Under Armour Inc - Class C (UA)
NYSE:UA
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Under Armour
(NYSE:UA)
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Rating:43Neutral
Price Target:
$6.50
▲(7.08% Upside)
Action:ReiteratedDate:03/26/26
The score is held down primarily by deteriorating financial performance (losses and negative free cash flow) and weak technical momentum (below key moving averages with negative MACD). The earnings call provides some offset via improved adjusted profit guidance and execution initiatives, but revenue declines, margin headwinds, and significant charges keep the overall risk profile elevated; valuation is also less supportive due to a negative P/E and no dividend yield.
Positive Factors
Omnichannel Brand & Distribution
Under Armour’s dual wholesale + direct-to-consumer model provides durable distribution breadth and margin optionality. Owning DTC channels allows higher retail margins and brand control, while wholesale maintains scale and reach across categories, supporting steadier revenue mix over months.
Negative Factors
Deteriorated Profitability
A large TTM net loss and negative EBITDA reflect a material earnings deterioration that reduces reinvestment capacity and increases reliance on restructuring to restore profitability; impaired returns (TTM ROE ~-29%) constrain balance-sheet flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel Brand & Distribution
Under Armour’s dual wholesale + direct-to-consumer model provides durable distribution breadth and margin optionality. Owning DTC channels allows higher retail margins and brand control, while wholesale maintains scale and reach across categories, supporting steadier revenue mix over months.
Read all positive factors
Under Armour (UA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.70B
Dividend YieldN/A
Average Volume (3M)2.50M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-6.20%
EPS Growth-322.74%
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.67
Shares Outstanding202,605,620
10 Day Avg. Volume2,430,781
30 Day Avg. Volume2,502,456
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.36
Price to Sales (P/S)0.50
P/FCF Ratio-11.28
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit1.90
Enterprise Value/Ebitda-48.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.23
Revenue Forecast (FY)$5.05B
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 f...
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 distrib...
Under Armour Key Performance Indicators (KPIs)
Any
Door Count
Indicates the number of retail locations, reflecting the company’s physical presence and potential market reach, as well as its strategy in brick-and-mortar retail.
Indicates the number of retail locations, reflecting the company’s physical presence and potential market reach, as well as its strategy in brick-and-mortar retail.
Data provided by:
The Fly
The FlyUnder Armour Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call struck a cautiously optimistic tone: management emphasized tangible progress on product quality, organizational alignment, inventory reduction, and adjusted results that beat expectations, and it modestly raised full-year adjusted operating income guidance. However, significant near-term headwinds remain — most notably footwear declines, gross margin pressure from tariffs and promotions, a large litigation reserve, restructuring charges, and a non-cash deferred tax valuation allowance. The narrative centers on stabilization and execution with the most disruptive phase of the reset claimed to be behind the company, but material one-time and structural challenges temper the near-term financial picture.Positive Updates
Operational simplification and SKU rationalization
Completed prior 25% SKU elimination from fiscal 2025 and continuing to tighten assortments/raw material complexity (identifying ~30 fabrics driving ~80% of volume), with the stated aim of higher SKU productivity, faster speed-to-market and improved margin realization.
Negative Updates
Reported operating loss and negative GAAP EPS
Reported Q3 operating loss was $150 million and reported diluted loss per share was $1.01, driven by a mix of non-recurring charges (litigation reserve, restructuring) and a $247 million non-cash valuation allowance against certain U.S. federal deferred tax assets.
Read all updates
Q3-2026 Updates
Positive
Negative
Operational simplification and SKU rationalization
Completed prior 25% SKU elimination from fiscal 2025 and continuing to tighten assortments/raw material complexity (identifying ~30 fabrics driving ~80% of volume), with the stated aim of higher SKU productivity, faster speed-to-market and improved margin realization.
Read all positive updates
Company Guidance
Under Armour updated fiscal 2026 guidance and related metrics: full‑year revenue is now expected to decline ~4% (North America ~‑8%, APAC ~‑6%, EMEA ~+9%), full‑year gross margin is expected to decline ~190 basis points, adjusted SG&A is expected to decline at a mid‑single‑digit rate, adjusted operating income is now expected at about $110 million (high end of prior $95–$110M range), and adjusted diluted EPS is expected at $0.10–$0.11 with a full‑year effective tax rate roughly in line with FY2025. For context, Q3 revenue was $1.3 billion (‑5% Y/Y), gross margin 44.4% (‑310 bps Y/Y), adjusted operating income $26 million, adjusted EPS $0.09 (reported diluted loss per share $1.01), inventory was just over $1.0 billion (‑2% Y/Y), cash was $465 million with $600 million in restricted investments, the revolver was $0 after repaying roughly $200 million, and restructuring/transformation charges to date total $224 million (≈$89M cash / $135M non‑cash) of up to $255M expected, with $35M savings realized in FY2025 and an additional ~$55M targeted in FY2026.Under Armour Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
39
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | 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
Positive
6.07
Price Trends
6.46
Negative
5.73
Positive
5.46
Positive
Market Momentum
-0.03
Negative
56.95
Neutral
78.75
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 above the 20-day moving average (MA) of 5.87, below the 50-day MA of 6.46, and above the 200-day MA of 5.46, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 78.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UA.
Under Armour Risk Analysis
Under Armour disclosed 36 risk factors in its most recent earnings report. Under Armour reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Under Armour Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.72B | 11.94 | 28.33% | 2.58% | 2.61% | 30.39% | |
70 Outperform | $3.22B | 21.02 | 10.53% | 2.18% | 0.54% | -19.72% | |
64 Neutral | $4.10B | -4.69 | 0.53% | 0.22% | 3.44% | -96.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $7.43B | 6.01 | 14.79% | 1.95% | -3.12% | ― | |
43 Neutral | $2.70B | -1.18 | -29.46% | ― | -6.20% | -322.74% |
* Consumer Cyclical Sector Average
UA
Under Armour
6.25
0.36
6.11%
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Under Armour Corporate Events
Executive/Board Changes
Under Armour Appoints Reza Taleghani as New CFO
Neutral
Feb 12, 2026
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 th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.