Under Armour (UAA) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 15.38M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.00
• Revenue Growth: -8.02%
• EPS Growth: N/A
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.02
• Shares Outstanding: 188,834,380
• 10 Day Avg. Volume: 13,147,508
• 30 Day Avg. Volume: 15,377,156
• 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: 1.65
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 11.19
• 1Y Price Target: $5.87
• Price Target Upside: 14.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 46 Neutral
• Price Target: $5.00 ▼(-2.72% Downside)

Under Armour's overall stock score reflects significant financial and technical challenges. The company's strong gross margin is overshadowed by weak profitability and cash flow issues. Technical indicators point to bearish momentum, and valuation metrics are moderate. The absence of a dividend yield further limits appeal.

Positive Factors

Brand Positioning

The Under Armour brand is slowly becoming better positioned in the marketplace, and the company's increasing focus on better and best product is beginning to show some success, albeit on a small scale.

Market Performance

EMEA was an area of strength; 1Q sales increased 10% y/y and 2Q sales are expected to increase in high single digits.

Negative Factors

Profitability Challenges

Management expects adjusted operating income for the full year to be roughly half of the previous year's base, due to softer-than-expected demand and additional tariff-related costs.

Revenue Decline

Under Armour is expected to face a low-double-digit revenue decline in North America, driven by orderbook challenges and a highly promotional market.

Tariffs Impact

Management noted that tariffs will have approximately $100 million net impact on gross margin this year.

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 several key streams, primarily from the sale of its performance apparel, footwear, and accessories both through direct-to-consumer channels and wholesale distribution. The company sells products via its own retail stores, e-commerce platform, and through partnerships with various sporting goods retailers and specialty stores. Additionally, Under Armour has established collaborations with professional athletes and teams, enhancing its brand visibility and credibility in the sports community. The company also benefits from licensing agreements that allow it to generate income from its brand through third-party products. Seasonal product launches and marketing campaigns aimed at athletes and fitness enthusiasts play a significant role in driving sales and expanding its market reach.

Under Armour Financial Statement Overview

Summary

Under Armour's financial performance is mixed. The company has a strong gross profit margin of 48.07%, but faces challenges with a low net profit margin of 1.99% and declining revenue. The balance sheet is stable with manageable leverage, but cash flow issues are significant, indicating potential liquidity concerns.

Income Statement

Under Armour's income statement shows mixed results. The TTM data indicates a gross profit margin of 48.07%, which is relatively strong, but the net profit margin is low at 1.99%, indicating challenges in converting revenue into profit. Revenue has declined by 0.96% in the TTM period, reflecting potential market challenges or competitive pressures. The EBIT margin is modest at 3.83%, and EBITDA margin is 6.41%, suggesting moderate operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.89, indicating manageable leverage. However, the return on equity is low at 5.25%, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 38.54%, indicating a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is high at 1.97, indicating cash flow issues despite reported net income. The operating cash flow to net income ratio is negative, highlighting potential liquidity concerns.

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	2.46B	2.47B	2.63B	2.64B	2.86B	2.16B
EBITDA	327.72M	8.56M	372.34M	399.04M	667.95M	153.15M
Net Income	101.55M	-201.27M	232.04M	374.46M	360.06M	-549.18M
Balance Sheet
Total Assets	4.87B	4.30B	4.76B	4.86B	4.99B	5.03B
Cash, Cash Equivalents and Short-Term Investments	910.99M	501.36M	858.69M	711.91M	1.67B	1.52B
Total Debt	1.68B	1.30B	1.44B	1.52B	1.50B	2.01B
Total Liabilities	2.99B	2.41B	2.61B	2.86B	2.90B	3.35B
Stockholders Equity	1.87B	1.89B	2.15B	2.00B	2.09B	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: 5.14
• 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 UAA, the sentiment is Neutral. The current price of 5.14 is above the 20-day moving average (MA) of 5.10, below the 50-day MA of 6.20, and below the 200-day MA of 7.05, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UAA.

Under Armour Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTB	71 Outperform	$4.46B	17.89	58.07%	2.57%	3.47%	5.86%
ZGN	70 Outperform	$3.57B	26.30	10.74%	1.56%	0.29%	-3.61%
COLM	67 Neutral	$3.15B	14.42	12.93%	2.12%	0.81%	4.86%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
VFC	55 Neutral	$5.85B	68.92	7.83%	2.40%	-7.41%	―
HBI	55 Neutral	$2.25B	14.41	154.00%	―	-27.88%	―
UAA	46 Neutral	$2.22B	22.29	5.50%	―	-8.02%	―