(UPBD) Upbound - Ratings and Ratios

Upbound Group Inc. (NASDAQ:UPBD) operates as a lease-to-own provider of household durable goods, serving customers in the United States, Puerto Rico, and Mexico. The company manages its operations through four distinct segments: Rent-A-Center, Acima, Mexico, and Franchising. Its portfolio of brands, including Rent-A-Center and Acima, caters to consumer transactions across both physical and virtual channels, offering a diverse range of products such as furniture, mattresses, consumer electronics, appliances, tools, and accessories. The company provides lease-to-own options for consumers who may not qualify for traditional financing, leveraging staffed and unstaffed kiosks in third-party retail locations, as well as online platforms. Upbound Group operates retail stores under the Get It Now and Home Choice brands, franchised lease-to-own stores under the Rent-A-Center, ColorTyme, and RimTyme names, and maintains a direct e-commerce presence through rentacenter.com. Formerly known as Rent-A-Center, Inc., the company rebranded as Upbound Group Inc. in February 2023. Headquartered in Plano, Texas, Upbound Group was founded in 1960 and has established a significant presence in the lease-to-own market.

The companys strategic focus includes expanding its digital footprint, enhancing the customer experience, and diversifying its product offerings to meet evolving consumer demands. Through its multi-channel approach, Upbound Group aims to provide flexible financing solutions to credit-challenged consumers, bridging the gap between traditional retail and financial services. Its e-commerce platform integrates seamlessly with its physical store locations, allowing customers to shop online and pick up in-store or have items delivered. This omnichannel strategy underscores the companys commitment to convenience and accessibility in the lease-to-own sector.

Upbound Group Inc. is poised for near-term volatility based on its technical and fundamental indicators. The stocks price of $24.16 is trading below its SMA 50 ($23.20) and SMA 200 ($28.51), suggesting bearish momentum, though it remains above the SMA 20 ($21.15), indicating potential near-term support. The ATR of 1.21 signals moderate volatility. Fundamentally, the companys low P/S ratio of 0.28 and high RoE of 19.63 highlight its profitability and undervaluation potential. The forward P/E of 6.95 suggests expectations for future earnings growth.