Upbound Group: Cheap For A Reason

AMO Research396 FollowersFollow5ShareSavePlay(12min)CommentsSummaryUpbound Group receives a Hold rating due to credit stress in Acima, high leverage, and mixed segment performance.Acima's growth is offset by rising lease charge-offs and tighter underwriting, likely slowing future GMV growth and pressuring valuation multiples.Rent-A-Center's sales decline is moderating, but store closures and flat outlook signal continued operational headwinds despite resilient EBITDA margins.UPBD's low P/E is justified by elevated debt (2.9x net leverage) and execution risks; the omnichannel strategy offers resilience, but clarity is needed before upgrading. J. Michael Jones/iStock Editorial via Getty Images Upbound Group, Inc. (UPBD) is evolving in a complicated landscape for this end of the year. I will give a hold rating to the company, challenged by a divergence between its retail andThis article was written byAMO Research396 FollowersFollowI am a dynamic finance professional with a Master’s in Banking & Finance from Université Paris 1 Panthéon-Sorbonne. My investing background mix corporate finance, M&A, and investment analysis, with a focus on real estate, renewable energy, and equity markets. I specialize in financial modelling, valuation, and qualitative analysis, demonstrated with hands-on roles in private equity, asset management and Real Estate.

On Seeking Alpha, I aim to write about companies I find interesting sharing my insights and analysis with a global audience, and to debate my ideas in a will of continuous improvement. Motivated by empowering informed decisions, I’m excited to connect with readers and grow as a thought leader in finance.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.