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Under Armour Inc Class C UA

Morningstar Rating
$6.47 +0.11 (1.73%)
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Company Report

Under Armour: Plank Hopes for Return to Glorious Past After Years of Failure; Shares Undervalued

In a move that always seemed like a strong possibility, no-moat Under Armour has shown Stephanie Linnartz the door and restored cofounder Kevin Plank to the CEO position. Plank will be replaced as chairman by Mohamed El-Erian, the well-known former CEO of bond giant Pimco. Plank had left the top spot at the beginning of 2020 after some embarrassing press and declining results but had always remained heavily involved as Under Armour’s executive chairman, brand chief, and controlling shareholder. Plank’s original successor as CEO was Patrik Frisk, but he was let go after about two and a half years. At the time, Plank cited a need to return to the firm’s glory days of strong sales growth. Frisk was succeeded on an interim basis by Colin Browne, the company’s chief operating officer until he was passed over for the permanent position in favor of Linnartz, a former executive at wide-moat Marriott. While Linnartz had strong experience in helping to build digital tools and a loyalty program at Marriott, she was an unorthodox choice for Under Armour as she had no experience in apparel and footwear. As it turned out, she lasted just over a year in the job. In her brief tenure, she brought in many executives and launched a loyalty program, but, like her successors, she struggled to find much sales growth.

Price vs Fair Value

UA is trading at a 59% discount.
Price
$6.36
Fair Value
$37.70
Uncertainty
High
1-Star Price
$81.87
5-Star Price
$4.90
Economic Moat
Ckpv
Capital Allocation
Kygvbgt

Bulls Say, Bears Say

Bulls

Under Armour has implemented a plan called Protect This House 3 that could make it more competitive. It has introduced a loyalty program, is upgrading its digital capabilities, and is introducing more stylish merchandise.

Bears

Inflation and slowing consumer spending on activewear have impeded Under Armour’s turnaround efforts.

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News

Trading Information

Previous Close Price
$6.36
Day Range
$6.406.58
52-Week Range
$5.868.99
Bid/Ask
$6.24 / $6.62
Market Cap
$2.82 Bil
Volume/Avg
2.8 Mil / 3.4 Mil

Key Statistics

Price/Earnings (Normalized)
10.11
Price/Sales
0.50
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.66%

Company Profile

Under Armour develops, markets, and distributes athletic apparel, footwear, and accessories in North America, Asia-Pacific, Europe, and other regions. 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 direct-to-consumer, including e-commerce and more than 400 combined factory house and brand house stores, and wholesale channels. Under Armour also operates a digital fitness app called MapMyFitness. The Baltimore-based company was founded in 1996.
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Stock Style Box
Small Core
Total Number of Employees
14,800

Competitors

Valuation

Metric
UA
LULU
ADDYY
Price/Earnings (Normalized)
10.1127.1938.23
Price/Book Value
1.2710.367.83
Price/Sales
0.504.591.71
Price/Cash Flow
6.3421.0635.13
Price/Earnings
UA
LULU
ADDYY

Financial Strength

Metric
UA
LULU
ADDYY
Quick Ratio
1.181.560.53
Current Ratio
2.132.491.22
Interest Coverage
77.121.16
Quick Ratio
UA
LULU
ADDYY

Profitability

Metric
UA
LULU
ADDYY
Return on Assets (Normalized)
5.88%26.78%0.75%
Return on Equity (Normalized)
14.17%45.67%2.96%
Return on Invested Capital (Normalized)
8.23%34.23%2.15%
Return on Assets
UA
LULU
ADDYY
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GIL
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VFC
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UAA
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