Upbound GroupUPBD +2.35%74 Operating Margin % is 6.35% as of Mar. 2026, which is 44% above its 10-year median of 4.42. GuruFocus rates UPBD with a GF Score™ of 74/100 and a GF Value™ of $31.83 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 2,818 Software companies, Upbound Group ranks better than 53.62% on this metric.
Upbound Group (NAS:UPBD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Upbound Group Operating Margin % Related Terms
Upbound Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Upbound Group's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
UPBD vs APPS, AMPL, VIA: Operating Margin % Comparison
For the Software - Application subindustry, Upbound Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Upbound Group Operating Margin % vs Software Industry
For the Software industry and Technology sector, Upbound Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Upbound Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Upbound Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Upbound Group (UPBD) has a Operating Margin % of 6.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Upbound Group and its competitors. This is 44% above median its historical median of 4.42. According to the industry distribution chart, Upbound Group ranks #1307 out of 2818 companies in the Software industry, placing it in the top 46.4%.
Is Upbound Group's Operating Margin % too high?
Upbound Group's current Operating Margin % of 6.35% is 44% above median its 10-year median of 4.42. The Software industry median Operating Margin % is 3.87. Upbound Group's value of 6.35% is 64.3% above this industry median. Based on the distribution chart, Upbound Group ranks #1307 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Upbound Group has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Upbound Group's Operating Margin % compare to APPS and AMPL?
According to the Software industry distribution chart, Upbound Group ranks #1307 out of 2818 companies for Operating Margin %. This puts Upbound Group in the upper half of its industry. The industry median Operating Margin % is 3.87. Upbound Group's value of 6.35% is 64.3% above this benchmark. While the company's 10-year median is 4.42 vs. the industry median of 3.87, Upbound Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Upbound Group's current Operating Margin % of 6.35% is 64.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Upbound Group and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Upbound Group's current Operating Margin % is 6.35%, which is 44% above median its own 10-year median of 4.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Upbound Group stock overvalued right now?
Based on GuruFocus' analysis, Upbound Group (UPBD) is currently considered Significantly Undervalued. The stock's GF Value™ is $31.83, compared to a current price of $20.05 — trading 37% below its estimated fair value. The current Operating Margin % is 6.35%, which is 44% above median its 10-year median of 4.42 and 64.3% above the Software industry median of 3.87. Upbound Group's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Upbound Group (UPBD), the current Operating Margin % is 6.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Upbound Group (UPBD) Overvalued in 2026?
Based on GuruFocus' analysis, Upbound Group stock appears to be undervalued.
The current stock price of $20.05 is trading 37% below its estimated GF Value™ of $31.83.
GuruFocus considers Upbound Group to be Significantly Undervalued.
Key valuation signals for UPBD:
Operating Margin %: 6.35% (44% above median its 10-year median of 4.42)
GF Value™: $31.83 vs. price of $20.05 (37% below fair value)
Industry Position: 64.3% above the Software median (#1307 of 2818)
No single metric tells the full story. See the UPBD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Upbound Group Inc is an omnichannel platform company committed to elevating financial opportunity for all through inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. It has four operating segments; The Rent-A-Center Business segment operates lease-to-own stores, the Acima segment offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer, and also offers the lease-to-own transaction through virtual offering solutions, Mexico segment offers lease-to-own stores in Mexico. The The Brigit segment offers various financial health products and tools to help users improve their financial health. The company derives a majority of its revenue from the Acima segment.
74GF Score
Get the complete analysis for UPBD
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
UPBD has been successfully added to your 
