Upbound: Decision Engine Equipped With Large Data Sets Implies Undervaluation

Summary

• Upbound Group, Inc. appears undervalued due to its expanding retail network, proprietary automated decision engine, and significant market opportunity among U.S. consumers lacking traditional credit access.
• The company's flexible lease-purchase agreements, better-than-expected EPS, and revenue growth, along with a low forward earnings multiple, indicate strong future FCF growth potential.
• Key business drivers include increased retail partner locations, robust automated customer selection processes, rising e-commerce revenue, and effective marketing strategies.
• Despite risks related to data acquisition, regulatory changes, and competition, a conservative DCF model suggests a fair valuation close to $95 per share.

We Are

Upbound Group, Inc. (NASDAQ:UPBD) recently noted that an expansion of its retail network and the company's proprietary automated decision engine serve as ideal business drivers. In my view, successful acquisition of data from third-parties to assess potential lease

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UPBD either through stock ownership, options, or other derivatives. 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.