NYSE:UAA

Stock Analysis Report

Executive Summary

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Under Armour's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UAA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.9%

UAA

11.4%

US Luxury

9.4%

US Market


1 Year Return

-52.3%

UAA

-17.9%

US Luxury

-6.8%

US Market

Return vs Industry: UAA underperformed the US Luxury industry which returned -18.5% over the past year.

Return vs Market: UAA underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

UAAIndustryMarket
7 Day26.9%11.4%9.4%
30 Day-8.3%-7.0%-3.9%
90 Day-47.2%-25.2%-16.5%
1 Year-52.3%-52.3%-16.2%-17.9%-4.8%-6.8%
3 Year-45.8%-45.8%30.5%24.3%23.4%15.2%
5 Year-75.5%-75.5%12.1%4.4%41.3%25.7%

Price Volatility Vs. Market

How volatile is Under Armour's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Under Armour undervalued compared to its fair value and its price relative to the market?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UAA ($9.75) is trading below our estimate of fair value ($14.13)

Significantly Below Fair Value: UAA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UAA is poor value based on its PE Ratio (47.7x) compared to the Luxury industry average (11.4x).

PE vs Market: UAA is poor value based on its PE Ratio (47.7x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: UAA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: UAA is overvalued based on its PB Ratio (2x) compared to the US Luxury industry average (0.8x).


Next Steps

Future Growth

How is Under Armour forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UAA's forecast earnings growth (30.2% per year) is above the savings rate (1.7%).

Earnings vs Market: UAA's earnings (30.2% per year) are forecast to grow faster than the US market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UAA's revenue (2.2% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: UAA's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UAA's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Under Armour performed over the past 5 years?

-36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UAA has high quality earnings.

Growing Profit Margin: UAA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: UAA's earnings have declined by -36.6% per year over the past 5 years.

Accelerating Growth: UAA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: UAA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: UAA's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Under Armour's financial position?


Financial Position Analysis

Short Term Liabilities: UAA's short term assets ($2.7B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: UAA's short term assets ($2.7B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: UAA's debt to equity ratio (27.6%) is considered satisfactory.

Reducing Debt: UAA's debt to equity ratio has increased from 21.4% to 27.6% over the past 5 years.

Debt Coverage: UAA's debt is well covered by operating cash flow (85.9%).

Interest Coverage: UAA's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Under Armour's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate UAA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UAA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UAA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Patrik Frisk (56yo)

0.25

Tenure

US$6,285,294

Compensation

Mr. Patrik Frisk has been Chief Executive Officer of Under Armour, Inc. since January 1, 2020 and its President since July 10, 2017. He served as the and Chief Operating Officer of Under Armour, Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Patrik's total compensation ($USD6.29M) is about average for companies of similar size in the US market ($USD5.56M).

Compensation vs Earnings: Patrik's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Plank
Founder24.25yrsUS$6.56m15.15% $676.5m
Patrik Frisk
CEO, President & Director0.25yrUS$6.29m0.055% $2.5m
David Bergman
Chief Financial Officerno dataUS$2.62m0.029% $1.3m
Paul Fipps
Chief Experience Officerno dataUS$4.77m0.084% $3.7m
Kevin Eskridge
Chief Product Officer2.92yrsUS$2.73m0.048% $2.1m
Colin Browne
Chief Operating Officer0.17yrUS$2.74m0.025% $1.1m
Aditya Maheshwari
Principal Accounting Officer0.083yrno data0.0029% $130.9k
Lance Allega
Senior Vice President of Investor Relations & Corporate Development3.25yrsno datano data
John Stanton
Executive VP7.08yrsno data0.053% $2.4m
Kelley McCormick
Senior Vice President of Corporate Communications2.33yrsno datano data

2.6yrs

Average Tenure

46yo

Average Age

Experienced Management: UAA's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Plank
Founder24.25yrsUS$6.56m15.15% $676.5m
Patrik Frisk
CEO, President & Director0.25yrUS$6.29m0.055% $2.5m
Douglas Coltharp
Independent Director15.33yrsUS$235.00k0.044% $2.0m
Harvey Sanders
Independent Director15.42yrsUS$237.50k0.082% $3.7m
Karen Katz
Independent Director5.5yrsUS$225.00k0.00089% $39.7k
Jerri DeVard
Independent Director2.92yrsUS$225.00k0.00027% $12.1k
George Bodenheimer
Independent Director5.67yrsUS$225.00k0.0013% $59.4k
Mohamed El-Erian
Independent Director1.5yrsUS$206.25k0.0034% $151.4k
Alvin Krongard
Lead Director13.92yrsUS$265.00k0.030% $1.3m
Eric Olson
Independent Director7.75yrsUS$225.00kno data

6.7yrs

Average Tenure

61yo

Average Age

Experienced Board: UAA's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Under Armour, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Under Armour, Inc.
  • Ticker: UAA
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$4.466b
  • Shares outstanding: 451.92m
  • Website: https://www.underarmour.com

Number of Employees


Location

  • Under Armour, Inc.
  • 1020 Hull Street
  • Baltimore
  • Maryland
  • 21230
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UAANYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 2005
U9RDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2005
U9RXTRA (XETRA Trading Platform)YesClass A Common StockDEEURNov 2005
UAA *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNNov 2005
UAASWX (SIX Swiss Exchange)YesClass A Common StockCHCHFNov 2005
0R2ILSE (London Stock Exchange)YesClass A Common StockGBUSDNov 2005
UAAWBAG (Wiener Boerse AG)YesClass A Common StockATEURNov 2005
U9RETLX (Eurotlx)YesClass A Common StockITEURNov 2005
UANYSE (New York Stock Exchange)Class C Common StockUSUSDApr 2016
U9RADB (Deutsche Boerse AG)Class C Common StockDEEURApr 2016
U9RAXTRA (XETRA Trading Platform)Class C Common StockDEEURApr 2016
UAAC *BMV (Bolsa Mexicana de Valores)Class C Common StockMXMXNApr 2016
0LIKLSE (London Stock Exchange)Class C Common StockGBUSDApr 2016
UACWBAG (Wiener Boerse AG)Class C Common StockATEURApr 2016
U1AI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company offers its apparel in compression, fitted, and loose types to be worn in hot and cold. It also provides various footwear products for running, basketball, cleated sports, training, and outdoor. In addition, the company offers accessories, which include gloves, bags, and headwear; and digital fitness subscriptions, as well as digital advertising through MapMyFitness, MyFitnessPal, and Endomondo platforms. It primarily offers its products under the HEATGEAR, COLDGEAR, RUSH or RECOVER, UA Logo, UNDER ARMOUR, UA, ARMOUR, PROTECT THIS HOUSE, I WILL, ARMOURBOX, ARMOUR BRA, and ARMOUR FLEECE, as well as MyFitnessPal, MapMyFitness, and UNDER ARMOUR CONNECTED FITNESS brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 388 brand and factory house stores, as well as through e-commerce websites. Under Armour, Inc. was founded in 1996 and is headquartered in Baltimore, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 00:33
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.