Under Armour (UA) AI Stock Analysis

• Market Cap: $3.26B
• Dividend Yield: N/A
• Average Volume (3M): 5.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• 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: 3,805,263
• 30 Day Avg. Volume: 5,700,556
• 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: 1.54
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: -55.22
• 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: 48 Neutral
• Price Target: $7.50 ▲(23.56% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held down primarily by deteriorating financial performance (losses and negative free cash flow) and a negative P/E that reflects ongoing profitability challenges. Technical momentum is a key offset, with the stock trading above major moving averages, but overbought signals add near-term risk. Earnings-call guidance remains cautious due to expected revenue declines and tariff pressure, despite some operational and brand-improvement initiatives.

Positive Factors

Product innovation & SKU rationalization

Cutting 25% of SKUs and refocusing the materials library (including NEOLAST) is a durable operating move: it simplifies assortment, improves inventory turns, supports higher price points via differentiated fabrics, and reduces promotional dependency—helping margins and execution over the next several quarters.

Management strengthening

A seasoned CFO hire and broader leadership reorganization signal an institutional focus on financial discipline and execution. Durable management upgrades can improve capital allocation, cost controls, and reporting rigor, materially aiding a multi-quarter turnaround and restructuring plan execution.

International & licensing growth

Double-digit growth in EMEA and a 17% licensing lift provide geographic and revenue diversification. Strong international and licensing momentum reduces reliance on weakened North America, supports revenue resiliency, and offers higher-margin or asset-light growth vectors over the coming 2-6 months.

Negative Factors

Profitability deterioration

A large net loss and negative EBITDA represent a material deterioration in core profitability. This undermines retained earnings and limits reinvestment capacity, constrains strategic flexibility, and increases reliance on external financing or asset sales to fund operations over multiple quarters.

Inconsistent cash generation

Positive operating cash flow but negative free cash flow and historical volatility signal constrained self-funding: capital spending and working-capital swings can force external financing, limit margin recovery programs, and raise execution risk for the restructuring over the next several quarters.

Tariff-driven margin pressure

Material margin compression from tariffs and supply-chain headwinds is a structural risk: several hundred basis points of pressure reduces operating leverage and gives less room to absorb promotional activity or invest in marketing, potentially prolonging recovery even if sales stabilize.

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 generates revenue through multiple streams, primarily from the sale of its performance apparel, footwear, and accessories. The company sells its products through direct-to-consumer channels, including its own retail stores and e-commerce platform, as well as through wholesale distribution to third-party retailers. Key revenue streams include the sales of men's, women's, and youth athletic apparel and footwear. Additionally, Under Armour has formed significant partnerships and sponsorships with professional athletes, teams, and sporting events, which enhance brand visibility and drive sales. The company also invests in marketing and advertising to promote its products, leveraging its association with high-profile athletes and sports endorsements to attract consumers and increase market share.

Under Armour Financial Statement Overview

Summary

Financial performance is weak: revenue is down TTM, profitability swung to a large net loss with negative EBITDA, and free cash flow is negative despite slightly positive operating cash flow. The balance sheet is still serviceable with moderate leverage, but negative ROE and declining equity reduce flexibility.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UA, the sentiment is Positive. The current price of 6.07 is below the 20-day moving average (MA) of 6.85, above the 50-day MA of 5.77, and above the 200-day MA of 5.48, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 78.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UA.

Under Armour Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLM	68 Neutral	$3.33B	19.08	10.16%	2.18%	2.76%	-7.83%
PVH	64 Neutral	$3.16B	10.37	6.70%	0.22%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEVI	60 Neutral	$8.63B	19.81	23.63%	2.58%	-1.23%	109.67%
VFC	53 Neutral	$7.74B	35.70	12.93%	1.95%	-3.12%	―
UA	48 Neutral	$3.26B	―	-30.39%	―	-6.35%	-565.47%

Under Armour Corporate Events

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.

Under Armour Updates 2025 Restructuring Plan

On November 13, 2025, Under Armour announced an update to its fiscal year 2025 restructuring plan, increasing the expected pre-tax restructuring charges by $95 million to a total of up to $255 million. This plan, which includes the separation of the Curry Brand, aims to enhance financial and operational efficiencies and is expected to be substantially complete by the end of fiscal year 2026. Additionally, Under Armour and Stephen Curry revealed plans to separate the Curry Brand from Under Armour, allowing each to focus on their core strengths. This strategic move is intended to enable Under Armour to concentrate on its core brand while Curry Brand gains independence to pursue its growth and mission.

The most recent analyst rating on (UA) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Under Armour stock, see the UA Stock Forecast page.