Under Armour (UA) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: N/A
• Average Volume (3M): 5.09M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.99
• Revenue Growth: -6.35%
• EPS Growth: -565.47%
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.04
• Shares Outstanding: 205,535,890
• 10 Day Avg. Volume: 4,195,000
• 30 Day Avg. Volume: 5,094,536
• 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: 1.87
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.34
• Enterprise Value/Ebitda: 14.99
• 1Y Price Target: $7.50
• Price Target Upside: 80.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $4.00 ▼(-3.85% Downside)

Under Armour's overall stock score reflects significant financial challenges, including declining revenues and cash flow issues. Technical indicators and valuation metrics further contribute to a cautious outlook. However, potential future stabilization and strategic initiatives provide some optimism.

Positive Factors

Product Innovation

By focusing on innovative materials and reducing SKUs, Under Armour aims to enhance product differentiation and pricing power, supporting long-term growth.

Leadership Change

The appointment of a new CFO with a fresh perspective can drive strategic financial management, potentially improving operational efficiency and financial health.

Brand Momentum

Increased brand awareness among key demographics can lead to stronger market penetration and customer loyalty, supporting long-term revenue growth.

Negative Factors

Revenue Decline

Persistent revenue decline indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial stability.

Gross Margin Pressure

Declining gross margins due to tariffs and supply chain issues can erode profitability, limiting the company's ability to reinvest in growth initiatives.

Cash Flow Issues

Ongoing cash flow challenges can strain operational funding and strategic investments, hindering long-term growth and financial resilience.

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

Under Armour faces a challenging financial landscape with declining revenues and profitability pressures. The income statement shows a slight improvement in gross profit margin but low net profit margin and declining revenue. The balance sheet is stable with manageable leverage, but cash flow issues are significant, with negative operating and free cash flows.

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	5.38B	5.16B	5.70B	5.90B	5.68B	4.47B
Gross Profit	2.62B	2.47B	2.63B	2.64B	2.86B	2.16B
EBITDA	234.92M	8.56M	372.34M	399.04M	667.95M	321.30M
Net Income	36.57M	-201.27M	232.04M	374.46M	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: Negative
• Last Price: 4.16
• 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 Negative. The current price of 4.16 is below the 20-day moving average (MA) of 4.24, below the 50-day MA of 4.44, and below the 200-day MA of 5.47, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, 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
LEVI	79 Outperform	$8.46B	18.68	25.99%	2.51%	3.20%	200.49%
COLM	69 Neutral	$3.01B	16.80	10.84%	2.10%	2.76%	-7.83%
PVH	66 Neutral	$3.46B	11.33	6.70%	0.20%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.49B	84.67	6.39%	1.83%	-4.56%	―
HBI	49 Neutral	―	―	140.06%	―	-19.47%	―
UA	47 Neutral	$1.88B	18.65	-4.56%	―	-6.35%	-565.47%

Under Armour Corporate Events

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.

Under Armour Appoints New CFO Amid Revenue Decline

On November 6, 2025, Under Armour announced the appointment of Reza Taleghani as Executive Vice President and Chief Financial Officer, effective February 2026. This leadership change follows the expected departure of current CFO David Bergman, who will remain as a senior advisor to ensure a smooth transition. The company also released its second quarter fiscal 2026 results, reporting a 5% revenue decline to $1.3 billion, with North American revenue down 8% and international revenue up 2%. Despite these challenges, Under Armour is encouraged by brand momentum in North America and continues to focus on its strategic initiatives. The company repurchased $25 million of its Class C common stock during the quarter and provided a fiscal 2026 outlook, anticipating a 4-5% revenue decrease and a decline in gross margin due to higher tariffs and unfavorable channel mix.