Under Armour Inc Class C UA

Morningstar Rating
$5.12 +0.02 (0.39%)
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Company Report

Under Armour’s Comeback Depends on Return to Performance Sports Roots

We view Under Armour as lacking a moat, given its failure to build a competitive advantage over other athletic apparel firms. Between 2008 and 2016, the company’s North American sales increased to $4 billion from $700 million, and it passed Adidas as the region’s second-largest athletic apparel brand after Nike. However, Under Armour’s sales in the region have barely grown over the past decade owing to challenges from established competitors and new entrants. CEO Kevin Plank has been focused on developing technical products for athletes (primarily aged 16-24) to improve results, but tangible signs of progress have been elusive.

Price vs Fair Value

UA is trading at a LOCK|w$Lm%F% premium.
Price
$5.12
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

CEO Kevin Plank is taking Under Armour back to its roots by focusing on core men’s performance apparel, the North America sportswear market, faster product development, and less discounting.

Bears

Under Armour has gone through years of restructuring and strategic plans but continues to struggle with inconsistent sales growth and profitability.

News

Articles & Videos

Trading Information

Previous Close Price
$5.10
Day Range
$5.045.14
52-Week Range
$3.957.91
Bid/Ask
$5.10 / $5.12
Shares Outstanding
429.55M
Market Cap
$2.20B
Volume/Avg
2M / 3M

Key Statistics

Price/Earnings (Normalized)
33.28
Price/Sales
0.44
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
Total Yield
1.12%

Company Profile

Under Armour develops, markets, and distributes athletic apparel, footwear, and accessories in North America, Asia-Pacific, Europe, and Latin America. Consumers of its performance-based clothing and shoes include professional and amateur athletes, sponsored college and professional teams, and people with active lifestyles. The company sells merchandise through wholesale partners, company-owned digital channels, and approximately 440 company-owned outlet and full-price stores. The Baltimore-based firm was founded in 1996 and is led by controlling shareholder Kevin Plank.
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Stock Style Box
Small Core
Total Number of Employees
14,100

Competitors

Valuation

Metric
UA
PUM
ADDYY
Price/Earnings (Normalized)
33.2824.4617.52
Price/Book Value
1.541.954.46
Price/Sales
0.440.521.01
Price/Cash Flow
86.439.33
Price/Earnings
UA
PUM
ADDYY

Financial Strength

Metric
UA
PUM
ADDYY
Quick Ratio
0.800.480.60
Current Ratio
1.811.261.39
Interest Coverage
−3.51−8.226.96
Quick Ratio
UA
PUM
ADDYY

Profitability

Metric
UA
PUM
ADDYY
Return on Assets (Normalized)
−7.69%−5.58%7.62%
Return on Equity (Normalized)
−22.00%−19.40%27.00%
Return on Invested Capital (Normalized)
−9.74%−7.22%14.77%
Return on Assets
UA
PUM
ADDYY

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LOCK|m@@>@mLOCK|VP^$2B

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