Under Armour (UA) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: N/A
• Average Volume (3M): 3.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -6.35%
• EPS Growth: -565.47%
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.09
• Shares Outstanding: 202,605,620
• 10 Day Avg. Volume: 2,826,044
• 30 Day Avg. Volume: 3,208,974
• PEG Ratio: 0.07
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -11.28
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: -47.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $4.96B

• Rating: 45 Neutral
• Price Target: $5.50 ▼(-9.39% Downside)
• Action: Reiterated Date: 03/08/26
• Date: Action: Reiterated 03/08/26

The score is held down primarily by deteriorating financial performance (losses and negative free cash flow) and limited valuation support due to a negative P/E and no dividend yield. Technicals are mixed, with a better longer-term trend but weak near-term momentum.

Positive Factors

Strong global brand & diversified product portfolio

Under Armour's broad brand and multi-category product set (training, running, team sports, golf, outdoor) provides durable market coverage and cross‑selling optionality. This diversity reduces dependency on any single segment and supports medium-term revenue resilience as demand shifts across categories.

Direct-to-consumer channel with margin capture

Ownership of DTC channels gives Under Armour structural advantages: higher per-unit margins, richer consumer data, and control of brand presentation. Over 2–6 months this supports margin improvement potential and long-term customer lifetime value if traffic and conversion stabilize.

Relatively healthy gross margins (~mid-40%)

Sustained mid‑40% gross margins indicate the company retains product pricing power or efficient sourcing economics. That stable core profitability provides room to invest in marketing or absorb operating cost optimization cycles, supporting recovery of operating margins if sales trends stabilize.

Negative Factors

Declining revenue and large net loss

A meaningful top‑line decline and a sizable net loss erode underlying earnings power and limit reinvestment capacity. Persistent revenue weakness reduces operating leverage and makes margin recovery harder, forcing either deeper cost cuts or incremental investment to restore demand over the medium term.

Negative free cash flow & inconsistent cash generation

Negative FCF despite positive operating cash flow signals ongoing investment needs or working capital pressure. Inconsistent cash conversion across years raises execution risk and constrains the company's ability to self‑fund growth, deleveraging, or strategic initiatives without external financing.

Moderate but rising leverage and negative ROE

Rising leverage paired with a sharply negative ROE indicates capital erosion and reduced balance‑sheet flexibility. Higher leverage increases fixed costs and refinancing risk, limiting strategic options and magnifying earnings volatility during recovery periods unless profitability is restored.

Under Armour Business Overview & Revenue Model

Company Description

Under Armour, Inc., together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company offers its apparel in compression, fitted, and loose fit types. It also provides footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company offers accessories, which include gloves, bags, headwear, and sports masks; and digital subscription and advertising services under the MapMyRun and MapMyRide platforms. It primarily offers its products under the UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, HOVR, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 422 brand and factory house stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.

How the Company Makes Money

Under Armour makes money primarily by selling branded athletic apparel, footwear, and accessories through two main channels: wholesale and direct-to-consumer (DTC). (1) Wholesale revenue comes from selling products in bulk to retailers and distributors (e.g., sporting goods chains, department stores, and regional partners) that then sell to end customers; this channel typically represents a significant portion of sales volume and is influenced by retailer ordering patterns, inventory levels, and promotional activity. (2) DTC revenue is generated through Under Armour-owned e-commerce websites and brand stores/outlet stores; DTC allows UA to capture retail margins, manage brand presentation, and sell directly to consumers, with sales affected by online traffic, conversion rates, store performance, and marketing effectiveness. Revenue is also influenced by product mix (apparel vs. footwear vs. accessories), seasonal demand, and geographic performance across regions (e.g., North America and international markets). In addition, Under Armour earns from licensing and other revenue streams when applicable (e.g., licensed products or brand-related agreements); if specific licensing contribution is needed, it is null.

Under Armour Financial Statement Overview

Summary

Financials have weakened materially: TTM revenue declined and profitability swung to a large net loss with negative EBITDA. The balance sheet remains serviceable with moderate but rising leverage, while cash generation is inconsistent with negative free cash flow despite positive operating cash flow.

Income Statement

Performance has deteriorated meaningfully versus prior years: TTM (Trailing-Twelve-Months) revenue declined (-1.451) and profitability turned sharply negative, with a net loss of about $520M and negative EBITDA. While gross margin held relatively steady in the mid‑40% range, the step-down in operating profitability from positive EBIT margins in FY2023–FY2024 to losses in FY2025/TTM is the key weakness.

