(6.97% Upside)

Upbound Group's overall score reflects a stable financial position with attractive valuation metrics. Despite strong revenue growth in certain segments, challenges such as low net profit margin and bearish technical indicators weigh on the score. The earnings call provided a balanced view with both growth highlights and operational challenges.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for Upbound's solutions, supporting long-term business expansion and market presence.

Executive Leadership

New leadership appointments are expected to enhance strategic direction and operational efficiency, supporting future growth initiatives.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for investments and debt management, enhancing long-term stability.

Negative Factors

Net Profit Margin

Low net profit margins suggest difficulties in cost management, potentially impacting profitability and shareholder returns.

Acima Margin Challenges

Declining margins at Acima could pressure overall profitability and require strategic adjustments to maintain financial health.

Macroeconomic Challenges

Macroeconomic headwinds may dampen consumer spending and demand, affecting revenue growth and operational performance.

Upbound Group Business Overview & Revenue Model

Company Description

Upbound Group (UPBD) is a leading provider of innovative technology solutions and services, primarily focused on the logistics and supply chain management sectors. The company specializes in developing software platforms that enhance operational efficiency and visibility for businesses, enabling them to optimize their supply chain processes. Through its suite of products, including cloud-based logistics management tools and analytics software, Upbound Group aims to empower organizations to make data-driven decisions and improve overall performance.

How the Company Makes Money

Upbound Group primarily generates revenue through a subscription-based model for its software platforms, allowing clients to access various features and services for a recurring fee. Additionally, the company earns income from consulting services, where it provides expertise in supply chain optimization and technology integration. Key revenue streams include licensing fees for software usage, customization services for enterprise clients, and maintenance contracts. Significant partnerships with major logistics firms and technology providers also contribute to its earnings, as these collaborations expand the reach of Upbound's offerings and enhance its market presence.

Upbound Group Financial Statement Overview

Summary

Upbound Group shows stable financial performance with moderate revenue growth and healthy gross profit margins. However, the low net profit margin and declining net income are concerns. The company has improved its debt management, but the low equity ratio poses potential risks.

Income Statement

Upbound Group shows moderate revenue growth with a TTM increase of 2.14%. Gross profit margin remains healthy at 47.91%, but net profit margin is low at 1.85%, indicating challenges in converting revenue to profit. EBIT and EBITDA margins are stable, suggesting operational efficiency. However, the declining net income over the years is a concern.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM to 0.42 from a high of 2.86, indicating better leverage management. Return on equity is strong at 12.60%, showing effective use of equity. However, the equity ratio is low, suggesting potential risks in asset financing.

Cash Flow

Free cash flow growth is positive at 5.17% in the TTM, and the free cash flow to net income ratio is strong at 1.18, indicating good cash generation relative to net income. Operating cash flow to net income ratio is lower, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.32B	3.99B	4.25B	4.58B	2.81B
Gross Profit	2.19B	2.08B	2.02B	2.08B	2.24B	1.67B
EBITDA	979.01M	339.01M	290.54M	283.05M	435.01M	294.77M
Net Income	84.48M	123.48M	-5.18M	12.36M	134.94M	208.12M
Balance Sheet
Total Assets	3.21B	2.65B	2.72B	2.76B	2.99B	1.75B
Cash, Cash Equivalents and Short-Term Investments	107.02M	60.86M	93.70M	144.14M	108.33M	159.45M
Total Debt	1.83B	1.58B	1.60B	1.67B	1.87B	475.84M
Total Liabilities	2.52B	2.02B	2.16B	2.24B	2.48B	1.16B
Stockholders Equity	687.30M	628.98M	560.37M	525.15M	513.28M	592.08M
Cash Flow
Free Cash Flow	196.91M	48.45M	146.89M	407.07M	329.85M	201.96M
Operating Cash Flow	202.04M	104.72M	200.29M	468.46M	392.30M	236.50M
Investing Cash Flow	-389.05M	-41.51M	-50.96M	-62.33M	-1.34B	-20.61M
Financing Cash Flow	208.32M	-93.52M	-202.12M	-370.71M	892.85M	-126.68M

Upbound Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UPBD, the sentiment is Negative. The current price of 18.23 is above the 20-day moving average (MA) of 17.80, below the 50-day MA of 18.81, and below the 200-day MA of 21.89, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UPBD.

Upbound Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KARO	76 Outperform	$1.45B	26.34	34.42%	2.67%	18.30%	22.19%
SEMR	73 Outperform	$1.77B	-386.32	-1.68%	―	19.87%	-136.93%
MLNK	66 Neutral	―	―	-5.41%	―	5.96%	50.29%
UPBD	65 Neutral	$1.00B	11.82	13.01%	8.80%	7.48%	2.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	57 Neutral	$942.02M	37.13	―	―	-2.13%	―
AMPL	52 Neutral	$1.53B	-14.93	-37.47%	―	12.78%	-20.47%

Upbound Group Corporate Events

Upbound Group Reports Strong Q3 2025 Financial Results

On October 30, 2025, Upbound Group, Inc. announced its financial results for the third quarter of 2025, reporting a consolidated revenue growth of 9% year-over-year, reaching $1.2 billion. Notable achievements include Acima’s continued growth with an 11% increase in GMV and a 10.4% rise in revenue, Brigit’s 40.2% revenue growth driven by subscriber and ARPU increases, and Rent-A-Center’s improved same-store sales. The company also reported strong cash flow generation and appointed new leadership, with expectations of stabilizing Rent-A-Center sales in the fourth quarter.

Upbound Group Appoints New CFO Hal Khouri

On October 30, 2025, Upbound Group, Inc. announced the appointment of Hal Khouri as Executive Vice President and Chief Financial Officer, effective November 10, 2025. Mr. Khouri, who brings over 30 years of experience in consumer-based banking and financial services, will succeed Fahmi Karam, the current CEO who has been serving as CFO since June 2025. This strategic appointment is expected to enhance Upbound’s financial operations and support its long-term growth objectives, as Mr. Khouri will oversee financial operations, capital allocation, and investor relations. His extensive background in strategic financial governance and leadership is anticipated to drive value for Upbound’s customers, merchant partners, and shareholders.