Under Armour, Inc. (UA) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Under Armour's price-to-book of 1.50 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 1.32.

Trading below fair value

The share price of $4.99 is below our fair value estimate of $5.67.

Margin of safety under 20%

The price is 12.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -4.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -3.6% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 0.8%.

Guidance lowered

Under Armour lowered its fiscal 2027 Diluted Loss Per Share outlook on Aug 7, 2026.

Gross margin slipping

Gross margin was 46.8% over the last twelve months, against 48.1% a year earlier.

Return on equity under 15%

Return on equity was -29.8% over the last twelve months and averaged -7.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -5.3%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Under Armour's return on equity of -29.8% is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 8.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -10.0% over the last twelve months, against a 5-year average of -3.2%.

Net margin below the industry

Under Armour's net margin of -10.0% is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 2.8%.

High debt

Debt is 41.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 27.6% five years ago to 41.4%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -2.5% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense -1.9 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.81 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.97; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Under Armour has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.