Balance Sheet

Leverage is moderate but rising in the context of weaker earnings. Total debt is about $1.30B against $1.44B of equity in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.90), which is not extreme for the industry, but the swing to negative returns on equity (TTM ROE ~-29%) signals pressure on the capital base. Asset size remains stable, though declining equity from FY2024 to TTM reduces balance-sheet flexibility.

Cash Flow

Cash generation is inconsistent. TTM (Trailing-Twelve-Months) operating cash flow is positive (~$55M), but free cash flow is still negative (~-$46M), indicating limited cash available after investment needs. Prior years show volatility (strongly positive in FY2024 and FY2021, negative in FY2023 and FY2025), which raises execution risk and reduces confidence in near-term self-funding capacity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	4.99B	5.17B	5.69B	5.86B	5.69B	4.47B
Gross Profit	2.34B	2.47B	2.63B	2.60B	2.88B	2.14B
EBITDA	-91.01M	-62.88M	404.66M	416.10M	576.28M	-280.34M
Net Income	-519.71M	-201.27M	232.04M	374.46M	360.06M	-549.18M
Balance Sheet
Total Assets	4.63B	4.30B	4.76B	4.83B	4.45B	5.03B
Cash, Cash Equivalents and Short-Term Investments	1.06B	501.36M	858.69M	710.93M	1.01B	1.52B
Total Debt	2.25B	1.30B	1.44B	1.52B	1.48B	2.01B
Total Liabilities	3.19B	2.41B	2.61B	2.86B	2.72B	3.35B
Stockholders Equity	1.44B	1.89B	2.15B	1.97B	1.73B	1.68B
Cash Flow
Free Cash Flow	-45.91M	-228.00M	203.64M	-197.71M	595.07M	120.57M
Operating Cash Flow	54.88M	-59.32M	353.97M	-9.91M	664.83M	212.86M
Investing Cash Flow	-700.86M	-126.35M	-105.33M	-152.80M	-68.35M	66.34M
Financing Cash Flow	334.13M	-180.81M	-78.69M	-126.38M	-418.74M	436.85M

Under Armour Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UA, the sentiment is Negative. The current price of 6.07 is below the 20-day moving average (MA) of 6.61, below the 50-day MA of 6.47, and above the 200-day MA of 5.51, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 9.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UA.

Under Armour Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PVH	64 Neutral	$2.90B	215.89	6.99%	0.22%	0.52%	-45.80%
COLM	63 Neutral	$2.89B	17.00	10.53%	2.18%	2.76%	-7.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEVI	60 Neutral	$7.00B	15.25	27.00%	2.58%	-1.23%	109.67%
VFC	53 Neutral	$6.37B	6.01	14.79%	1.95%	-3.12%	―
UA	45 Neutral	$2.46B	―	-29.46%	―	-6.35%	-565.47%

Under Armour Corporate Events

Under Armour Appoints Reza Taleghani as New CFO

Under Armour announced that Reza Taleghani assumed the role of executive vice president and chief financial officer on February 11, 2026, and was simultaneously named the company’s principal financial officer. He succeeds David Bergman in that capacity, with Bergman staying on as a senior advisor during a transition period, signaling a structured handover in the company’s financial leadership.

The most recent analyst rating on (UA) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Under Armour stock, see the UA Stock Forecast page.

Under Armour announces major executive leadership reorganization

On January 15, 2026, Under Armour announced a slate of executive leadership changes designed to advance its ongoing transformation and strengthen its product, brand, and marketplace operations. Effective February 2, 2026, Kara Trent will become Chief Merchandising Officer, overseeing category management, product line architecture, and go-to-market initiatives to better align consumer demand with product investment and improve revenue, margins, and channel profitability, while Adam Peake steps into the role of President, Americas, to lead marketplace strategy and omni-channel growth across North and South America, leveraging his extensive experience across sales, marketing, and category leadership. As part of the same reorganization, Chief Product Officer Yassine Saidi will step down from his executive role on February 2, 2026, and will serve through February 2027 as a senior advisor focused on design expression and creative continuity, a move that maintains his influence over the brand’s aesthetic and long-term design voice while Under Armour consolidates leadership under a unified operating model aimed at driving sustainable growth and improved financial performance.

The most recent analyst rating on (UA) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Under Armour stock, see the UA Stock Forecast page.