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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1314
Positioning
Market Dominance
Services
Business Services
$1.3B
Mitchell E. Fadel
Rent-A-Center, Inc. leases household durable goods to customers on a lease-to-own basis. As of December 31, 2021, the company owned and operated approximately 1,846 stores in the United States and Puerto Rico, including 45 retail installment sales stores; 35 Acima staffed locations in North Carolina; and 123 stores in Mexico.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = UPBD ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$UPBD UPBOUND GROUP, INC. | 55 | 58 | 65 | 53 | 15.6x | 5.3x | 12.3% | 2.6% | 48.1% | 5.2% | 1.9% | 8.2% | 6.8% | 367.0x | $1.3B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
UPBOUND GROUP, INC. (UPBD) receives a "Hold" rating with a composite score of 54.7/100. It ranks #1314 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for UPBD.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 58 | 72 | -14DRAG |
| MOMENTUM | 53 | 54 | -1NEUTRAL |
| VALUATION | 65 | 73 | -8DRAG |
| INVESTMENT | 27 | 21 | +6ALPHA |
| STABILITY | 57 | 62 | -5NEUTRAL |
| SHORT INT | 35 | 24 | +11ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 2.7% vs WACC 5.2% (spread -2.6%)
GM 48% vs sector 65%, OM 5% vs sector 5%
Capital turnover 0.81x
Rev growth 8%, 10yr history
Interest coverage 1.8x, Net debt/EBITDA 27.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate UPBOUND GROUP, INC. (UPBD) as a Hold with a composite score of 54.7/100 at a current price of $21.72. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
UPBOUND GROUP, INC. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 54.7/100 places it at rank #1314 in our full universe.
No Moat
High
Poor
Undervalued
Gross margins of 48% signal strong pricing power.
Value factor score of 65 suggests attractive pricing.
Stable competitive position in a defensive sector.
Leverage of 367% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
UPBOUND GROUP, INC. represents a hold based on multi-factor quantitative performance.
Our model assigns UPBOUND GROUP, INC. a Hold rating, with a composite score of 54.7/100 and 3 out of 5 stars. Ranked #1314 of 7,333 stocks, UPBD presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 58/100, UPBD shows adequate but unremarkable business quality. The company reports a return on equity of 12.3% (sector avg: 5.7%), gross margins of 48.1% (sector avg: 64.6%), net margins of 1.9% (sector avg: 2.8%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
UPBD's value score of 65/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 15.64x, an EV/EBITDA of 5.30x, a P/B ratio of 1.92x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
UPBOUND GROUP, INC.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 8.2% vs. a sector average of 8.6% and a return on assets of 2.6% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
UPBD demonstrates moderate momentum with a score of 53/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 8.2% year-over-year, while a beta of 1.25 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 57/100, UPBD exhibits average financial resilience. Key stability metrics include a beta of 1.25 and a debt-to-equity ratio of 367.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
UPBOUND GROUP, INC.'s short interest score of 35/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.25), elevated leverage (D/E: 367.00x), small-cap liquidity risk. At $1.3B (small-cap), UPBD carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
UPBOUND GROUP, INC. offers an attractive dividend yield of 6.8%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
UPBOUND GROUP, INC. is a small-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #1314 of 7,333 overall (82nd percentile). Key comparisons include ROE of 12.3% exceeding the 5.7% sector median and operating margins of 5.2% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While UPBD currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Investment (27) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 55% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 114% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 26% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081

Upbound Group (formerly Rent-A-Center) offers an 8.2% dividend yield with a forward P/E ratio below 4, supported by strategic acquisitions of Acima and Brigit. Despite a 35% decline over the past year, the company's revenue growth, strong profitability, and dividend increases position it as a potential turnaround opportunity in 2026, though economic sensitivity and high debt remain risks.

Upbound's (UPBD) Q1 results demonstrate resilience and optimism despite market challenges.
Operator: Good day, and thank you for standing by. Welcome to the Upbound Group, Inc. Fourth Quarter 2025 Earnings Conference Call. At this time, participants are in a listen-only mode.
Upbound Group Inc (UPBD) reports record revenue growth and strategic expansion, despite facing margin pressures and elevated loss rates in key segments.
Upbound Group (UPBD) narrowly beat Q4 2025 earnings and revenue estimates, but shares fell as its 2026 outlook aligned with, rather than exceeded, analyst expectations.