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Upbound Group, Inc.. (UPBD) Stock Fundamental Analysis & AI Rating 2026

UPBD Nasdaq Services-Equipment Rental & Leasing, NEC DE CIK: 0000933036
Recently Updated • Analysis: Apr 18, 2026 • SEC Data: 2025-12-31
📅 Next earnings: Apr 30, 2026 (in 12 days) • Pre-market ET • EPS est. $1.05 (vs $1.00 prior year) • All earnings →
SELL
72% Conf
Pending
Analysis scheduled

📊 UPBD Key Takeaways

Revenue: $4.7B
Net Margin: 1.6%
Free Cash Flow: $238.7M
Current Ratio: N/A
Debt/Equity: 0.28x
EPS: $1.25
AI Rating: SELL with 72% confidence
Upbound Group, Inc.. (UPBD) receives a SELL rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $4.7B, net profit margin of 1.6%, and return on equity (ROE) of 10.5%, Upbound Group, Inc.. demonstrates mixed fundamentals in the Industrial sector. Below is our complete UPBD stock analysis for 2026.

Is Upbound Group, Inc.. (UPBD) a Good Investment?

Claude

Despite solid 8.7% revenue growth, net income collapsed 40.7% YoY and earnings per share fell 43.4%, signaling severe margin compression or operational deterioration. With dangerously thin 1.6% net margins, weak 2.0x interest coverage, and a 47-point gap between gross (48.4%) and net margins, the company faces structural profitability challenges that outweigh the benefits of strong free cash flow generation.

Why Buy Upbound Group, Inc.. Stock? UPBD Key Strengths

Claude
  • + Strong free cash flow of $238.7M (5.1% margin) provides liquidity cushion independent of declining profits
  • + Conservative leverage with 0.28x debt-to-equity ratio and manageable $191.8M long-term debt
  • + Healthy 48.4% gross margin demonstrates underlying product-level pricing power and cost control

UPBD Stock Risks: Upbound Group, Inc.. Investment Risks

Claude
  • ! Severe net income decline of 40.7% YoY amid 8.7% revenue growth indicates margin compression or hidden operational costs not explained by revenue dynamics
  • ! Critically thin 1.6% net margin and weak 2.0x interest coverage create acute vulnerability to cost inflation, rate increases, or demand softening
  • ! Massive 47-point margin leakage between gross margin (48.4%) and net margin (1.6%) suggests operational inefficiency, high SG&A, or unsustainable interest expense burden

Key Metrics to Watch

Claude
  • * Net margin trend and operating expense breakdown - identify root cause of profit collapse
  • * Interest expense and debt service sustainability relative to operating cash flow
  • * Operating cash flow stability - validate whether $305.6M level persists or was artificially inflated by working capital changes

Upbound Group, Inc.. (UPBD) Financial Metrics & Key Ratios

Revenue
$4.7B
Net Income
$73.2M
EPS (Diluted)
$1.25
Free Cash Flow
$238.7M
Total Assets
$3.3B
Cash Position
$120.5M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

UPBD Profit Margin, ROE & Profitability Analysis

Gross Margin 48.4%
Operating Margin 4.8%
Net Margin 1.6%
ROE 10.5%
ROA 2.2%
FCF Margin 5.1%

UPBD vs Industrial Sector: How Upbound Group, Inc.. Compares

How Upbound Group, Inc.. compares to Industrial sector averages

Net Margin
UPBD 1.6%
vs
Sector Avg 10.0%
UPBD Sector
ROE
UPBD 10.5%
vs
Sector Avg 15.0%
UPBD Sector
Current Ratio
UPBD 0.0x
vs
Sector Avg 1.8x
UPBD Sector
Debt/Equity
UPBD 0.3x
vs
Sector Avg 0.7x
UPBD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Upbound Group, Inc.. Stock Overvalued? UPBD Valuation Analysis 2026

Based on fundamental analysis, Upbound Group, Inc.. has mixed fundamental signals relative to the Industrial sector in 2026.

