Under Armour (UA) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: N/A
• Average Volume (3M): 5.09M
• 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): 0.04
• Shares Outstanding: 200,604,980
• 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: 1.90
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 6.41
• 1Y Price Target: $7.50
• Price Target Upside: 81.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $4.00 ▼(-3.38% Downside)

Under Armour's overall stock score reflects moderate financial health but is weighed down by weak technical indicators and valuation metrics. The earnings call provides some optimism with strategic initiatives and leadership changes, but significant challenges remain, particularly in profitability and cash flow management.

Positive Factors

Product Innovation

Streamlining product lines and focusing on innovative materials like NEOLAST can enhance product appeal and pricing power, supporting long-term growth.

Leadership Change

The appointment of a seasoned CFO can provide strategic financial oversight, potentially improving financial performance and supporting growth initiatives.

EMEA Revenue Growth

Strong revenue growth in EMEA indicates successful market penetration and brand strength, which can offset challenges in other regions.

Negative Factors

North America Revenue Decline

Declining revenue in North America, a key market, suggests challenges in consumer demand and competitive pressures, impacting overall growth.

Gross Margin Decline

A decline in gross margin due to tariffs and supply chain issues can pressure profitability, requiring strategic cost management to sustain margins.

Cash Flow Constraints

Significant cash flow constraints limit financial flexibility, potentially hindering investment in growth initiatives and operational resilience.

Under Armour Business Overview & Revenue Model

Company Description

Under Armour (UA) is an American sportswear and apparel company founded in 1996, headquartered in Baltimore, Maryland. The company specializes in performance apparel, footwear, and accessories designed for athletes and fitness enthusiasts. Under Armour operates primarily in the athletic apparel sector, focusing on innovative technology and design to enhance athletic performance. Its product offerings include moisture-wicking clothing, shoes, and various sports equipment, catering to a wide range of sports and fitness activities.

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 demonstrates moderate financial health with stable revenue growth and manageable leverage. However, profitability and cash flow management present challenges, requiring strategic improvements to enhance financial performance.

Income Statement

Under Armour's income statement shows a moderate performance with a gross profit margin of 48.07% TTM, indicating efficient cost management. However, the net profit margin is relatively low at 1.99% TTM, suggesting limited profitability. Revenue growth is positive at 2.78% TTM, but historical fluctuations indicate instability. The EBIT and EBITDA margins are modest, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.89 TTM, indicating manageable leverage. The return on equity is low at 5.25% TTM, reflecting limited profitability on shareholder investments. The equity ratio is not provided, but the overall leverage appears controlled.

Cash Flow

Cash flow analysis shows challenges with a negative free cash flow growth rate of -86.04% TTM, indicating cash flow constraints. The operating cash flow to net income ratio is negative, suggesting inefficiencies in cash generation. The free cash flow to net income ratio is positive, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.53B	5.16B	5.70B	5.90B	5.68B	4.47B
Gross Profit	2.69B	2.47B	2.63B	2.64B	2.86B	2.16B
EBITDA	557.39M	8.56M	372.34M	399.04M	667.95M	321.30M
Net Income	323.18M	-201.27M	232.04M	374.46M	360.06M	-541.93M
Balance Sheet
Total Assets	4.90B	4.30B	4.76B	4.83B	4.45B	5.03B
Cash, Cash Equivalents and Short-Term Investments	395.99M	501.36M	858.69M	710.93M	1.01B	1.52B
Total Debt	1.90B	1.30B	1.44B	1.52B	1.48B	2.01B
Total Liabilities	3.04B	2.41B	2.61B	2.86B	2.72B	3.35B
Stockholders Equity	1.86B	1.89B	2.15B	1.97B	1.73B	1.68B
Cash Flow
Free Cash Flow	-44.92M	-228.00M	203.64M	-197.71M	595.07M	120.57M
Operating Cash Flow	88.11M	-59.32M	353.97M	-9.91M	664.83M	212.86M
Investing Cash Flow	-740.64M	-126.35M	-105.33M	-152.80M	-68.35M	66.34M
Financing Cash Flow	509.05M	-180.81M	-78.69M	-126.38M	-418.74M	436.85M

Under Armour Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.14
• 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 4.14 is below the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.38, and below the 200-day MA of 5.41, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 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
LEVI	75 Outperform	$8.48B	18.74	25.99%	2.54%	3.20%	200.49%
COLM	69 Neutral	$2.98B	16.61	10.84%	2.17%	2.76%	-7.83%
PVH	66 Neutral	$3.23B	10.59	6.70%	0.21%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.28B	82.24	6.39%	1.93%	-4.56%	―
UA	52 Neutral	$1.88B	-21.43	-4.56%	―	-6.35%	-565.47%
HBI	49 Neutral	―	―	140.06%	―	-19.47%	―

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.