Upbound Group, Inc.

Valuation Analysis

About the Company

Upbound Group, Inc., a technology and data-driven company, provides financial solutions in the United States, Puerto Rico, and Mexico. It operates through four segments: Acima, Rent-A-Center, Brigit, and Mexico. The company also provides furniture, including mattresses, tires, consumer electronics, appliances, tools, handbags, computers, and accessories. In addition, it offers merchandise on an installment sales basis; and the lease-to-own transaction to consumers who do not qualify for traditional financing, the lease-to-own transaction through staffed or unstaffed kiosks located in third-party retailer's locations, and other virtual options. Further, the company provides various financial health products and tools through mobile and web applications. It operates retail installment sales

Upbound Group, Inc. Stock at a Glance

Upbound Group, Inc. (UPBD) is currently trading at $18.94 with a market capitalization of $1.1B. The trailing P/E ratio stands at 13.15x, with a forward P/E of 3.98x. The 52-week range spans from $15.82 to $28.03; the current price is 32.4% below the yearly high. Year-over-year revenue growth stands at +3.7%. The net profit margin stands at 1.78%.

💰 Dividend

Upbound Group, Inc. pays an annual dividend of $1.56 per share, representing a yield of 8.24%. The payout ratio stands at 108.33%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

7 analysts rate Upbound Group, Inc. (UPBD) on consensus: Strong Buy. The average price target is $28.50, implying +50.48% from the current price. Analyst price targets range from $20.00 to $41.00.

Upbound Group, Inc.: The Investment Case in Detail

Upbound Group, Inc. (UPBD) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 45.2% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Wall Street consensus sits at Strong Buy with an average price target implying roughly 50.48% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 3.7%, which is below nominal GDP — the business is no longer outgrowing the broader economy. With a net margin of just 1.78%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 241.44% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

The PEG ratio at 1.39 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 5.45x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 3.98x is meaningfully below the trailing 13.15x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 50.48% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to above-average price swings, elevated short interest (12.48%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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