Upbound Group (UPBD) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 7.04%
• Average Volume (3M): 704.59K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.28
• Revenue Growth: 7.49%
• EPS Growth: 84.67%
• Country: US
• Employees: 11,970
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 1.12
• Shares Outstanding: 57,895,610
• 10 Day Avg. Volume: 1,064,660
• 30 Day Avg. Volume: 704,588
• 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: 2.58
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $32.33
• Price Target Upside: 47.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $23.00 ▲(5.07% Upside)

Upbound Group's strong financial performance and attractive valuation are key strengths, supported by robust earnings call results and positive corporate events. However, technical indicators suggest bearish momentum, which weighs on the overall score. Continued monitoring of market trends and macroeconomic factors is recommended.

Positive Factors

Earnings Performance

UPBD reported earnings per share above both the analyst's estimate and the consensus.

Revenue and Market Position

Acima continues to see strong momentum into the second half of the year.

Sales and Revenue

Upbound is seeing same-store sales inflecting in 3Q25 and into 4Q25.

Negative Factors

Guidance and Market Reaction

The lack of a guidance raise for the full year contributed to the stock's downward reaction post-earnings.

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.

Profit Margins

Higher cost of revenue, especially in rentals and fees, resulted in a lower gross margin for rentals and fees.

Upbound Group Business Overview & Revenue Model

Company Description

Upbound Group, Inc., an omni-channel platform company, leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. The company operates in four segments: Rent-A-Center Business, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It offers furniture comprising mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories. The company also provides merchandise on an installment sales basis; and the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks located within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; lease-to-own and franchised lease-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names; and company-owned stores and e-commerce platform through rentacenter.com. The company was formerly known as Rent-A-Center, Inc. and changed its name to Upbound Group, Inc. in February 2023. Upbound Group, Inc. was founded in 1960 and is headquartered in Plano, Texas.

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	4.48B	4.32B	3.99B	4.25B	4.58B	2.81B
Gross Profit	2.14B	2.08B	1.28B	2.08B	2.24B	1.67B
EBITDA	646.28M	339.01M	290.54M	283.05M	435.01M	294.77M
Net Income	102.12M	123.48M	-5.18M	12.36M	134.94M	208.12M
Balance Sheet
Total Assets	3.10B	2.65B	2.72B	2.76B	2.99B	1.75B
Cash, Cash Equivalents and Short-Term Investments	106.84M	60.86M	93.70M	144.14M	108.33M	159.45M
Total Debt	1.85B	1.58B	1.60B	305.56M	296.54M	285.35M
Total Liabilities	2.41B	2.02B	2.16B	2.24B	2.48B	1.16B
Stockholders Equity	685.55M	628.98M	560.37M	525.15M	513.28M	592.08M
Cash Flow
Free Cash Flow	197.66M	48.45M	146.89M	407.07M	329.85M	201.96M
Operating Cash Flow	182.00M	104.72M	200.29M	468.46M	392.30M	236.50M
Investing Cash Flow	-300.84M	-41.51M	-50.96M	-62.33M	-1.34B	-20.61M
Financing Cash Flow	145.00M	-93.52M	-202.12M	-370.71M	892.85M	-126.68M

Upbound Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.89
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 21.89 is below the 20-day moving average (MA) of 23.87, below the 50-day MA of 24.46, and below the 200-day MA of 26.12, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 38.08 is Neutral, neither overbought nor oversold. The STOCH value of 34.24 is Neutral, 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	77 Outperform	$1.42B	26.92	29.66%	2.33%	14.21%	23.74%
UPBD	73 Outperform	$1.25B	12.01	15.93%	7.04%	7.49%	84.67%
Sector *	69 Neutral	¥233.77B	14.28	7.64%	2.58%	9.19%	5.32%
PRCH	68 Neutral	$1.36B	34.57	75.95%	―	-7.41%	―
MLNK	65 Neutral	$1.26B	―	-6.49%	―	5.15%	28.27%
AMPL	60 Neutral	$1.60B	―	-33.99%	―	8.56%	-4.21%
SEMR	56 Neutral	$1.08B	182.58	-0.50%	―	22.16%	-107.92%

Upbound Group Corporate Events

Upbound Group Reports Q2 2025 Financial Results

On July 31, 2025, Upbound Group, Inc. announced its financial results for the second quarter ending June 30, 2025, reporting total revenue of $1,158 million. The company achieved a GAAP diluted EPS of $0.26 and a non-GAAP diluted EPS of $1.12. The results reflect the company’s focus on addressing the needs of underserved consumers through its diverse brand portfolio. The announcement highlights Upbound’s strategic positioning in the financial solutions industry and its ongoing commitment to growth and operational efficiency.

The most recent analyst rating on (UPBD) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Upbound Group stock, see the UPBD Stock Forecast page.

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.