GICS Sector : Technology
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.
Publication Date: Mar -09
Acima, one of the company's key segments, focused on driving repeat business and leveraging digital advancements to grow merchant relationships. The team successfully delivered on these priorities, resulting in revenue growth and adjusted EBITDA growing in low double digits. Acima's direct-to-consumer marketplace experienced substantial growth, with GMV growing over 100% year over year. Rent-A-Center concentrated on digital evolution and disciplined underwriting, making significant progress in strengthening its customer experience. Bridget, a subscription-based financial health technology company, achieved remarkable growth, with a 41.5% increase in revenue and a 30% increase in paid subscribers.
The company's financial results exceeded expectations, with revenue growing 8.7% to approximately $4.7 billion. The actual EPS was $1.01, beating estimates of $0.97. Analysts estimate next year's revenue growth at 6.5%. The company's valuation metrics indicate a reasonable price, with a P/E Ratio of 15.23, P/B Ratio of 1.6, and EV/EBITDA of 2.86. The dividend yield is around 7.93%, making it an attractive option for income investors.
Looking ahead to 2026, the company expects continued growth and opportunity at Acima, with a revenue range of $4.7 billion to $4.95 billion, and adjusted EBITDA range of $500 million to $535 million. The company also expects to increase free cash flow to approximately $200 million in 2026. Management is confident in its ability to manage losses and generate returns, with a focus on executing its business plan and creating value for shareholders.
The company's strong financial performance and guidance indicate a positive outlook for 2026. With a solid foundation in place, Upbound Group is well-positioned to continue its growth trajectory and deliver value to shareholders. As the company navigates the competitive landscape, its focus on digital evolution, disciplined underwriting, and customer experience will be crucial in driving future success.
Upbound Group Deserves An Upbound Share Price
Mar -18
Unexpected Stock Picks and Looking to the Future
Mar -02
Upbound Stock Gains 6% After Reporting Q4 Earnings & Revenue Beat
Feb -20
FPA Queens Road Small Cap Value Fund Q4 2025 Performance Review
Feb -20
Upbound Group (NASDAQ:UPBD) Shares Up 9.6% After Strong Earnings
Feb -20
Upbound Group, Inc. (UPBD) Q4 2025 Earnings Call Transcript
Feb -19
Upbound Group (UPBD) Surpasses Q4 Earnings and Revenue Estimates
Feb -19
Upbound Group, Inc. Reports Fourth Quarter and Full Year 2025 Results
Feb -19
Acima's 2.5% growth is driven by increasing demand for point-of-sale financing solutions, expansion into new retail partnerships, and strategic investments in digital capabilities. Additionally, the rise of omnichannel shopping and growing consumer preference for flexible payment options contribute to the segment's growth.
Rent-A-Center's 2.8% growth is driven by increasing demand for affordable furniture and appliances, expansion into new markets, and strategic partnerships. The company's flexible rental options and omnichannel approach also contribute to its growth, as well as its focus on improving customer experience and loyalty.
Upbound Group, Inc.'s franchising growth of 2.2% is driven by increasing demand for proven business models, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, operational efficiency, and strong brand recognition contribute to its growth momentum.
Mexico's 3.5% growth is driven by a combination of factors, including a growing middle class, increasing foreign investment, and a competitive manufacturing sector. Additionally, the country's proximity to the US and its participation in the USMCA trade agreement have boosted exports, while a stable macroeconomic environment and investments in infrastructure have supported domestic consumption.
Rook is an open-source storage orchestrator for Kubernetes, providing a cloud-native storage experience.
Crossplane is an open-source control plane for multicloud and edge environments, providing a unified API for infrastructure and services.
Upbound Cloud is a managed platform for Kubernetes and cloud-native applications, providing a simplified and secure way to deploy and manage workloads.
The threat of substitutes for Upbound Group, Inc. is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.
The bargaining power of customers is high, as they have many options available in the market and can easily switch to competitors.
The bargaining power of suppliers is low, as Upbound Group, Inc. is a large company and has many suppliers to choose from.
The threat of new entrants is moderate, as there are some barriers to entry in the market, but it is still possible for new companies to enter.
The intensity of rivalry is high, as there are many competitors in the market and they are all competing for market share.
| Value | |
|---|---|
| Debt Weight | 71.62% |
| Debt Cost | 3.95% |
| Equity Weight | 28.38% |
| Equity Cost | 13.88% |
| WACC | 6.77% |
| Leverage | 252.32% |
Value: 3.2
Growth: 9.8
Quality: 7.9
Yield: 5.0
Momentum: 9.0
Volatility: 4.3
1-Year Total Return ->
Value: 10.0
Growth: 6.7
Quality: 6.1
Yield: 6.0
Momentum: 1.5
Volatility: 5.3
1-Year Total Return ->
Value: 8.8
Growth: 3.9
Quality: 6.4
Yield: 10.0
Momentum: 1.0
Volatility: 4.3
1-Year Total Return ->
Value: 2.6
Growth: 3.0
Quality: 5.7
Yield: 4.0
Momentum: 6.0
Volatility: 2.7
1-Year Total Return ->
Value: 4.6
Growth: 5.2
Quality: 2.8
Yield: 5.0
Momentum: 6.0
Volatility: 0.0
1-Year Total Return ->
Value: 4.6
Growth: 4.7
Quality: 8.0
Yield: 0.0
Momentum: 2.0
Volatility: 4.0
1-Year Total Return ->