1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
No-moat Under Armour outperformed our estimates in 2021’s first quarter and raised its guidance for the year as sportswear remains in high demand during the pandemic. We expect to lift our per share fair value estimate of $13 on the firm by a high-single-digit percentage but still view its shares as overpriced. Based on Under Armour’s updated guidance, its Class C shares are trading at more than 60 times 2021 adjusted EPS.
Under Armour develops, markets, and distributes athletic apparel, footwear, and accessories in North America and other territories. Consumers of its apparel include professional and amateur athletes, sponsored college and professional teams, and people with active lifestyles. The company sells merchandise through wholesale and direct-to-consumer channels, including e-commerce and more than 400 total factory house and brand house stores. Under Armour also operates a digital fitness app called MapMyFitness. The Baltimore-based company was founded in 1996.
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