AI Spotlight on UPBD
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.
Market Data
Last Price | 29.34 |
Change Percentage | -1.87% |
Open | 29.81 |
Previous Close | 29.9 |
Market Cap ( Millions) | 1605 |
Volume | 404020 |
Year High | 38.72 |
Year Low | 26.5 |
M A 50 | 31.29 |
M A 200 | 31.44 |
Financial Ratios
FCF Yield | 5.33% |
Dividend Yield | 5.11% |
ROE | 13.85% |
Debt / Equity | 247.29% |
Net Debt / EBIDTA | 362.14% |
Price To Book | 2.62 |
Price Earnings Ratio | 19.74 |
Price To FCF | 18.75 |
Price To sales | 0.38 |
EV / EBITDA | 7.69 |
News
- Dec -12 - Upbound Group Enters Definitive Agreement to Acquire Brigit, a Leading Financial Health Technology Firm, for up to $460 Million
- Nov -21 - Upbound Group, Inc. Collaborates with Google Cloud to Transform Customer Experience with a Comprehensive AI Roadmap
- Nov -08 - Upbound: Proven Business Model, FCF, Divestiture, And Significantly Undervalued
- Nov -01 - UPBD Beats Earnings & Revenue Estimates in Q3, Raises 2024 Guidance
- Oct -31 - Upbound Group (UPBD) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
- Oct -31 - Upbound Group (UPBD) Tops Q3 Earnings and Revenue Estimates
- Oct -24 - Upbound Group (UPBD) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
- Sep -28 - Upbound: Decision Engine Equipped With Large Data Sets Implies Undervaluation
- Sep -25 - Upbound Group: Valuation Is Too Low Despite Its Risks
- Sep -19 - 5 Stocks With High ROE to Buy as Markets Skid Off the Peak
- Sep -04 - 5 High ROE Stocks to Buy as Market Dips on Soft Manufacturing Data
- Aug -16 - Buy 5 High ROE Stocks as Low Inflation Data Steadies Market
- Aug -08 - How Much Upside is Left in Upbound Group (UPBD)? Wall Street Analysts Think 27.34%
- Aug -06 - All You Need to Know About Upbound Group (UPBD) Rating Upgrade to Buy
- Aug -06 - Upbound Group (UPBD) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now
- Aug -02 - Upbound (UPBD) Q2 Earnings Beat Estimates, Revenues Increase Y/Y
- Aug -01 - Upbound Group, Inc. (UPBD) Q2 2024 Earnings Call Transcript
- Aug -01 - Upbound Group (UPBD) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
- Aug -01 - Upbound Group (UPBD) Q2 Earnings and Revenues Beat Estimates
- Jul -25 - Upbound Group (UPBD) Expected to Beat Earnings Estimates: Should You Buy?
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Acima
Expected Growth : 2.5 %
What the company do ?
Acima, from Upbound Group, Inc., is a lease-to-own solution for retailers, allowing customers to acquire goods without credit checks or upfront payments.
Why we expect these perspectives ?
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.
Segment nΒ°2 -> Rent-A-Center
Expected Growth : 2.8 %
What the company do ?
Rent-A-Center is a leading provider of furniture, electronics, and appliances for rent, offering flexible payment options and affordable prices to customers.
Why we expect these perspectives ?
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.
Segment nΒ°3 -> Franchising
Expected Growth : 2.2 %
What the company do ?
Franchising from Upbound Group, Inc. allows entrepreneurs to own and operate a business using the company's brand, products, and business model, with ongoing support and guidance.
Why we expect these perspectives ?
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.
Segment nΒ°4 -> Mexico
Expected Growth : 3.5 %
What the company do ?
Mexico from Upbound Group, Inc. refers to a data segment providing insights into Mexico's market trends, consumer behavior, and business opportunities.
Why we expect these perspectives ?
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.
Upbound Group, Inc. Products
Product Range | What is it ? |
---|---|
Rook | Rook is an open-source storage orchestrator for Kubernetes, providing a cloud-native storage experience. |
Crossplane | Crossplane is an open-source control plane for multicloud and edge environments, providing a unified API for infrastructure and services. |
Upbound Cloud | Upbound Cloud is a managed platform for Kubernetes and cloud-native applications, providing a simplified and secure way to deploy and manage workloads. |
Upbound Group, Inc.'s Porter Forces
Threat Of Substitutes
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.
Bargaining Power Of Customers
The bargaining power of customers is high, as they have many options available in the market and can easily switch to competitors.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low, as Upbound Group, Inc. is a large company and has many suppliers to choose from.
Threat Of New Entrants
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.
Intensity Of Rivalry
The intensity of rivalry is high, as there are many competitors in the market and they are all competing for market share.
Capital Structure
Value | |
---|---|
Debt Weight | 71.62% |
Debt Cost | 3.95% |
Equity Weight | 28.38% |
Equity Cost | 13.88% |
WACC | 6.77% |
Leverage | 252.32% |
Upbound Group, Inc. : Quality Control
Upbound Group, Inc. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
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