Upbound Group, Inc. (UPBD) stock analysis

P/E below its 5-year median

Upbound's P/E of 13.3 is below its own 5-year median of 16.1.

P/E below the industry

Upbound's P/E of 13.3 is below the Miscellaneous Equipment Rental and Leasing median of 19.8.

EV/EBITDA below its 5-year median

Upbound's EV/EBITDA of 5.2 is below its 5-year median of 5.5.

P/B below the industry

Upbound's price-to-book of 1.96 is below the Miscellaneous Equipment Rental and Leasing median of 2.93.

Trading below fair value

The share price of $25.27 is below our fair value estimate of $33.11.

Margin of safety over 20%

The price is 23.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 81.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 31.8% over the last twelve months, against a 5-year average of -18.8% a year.

Growing slower than the industry

Revenue grew 3.2% over the last twelve months; the Miscellaneous Equipment Rental and Leasing median is 9.4%.

Guidance lowered

Upbound lowered its Full-year consolidated revenue outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 49.7% over the last twelve months, against 47.9% a year earlier.

Return on equity under 15%

Return on equity was 15.5% over the last twelve months and averaged 11.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 30.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Upbound's return on equity of 15.5% is above the Miscellaneous Equipment Rental and Leasing median of 12.9%.

Earnings shrank over 5 years

Net income shrank 18.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 2.4% over the last twelve months, against a 5-year average of 1.5%.

Net margin below the industry

Upbound's net margin of 2.4% is below the Miscellaneous Equipment Rental and Leasing median of 5.4%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 2.5 times; we look for at least 5.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.69; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Upbound paid dividends worth 6.2% of the share price over the last twelve months.

Yield above Treasuries

The 6.2% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Upbound yields 6.2%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 82.3% of net income.

Covered by free cash flow

Dividends take 21.1% of free cash flow.