Return on Equity
10.5%
Sector avg: 15%
Net Profit Margin
1.6%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.28x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Upbound Group, Inc.. Balance Sheet: UPBD Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.28x
Debt/Assets
78.8%
Interest Coverage
1.98x
Long-term Debt
$191.8M

UPBD Revenue & Earnings Growth: 5-Year Financial Trend

UPBD 5-year financial data: Year 2021: Revenue $4.6B, Net Income $173.5M, EPS $3.10. Year 2022: Revenue $4.6B, Net Income $208.1M, EPS $3.73. Year 2023: Revenue $4.6B, Net Income $134.9M, EPS $2.02. Year 2024: Revenue $4.3B, Net Income $12.4M, EPS $0.21. Year 2025: Revenue $4.7B, Net Income -$5.2M, EPS $-0.09.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Upbound Group, Inc..'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $-0.09 indicates the company is currently unprofitable.

UPBD Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.1%
Free cash flow / Revenue

UPBD Quarterly Earnings & Performance

Quarterly financial performance data for Upbound Group, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.1B $13.2M $0.22
Q2 2025 $1.1B $15.5M $0.26
Q1 2025 $1.1B $24.8M $0.42
Q3 2024 $979.1M $4.4M $0.08
Q2 2024 $979.2M $1.7M $0.03
Q1 2024 $1.0B $27.7M $0.50
Q3 2023 $979.1M -$4.2M $0.08
Q2 2023 $979.2M $1.7M $0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Upbound Group, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$305.6M
Cash generated from operations
Capital Expenditures
$66.9M
Investment in assets
Dividends Paid
$87.9M
Returned to shareholders

UPBD SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Upbound Group, Inc.. (CIK: 0000933036)

📋 Recent SEC Filings

Date Form Document Action
Apr 2, 2026 4 xslF345X06/wk-form4_1775162614.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775162240.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775162161.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775162070.xml View →
Apr 2, 2026 4 xslF345X06/wk-form4_1775161990.xml View →

Frequently Asked Questions about UPBD

What is the AI rating for UPBD?

Upbound Group, Inc.. (UPBD) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are UPBD's key strengths?

Claude: Strong free cash flow of $238.7M (5.1% margin) provides liquidity cushion independent of declining profits. Conservative leverage with 0.28x debt-to-equity ratio and manageable $191.8M long-term debt.

What are the risks of investing in UPBD?

Claude: Severe net income decline of 40.7% YoY amid 8.7% revenue growth indicates margin compression or hidden operational costs not explained by revenue dynamics. Critically thin 1.6% net margin and weak 2.0x interest coverage create acute vulnerability to cost inflation, rate increases, or demand softening.

What is UPBD's revenue and growth?

Upbound Group, Inc.. reported revenue of $4.7B.

Does UPBD pay dividends?

Upbound Group, Inc.. pays dividends, with $87.9M distributed to shareholders in the trailing twelve months.

Where can I find UPBD SEC filings?

Official SEC filings for Upbound Group, Inc.. (CIK: 0000933036) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is UPBD's EPS?

Upbound Group, Inc.. has a diluted EPS of $1.25.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is UPBD a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Upbound Group, Inc.. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is UPBD stock overvalued or undervalued?

Valuation metrics for UPBD: ROE of 10.5% (sector avg: 15%), net margin of 1.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

Should I buy UPBD stock in 2026?

Our dual AI analysis gives Upbound Group, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is UPBD's free cash flow?

Upbound Group, Inc..'s operating cash flow is $305.6M, with capital expenditures of $66.9M. FCF margin is 5.1%.

How does UPBD compare to other Industrial stocks?

Vs Industrial sector averages: Net margin 1.6% (avg: 10%), ROE 10.5% (avg: 15%), current ratio N/A (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI