Last Updated: 15 Sep 2024
Executive Summary
Under Armour Inc. (UA) is an American sports equipment company that manufactures footwear, sports and casual apparel. The company has a market capitalization of $3.22 billion and is traded on the New York Stock Exchange (NYSE). The latest stock price is $7.24.
Company Overview
Under Armour was founded in 1996 by Kevin Plank, a former University of Maryland football player. The company's mission is to "make all athletes better through passion, design and the relentless pursuit of innovation." Under Armour's products are sold in over 1,300 retail stores in the United States and Canada, as well as in over 70 countries around the world.
Fundamental Analysis
Under Armour's financial performance has been mixed in recent years. The company has reported losses in three of the past five years. In fiscal 2023, Under Armour reported a loss of $204 million on revenue of $5.57 billion. The company's gross profit margin was 43.5%, and its operating margin was -3.6%.
Under Armour's balance sheet is strong. The company has $1.2 billion in cash and equivalents and $1.5 billion in debt. Under Armour's book value is $4.20 per share.
Technical Analysis
Under Armour's stock price has been in a downtrend since early 2021. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.5, which indicates that the stock is oversold.
Short Term Outlook
Under Armour's stock price is likely to remain under pressure in the short term. The company is facing challenges from both Nike and Adidas, and it is also being impacted by the global economic slowdown.
Long Term Outlook
Under Armour has a strong brand and a loyal customer base. The company is also well-positioned to benefit from the growing athleisure trend. However, Under Armour needs to improve its financial performance in order to justify its current valuation.
Analyst Recommendations
Analysts are mixed on Under Armour's stock. One analyst has a buy rating on the stock, while another has a hold rating. The average analyst price target is $9.20.
