Last Updated: 14 Nov 2024
Executive Summary
Under Armour Inc C (UA) is a leading American sports equipment company with a market capitalization of $39.39 billion. Despite facing challenges in recent quarters, the company's strong brand recognition, innovative products, and global reach position it well for long-term growth.
Company Overview
Under Armour designs, manufactures, and distributes footwear, apparel, and accessories for athletes and fitness enthusiasts. The company's products are sold through its own retail stores, online platforms, and third-party retailers worldwide. Under Armour has a strong brand presence and is known for its performance-enhancing technologies and innovative designs.
Fundamental Analysis
Revenue: UA's revenue has grown steadily over the past few years, reaching $5.4 billion in the trailing twelve months (TTM). However, the company has recently experienced a slight decline in revenue due to supply chain issues and macroeconomic headwinds.
Profitability: UA's profitability has been impacted by rising costs and operational inefficiencies. The company's profit margin is currently negative, and its diluted EPS TTM is -$0.04.
Valuation: UA's current price-to-sales ratio (0.729) and price-to-book ratio (1.875) are below industry averages, indicating potential undervaluation. The company's forward PE ratio of 37.45 suggests that the market expects a significant recovery in profitability in the coming years.
Technical Analysis
Trend: UA's stock price has been trending down in recent months, breaking below its 50-day and 200-day moving averages.
Support and Resistance: The stock has found support at around $8.00 and resistance at $9.00.
Momentum: The stock's momentum indicators are currently neutral, suggesting a possible reversal in the downtrend.
Short Term Outlook
In the short term, UA's stock price is likely to remain volatile due to the ongoing macroeconomic uncertainty. The company's ability to improve its profitability and address supply chain issues will be key factors in determining its performance.
Long Term Outlook
Over the long term, UA has the potential to regain its growth trajectory. The company's strong brand, innovative products, and global reach provide a solid foundation for future success. However, the competitive nature of the industry and the need for operational efficiency will continue to challenge the company.
Analyst Recommendations
Analysts are currently divided on UA's stock. One analyst has a "Buy" rating, while the other maintains a "Hold" rating. The consensus analyst target price is $9.20, indicating a potential upside of over 4.5% from the current price of $8.79.
