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Under Armour, Inc. (UAA) Stock Guide

September 19, 2020
22
Bull Case
  • Forward PEG ratio low relative to industry peers
  • Cash/Debt ratio is higher than the industry and sector averages
Bear Case
  • Stock price high relative to the 52-week range
  • Revenue growth lower than the industry and sector averages
  • Company’s profitability is declining
  • Forward P/E ratio high relative to industry peers
  • Average analyst stock price below current stock price
  • High short share of float
  • High short interest

Before we start: if you're looking for UAA stock price, you can quickly find it out by visiting Finny and typing "UAA quote". If you're looking for a quick scoop on UAA stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "UAA". You'll get all this info in one place. Or you can just type "UAA news" to get the latest stock news.

Looking to buy or sell Under Armour, Inc. (UAA)? Interested in getting the full scoop on UAA, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this UAA stock guide, we'll address key questions about UAA, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are UAA earnings?
2. What is UAA stock forecast (i.e., prediction)?
3. UAA buy or sell? What is UAA Finny Score?
4. What are the reasons to buy UAA? Why should I buy UAA stock?
5. What are the reasons to sell UAA? Why should I sell UAA stock?
6. What are UAA key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are UAA earnings?

UAA trailing 12-month earnings per share (EPS) is -$1.51.

Analyst Predictions

2. What is UAA stock forecast (i.e., prediction)?

Based on UAA analyst price targets, UAA stock forecast is $10.39 (for a year from now). That means the average analyst price target for UAA stock is $10.39. The prediction is based on 33 analyst estimates.

The low price target for UAA is $5.00, while the high price target is $16.00.

UAA analyst rating is Hold.

Analysis

3. UAA buy or sell? What is UAA Finny Score?

Our quantitative analysis shows 2 reasons to buy and 7 reasons to sell UAA, resulting in Finny Score of 22.

4. What are the reasons to buy UAA? Why should I buy UAA stock?

Here are the reasons to buy UAA stock:

  • Under Armour's strategy to reach digitally connected athletes should offer long-term competitive advantages, including consumer insights on marketing and new product development.
  • As Under Armour expands globally, it has been able to secure sponsorships with marquee names and teams. Only a few sporting goods companies are large enough to compete.
  • Under Armour has developed credibility through innovative marketing, driving demand for products and technologies that didn't exist even just a few years ago, and increasing average prices.
  • The company has also entered into deal with rising athletes including basketball star Stephen Curry and golfer Jordan Spieth, which will help in enhancing brand recognition and get an edge over its competitors. Taken together, these strategies will not only help in augmenting market share but also provide a competitive platform in the global sportswear retail market.
  • With increasing consciousness about fitness among people, sports apparel makers are entering into the business of fitness gadgets and other tracking platforms to attract customers. The acquisition of MapMyFitness in December 2013 for $150 million by Under Armour was a step forward in the same direction. MapMyFitness, which has flagship consumer brands such as MapMyRun, MapMyRide, and MapMyWalk, offers members to track over 600 kinds of workouts on their mobile devices.
  • In the past few years Under Armour has been trying to boost its DTC business (offering merchandise via network of brand and factory house stores and its website and catalogs) through store expansion initiatives and enhancement of its eCommerce platform. This strategy has enhanced DTC’s contribution to total revenues, which has reached 25% in 2016 from 6% in 2005. In fourth-quarter 2017, DTC’s contribution to total revenues increased within 14-35% of the global revenues.
  • UAA PEG ratio (P/E adjusted for growth) is 1.69, which is low compared to its industry peers’ PEG ratios. See UAA PEG chart.
  • UAA cash to debt ratio is 0.47, higher than the average industry (0.15) and sector (0.13) cash to debt ratio. See UAA cash to debt chart.

5. What are the reasons to sell UAA? Why should I sell UAA stock?

Let's look at the reasons to sell UAA stock (i.e., the bear case):

  • Plans to more heavily invest in footwear and Connected Fitness could make it more difficult to increase gross and operating margins over the near term.
  • Under Armour is increasing its retail ownership and wholesale door intensity. Although the firm is roughly one tenth the size of Nike, it already has nearly half the number of North American wholesale doors.
  • Although it is investing in new markets and verticals, Under Armour is still dependent on its home market and core apparel offerings. By increasing its own direct-to-consumer distribution, it risks alienating core retail partners.
  • Under Armour’s earnings missed the Zacks Consensus Estimate after beating in the preceding three quarters. It reported break-even adjusted earnings, missing the consensus mark of 1 cent. Notably, the bottom line was largely impacted by continuous decline in North America sales.
  • Under Armour has been grappling with higher interest expenses. In fourth- quarter 2017, the company’s interest and other expenses increased to nearly $12 million in comparison with $10 million in the prior- year quarter. Further, it anticipates interest and other expenses to rise roughly $45 million in 2018 from $38.2 million last year.
  • Considering the price-to-earnings (P/E) ratio, Under Armour looks pretty overvalued when compared to the industry as well as the S&P 500.
  • UAA stock price ($11.52) is close to the 52-week high ($12.23). Perhaps now is a good time to sell? See UAA price chart.
  • UAA quarterly revenue growth was -40.60%, lower than the industry and sector average revenue growth (1.75% and 0.78%, respectively). See UAA revenue growth chart.
  • UAA profitability is declining. The YoY profit margin change was -5.07 percentage points. See UAA profitability chart.
  • UAA forward P/E ratio is 102.50, which is high compared to its industry peers’ P/E ratios. See UAA forward P/E ratio chart.
  • UAA average analyst price target ($10.39) is below its current price ($11.52). See UAA price target chart.
  • UAA short share of float is 11.84%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See UAA short share of float chart.
  • UAA short interest (days to cover the shorts) ratio is 2.3. The stock garners more short interest than the average industry, sector or S&P 500 stock. See UAA short interest ratio chart.

Key Stats

6. What are UAA key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for UAA:

Metrics UAA
Price $14.65
Average Price Target / Upside $10.39 / -29.10%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Apparel Manufacturing
Sector Consumer Cyclical
Number of Employees 15,000
Market Cap $5.31B
Forward P/E Ratio 125.40
Price/Book Ratio 1.18
Revenue (TTM) $4.51B
YoY Quarterly Revenue Growth -40.60%
Profit Margin -15.21%

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