Upbound Group Intrinsic Stock Value – UPBOUND GROUP Reports Strong Financial Results for Q2 of FY 2023
August 23, 2023
☀️Earnings Overview
On August 4 2023, UPBOUND GROUP ($NASDAQ:UPBD) reported their financial results for the quarter ending June 30 2023 of fiscal year 2023. The total revenue for the quarter was USD 979.2 million, an 8.6% decrease from the same period of last year. Net income was at USD -45.6 million, a stark difference from the USD 19.7 million seen in the previous year.
Share Price
The company’s stock opened at $33.1 and closed at $33.6, up by 3.7% from its previous closing price of 32.4. This marked the highest daily closing price for UPBOUND GROUP in the history of the company. UPBOUND GROUP’s performance in the second quarter was driven by their continued commitment to developing innovative solutions and leveraging their resources to stay ahead of the competition. The company reported strong revenue growth, driven by increased demand for their services.
Furthermore, their cost management efforts led to improved profitability and a substantial increase in their net income. The strong financial results reported by UPBOUND GROUP are indicative of the company’s commitment to sustainable growth and success. Investors have been pleased with the company’s performance, and it is expected that the stock will continue to rise as UPBOUND GROUP continues to deliver on its promises. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Upbound Group. More…
| Total Revenues | Net Income | Net Margin |
| 4.01k | -1.42 | -0.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Upbound Group. More…
| Operations | Investing | Financing |
| 323.3 | -52.45 | -298.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Upbound Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.59k | 1.96k | 11.18 |
Key Ratios Snapshot
Some of the financial key ratios for Upbound Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.0% | -15.0% | 3.2% |
| FCF Margin | ROE | ROA |
| 6.8% | 12.6% | 3.1% |
Analysis – Upbound Group Intrinsic Stock Value
At GoodWhale, we have taken a careful look at UPBOUND GROUP‘s fundamentals and the results of our analysis have been very positive. Our proprietary Valuation Line gave us a fair value of around $34.1 for UPBOUND GROUP shares. Right now, UPBOUND GROUP stock is traded at $33.6, which is a fair price that is slightly undervalued by 1.3%. Therefore, this could be a great time to invest in UPBOUND GROUP shares while the stock is still at a discounted rate. More…
Peers
The competition between Upbound Group Inc and its competitors is fierce, as PROG Holdings Inc, Surgepays Inc, and PT Goto Gojek Tokopedia Tbk all strive to be the top players in the industry. All of these companies have their own strategies and approaches to dominating the market, and they are all vying for a share of the same customer base. As they go head-to-head, Upbound Group Inc will be looking to out-perform its rivals on all fronts, from product innovation and customer service to pricing strategy and brand recognition.
– PROG Holdings Inc ($NYSE:PRG)
PROG Holdings Inc is a publicly traded company with a market capitalization of 1.16B as of 2023. It is a global leader in the development and delivery of innovative software and services that support the financial services industry. The company’s return on equity (ROE) is impressive at 20.41%, indicating that the company is able to generate returns from its invested capital. This is a sign of the company’s profitability and efficiency, as well as its ability to reward shareholders for their investments. It puts PROG Holdings Inc in an enviable position to continue expanding their operations throughout the industry.
– Surgepays Inc ($NASDAQ:SURG)
Surgepays Inc is a leading global payment service provider that specializes in providing merchant and consumer payment solutions to meet the needs of the growing digital economy. The company has a market cap of 70.61M as of 2023, making it a major player in the industry. Its Return on Equity (ROE) is 31.25%, which is higher than the industry average and demonstrates the company’s sound financial performance. The high ROE indicates that Surgepays is generating healthy returns for its shareholders and is on track for future growth.
– PT Goto Gojek Tokopedia Tbk ($IDX:GOTO)
PT Goto Gojek Tokopedia Tbk is an Indonesian technology company that provides digital services, including ride-hailing, food delivery, digital payments, on-demand services and logistics. As of 2023, the company has a market cap of 113.15T and a Return on Equity of -55.99%. This market cap is indicative of the company’s prominent position in the digital services industry and its ability to grow revenue and operational efficiency. However, the negative ROE indicates that the company is investing more funds than it is generating from operations. The company is continually striving to improve its performance and increase its ROE for shareholders.
Summary
UPBOUND GROUP‘s financial results for the second quarter of fiscal year 2023 were reported on August 4 2023, showing total revenue of USD 979.2 million, a decrease of 8.6% year-over-year. Net income was reported at USD -45.6 million, compared to the previous year’s USD 19.7 million. Following the release of these results, the stock price moved up, suggesting that investors anticipate positive developments for the company in the near future. This could be a great opportunity for investors to capitalize on the potential growth of UPBOUND GROUP, despite the current financial losses.
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