Upbound Group (UPBD) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 7.28%
• Average Volume (3M): 777.20K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.33
• Revenue Growth: 7.49%
• EPS Growth: 84.67%
• Country: US
• Employees: 11,970
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.12
• Shares Outstanding: 57,895,610
• 10 Day Avg. Volume: 740,355
• 30 Day Avg. Volume: 777,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $35.00
• Price Target Upside: 63.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $28.00 ▲(30.72% Upside)

Upbound Group's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust earnings call results, particularly in the Acima and Brigit segments, further bolster its outlook. However, technical indicators suggest potential short-term weakness, and challenges in the Rent-A-Center segment pose risks.

Positive Factors

Segment Growth

Consistent growth in the Acima segment highlights Upbound's ability to expand its market presence and leverage operational efficiencies, supporting long-term revenue growth.

Cash Flow Generation

Significant improvement in free cash flow indicates strong cash generation capabilities, enhancing financial flexibility and supporting future investments.

Subscriber Growth

Robust subscriber growth in the Brigit segment underscores Upbound's successful customer acquisition strategies and potential for sustained revenue expansion.

Negative Factors

Legal and Regulatory Challenges

Significant legal and regulatory accruals could impact financial stability and increase operational risks, potentially diverting resources from growth initiatives.

Decline in Rent-A-Center Segment

The decline in the Rent-A-Center segment indicates challenges in maintaining market share and profitability, which could affect overall company performance.

High Lease Charge-Off Rate

An increasing lease charge-off rate suggests rising credit risk, potentially impacting the segment's profitability and cash flow generation.

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 generates revenue through multiple streams, primarily from the sale of software licenses, subscription-based services, and consulting fees. The company charges clients for its cloud management platforms on a subscription basis, providing ongoing updates and support, which ensures a steady income flow. Additionally, consulting services are billed on a project basis or retainer agreements, further diversifying its revenue sources. Key partnerships with major cloud providers and technology firms also play a crucial role in its business model, as they enable Upbound Group to offer integrated solutions that attract more clients and enhance service offerings, ultimately driving profitability.

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: 21.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 21.42 is below the 20-day moving average (MA) of 23.27, below the 50-day MA of 23.71, and below the 200-day MA of 24.30, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, 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	82 Outperform	$1.62B	30.67	29.66%	2.22%	14.21%	23.74%
UPBD	76 Outperform	$1.21B	11.68	15.93%	7.28%	7.49%	84.67%
MLNK	63 Neutral	$1.48B	―	-5.41%	―	5.96%	50.29%
PRCH	62 Neutral	$1.57B	33.36	75.95%	―	-7.41%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEMR	60 Neutral	$1.06B	182.58	-0.50%	―	22.16%	-107.92%
AMPL	60 Neutral	$1.32B	―	-33.99%	―	9.93%	-11.15%

Upbound Group Corporate Events

Upbound Group Amends Loan Agreement, Secures $77M

On August 19, 2025, Upbound Group, Inc. and its subsidiaries amended their Term Loan Credit Agreement, extending the loan maturity date to August 19, 2032, and securing $77 million in additional commitments, bringing total borrowings to $875 million. The company plans to use these funds for fees, expenses related to the amendment, working capital, and general corporate purposes, potentially including repayment of part of its revolving credit facility.

The most recent analyst rating on (UPBD) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Upbound Group stock, see the UPBD Stock Forecast page.