Under Armour (UA) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: N/A
• Average Volume (3M): 5.89M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.01
• Revenue Growth: -8.02%
• EPS Growth: N/A
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.02
• Shares Outstanding: 205,535,890
• 10 Day Avg. Volume: 6,734,574
• 30 Day Avg. Volume: 5,888,973
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 14.80
• 1Y Price Target: $5.00
• Price Target Upside: 2.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $5.00 ▲(2.25% Upside)

Under Armour's overall stock score reflects significant financial and operational challenges, with declining revenues and profitability pressures being the most impactful factors. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. While strategic financial management and some regional successes offer a glimmer of hope, substantial hurdles remain.

Under Armour Business Overview & Revenue Model

Company Description

Under Armour (UA) is a global leader in sports apparel and footwear, founded in 1996 by Kevin Plank. The company is headquartered in Baltimore, Maryland, and is known for its innovative performance gear that enhances athletic performance. Under Armour operates primarily in the athletic apparel and footwear sectors, offering a wide range of products including moisture-wicking shirts, compression gear, shoes, and accessories designed for various sports and fitness activities. The brand is also recognized for its commitment to technology integration in sports performance, including smart apparel and fitness tracking.

How the Company Makes Money

Under Armour generates revenue through multiple streams, primarily from the sale of its apparel, footwear, and accessories. The company sells its products through a combination of direct-to-consumer channels, including branded retail stores and e-commerce platforms, and wholesale distribution to third-party retailers. Key revenue streams include sales from performance apparel, training gear, and footwear, with a significant portion of revenue derived from international markets. Additionally, Under Armour benefits from strategic partnerships and collaborations with professional athletes, sports teams, and fitness influencers, which help to bolster brand visibility and drive sales. The company also invests in marketing campaigns and product innovations to enhance customer engagement and loyalty, further contributing to its earnings.

Under Armour Financial Statement Overview

Summary

Under Armour faces a challenging financial landscape with declining revenues and profitability pressures. While the balance sheet shows a stable leverage position, cash flow issues are a significant concern. The company must focus on improving operational efficiency and cash flow management to enhance its financial health.

Income Statement

Under Armour's income statement shows a mixed performance. The TTM data indicates a slight improvement in gross profit margin at 48.1%, but the net profit margin remains low at 1.99%. Revenue has declined by 0.96% in the TTM period, reflecting challenges in maintaining growth. The EBIT and EBITDA margins are modest, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.89, indicating manageable leverage. However, the return on equity is low at 5.25%, pointing to underwhelming profitability relative to equity. The equity ratio stands at 38.5%, showing a balanced asset financing structure.

Cash Flow

Cash flow analysis highlights significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is high at 1.97, but this is due to negative cash flows rather than strong cash generation. The company needs to improve cash flow management to support its operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.11B	5.16B	5.70B	5.90B	5.68B	4.47B
Gross Profit	2.47B	2.47B	2.63B	2.65B	2.86B	2.16B
EBITDA	237.97M	8.56M	372.34M	421.43M	708.47M	321.30M
Net Income	101.55M	-201.27M	232.04M	386.77M	360.06M	-541.93M
Balance Sheet
Total Assets	4.87B	4.30B	4.76B	4.83B	4.45B	5.03B
Cash, Cash Equivalents and Short-Term Investments	910.99M	501.36M	858.69M	710.93M	1.01B	1.52B
Total Debt	1.68B	1.30B	1.44B	1.52B	1.48B	2.01B
Total Liabilities	2.99B	2.41B	2.61B	2.86B	2.72B	3.35B
Stockholders Equity	1.87B	1.89B	2.15B	1.97B	1.73B	1.68B
Cash Flow
Free Cash Flow	-321.81M	-228.00M	203.64M	-197.71M	595.07M	120.57M
Operating Cash Flow	-163.44M	-59.32M	353.97M	-9.91M	664.83M	212.86M
Investing Cash Flow	-166.03M	-126.35M	-105.33M	-152.80M	-68.35M	66.34M
Financing Cash Flow	334.72M	-180.81M	-78.69M	-126.38M	-418.74M	436.85M

Under Armour Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 4.89 is below the 20-day moving average (MA) of 5.03, below the 50-day MA of 5.94, and below the 200-day MA of 6.57, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 38.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UA.

Under Armour Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTB	71 Outperform	$4.41B	17.69	58.07%	2.59%	3.47%	5.86%
ZGN	71 Outperform	$3.38B	24.92	8.89%	1.61%	2.26%	-37.52%
COLM	67 Neutral	$3.09B	14.35	12.93%	2.12%	0.81%	4.86%
Sector *	61 Neutral	$17.96B	13.14	-5.36%	3.00%	1.25%	-13.95%
VFC	55 Neutral	$5.80B	68.32	7.83%	2.43%	-7.41%	―
HBI	55 Neutral	$2.23B	13.72	154.00%	―	-27.88%	―
UA	47 Neutral	$2.13B	21.21	5.50%	―	-8.02%	―

Under Armour Corporate Events

Under Armour Discharges 3.250% Senior Notes

On August 18, 2025, Under Armour, Inc. deposited sufficient funds with Wilmington Trust to satisfy and discharge its 3.250% Senior Notes due 2026. This action releases the company from its remaining obligations under these notes, although the principal amount will remain on the balance sheet as ‘Restricted Investments’ until the maturity date of June 15, 2026.

Under Armour Closes $400M Senior Notes Offering

On June 23, 2025, Under Armour closed a private offering of $400 million in senior notes due 2030, with an interest rate of 7.250%. The proceeds, along with other financial resources, are intended to redeem or retire $600 million of its outstanding notes due 2026. This strategic financial maneuver aims to manage the company’s debt obligations and improve its financial positioning.

Under Armour Amends Credit Agreement and Offers Senior Notes

On June 16, 2025, Under Armour announced an amendment to its existing credit agreement, extending the maturity date to June 2030 and making several changes, including adjustments to the leverage ratio and expansion options. Additionally, Under Armour commenced a private offering of $400 million in Senior Notes due 2030, intending to use the proceeds to retire its outstanding 3.25% Senior Notes due 2026, reflecting strategic financial management aimed at optimizing its debt structure.

Under Armour Reaches Settlement in Derivative Lawsuits

Under Armour has reached a proposed settlement to resolve two consolidated derivative lawsuits filed against certain current and former officers and directors. The settlement, executed on May 7, 2025, includes implementing corporate governance measures for three years and a payment of $8.9 million to the company, funded by insurance proceeds. The settlement is pending final court approval, with a hearing scheduled for August 14, 2025. This resolution aims to address allegations of fiduciary breaches related to past sales practices and financial disclosures, potentially impacting the company’s governance and stakeholder relations.