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Under Armour Inc Class A UAA

Morningstar Rating
$6.85 +0.07 (1.03%)
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Company Report

Under Armour Lacks an Advantage, but the Global Sportswear Market Remains Dynamic

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 firm’s North American sales increased to $4 billion from $700 million and it passed narrow-moat Adidas as the region’s second-largest athletic apparel brand (after wide-moat Nike). However, Under Armour’s North America sales are little changed over the past seven years as it has been challenged by established competitors and new entrants. While Under Armour’s new Protect This House 3 plan is designed to make the brand more competitive in the U.S. through its merchandising, e-commerce, and supply chain efforts, we think it has fallen behind some peers on innovation, sponsorships, and style.

Price vs Fair Value

UAA is trading at a 56% discount.
Price
$6.78
Fair Value
$79.20
Uncertainty
High
1-Star Price
$53.72
5-Star Price
$5.10
Economic Moat
Lcc
Capital Allocation
Wkclngpb

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
$6.78
Day Range
$6.776.93
52-Week Range
$6.299.50
Bid/Ask
$6.83 / $6.99
Market Cap
$2.98 Bil
Volume/Avg
489 / 7.1 Mil

Key Statistics

Price/Earnings (Normalized)
10.89
Price/Sales
0.54
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.56%

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
UAA
LULU
ADDYY
Price/Earnings (Normalized)
10.8927.5942.12
Price/Book Value
1.3710.518.63
Price/Sales
0.544.661.88
Price/Cash Flow
6.8321.3638.70
Price/Earnings
UAA
LULU
ADDYY

Financial Strength

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

Profitability

Metric
UAA
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
UAA
LULU
ADDYY
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Economic Moat
Market Cap
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RL
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PVH
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GIL
Gildan Activewear IncWxhksjvvnTpdgq$5.9 Bil
VFC
VF CorpMqptfjfMwvpfp$5.0 Bil
UA
Under Armour Inc Class CQwhbtspbnJnpx$2.9 Bil
HBI
Hanesbrands IncBnbcxkcdTsxwjb$1.7 Bil

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