Under Armour, Inc. (NYSE: UAA)

Sector: Consumer Cyclical Industry: Apparel Manufacturing CIK: 0001336917
Market Cap 2.07 Bn
P/B 1.12
P/E -23.67
P/S 0.41
ROIC (Qtr) 2.76
Div Yield % 0.00
Rev 1y % (Qtr) -4.69
Total Debt (Qtr) 1.90 Bn
Debt/Equity (Qtr) 1.02

About

Under Armour, Inc., commonly known by its stock symbol UAA, is a prominent player in the global athletic apparel and footwear industry. Since its inception in 1996, the company has been dedicated to developing, marketing, and distributing branded performance apparel, footwear, and accessories for men, women, and youth. Under Armour's operations span various geographical segments, including North America, Europe, Middle East, and Africa (EMEA), Asia-Pacific, and Latin America. Under Armour's revenue is generated from the sale of its products across...

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Price action

Investment thesis

Bull case

  • Strong free cash flow of (44.92M) provides 7.04x coverage of acquisition spending (6.38M), indicating disciplined M&A strategy.
  • Robust tangible asset base of 4.40B provides 3.65x coverage of working capital 1.21B, indicating strong operational backing.
  • Cash reserves of 395.99M provide solid 2.76x coverage of other non-current liabilities 143.71M, indicating strong liquidity.
  • Tangible assets of 4.40B provide robust 8.30x coverage of other current liabilities 530M, indicating strong asset backing.
  • Short-term investments of 604.07M provide healthy 0.50x coverage of working capital 1.21B, indicating strong liquidity.

Bear case

  • Operating cash flow of 88.11M barely covers its investment activities of (740.64M), with a coverage ratio of -0.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 395.99M provide limited coverage of acquisition spending of (6.38M), which is -62.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 88.11M shows concerning coverage of stock compensation expenses of 49.52M, with a 1.78 ratio indicating potential earnings quality issues.
  • Free cash flow of (44.92M) provides weak coverage of capital expenditures of 133.03M, with a -0.34 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (50.90M) show weak coverage of depreciation charges of 126.48M, with a -0.40 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Apparel Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RL Ralph Lauren Corp 21.81 Bn 25.53 2.88 2.85 Bn
2 GIL Gildan Activewear Inc. 9.45 Bn 19.89 2.81 1.87 Bn
3 LEVI Levi Strauss & Co 8.22 Bn 13.64 1.29 2.29 Bn
4 VFC V F Corp 7.10 Bn 78.61 0.74 5.79 Bn
5 KTB Kontoor Brands, Inc. 3.40 Bn 15.62 1.20 1.50 Bn
6 PVH Pvh Corp. /De/ 3.39 Bn 9.96 0.38 4.26 Bn
7 COLM Columbia Sportswear Co 3.12 Bn 16.69 0.91 0.48 Bn
8 ZGN Ermenegildo Zegna N.V. 2.55 Bn 43.66 1.13 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 1.01
EV to Cash from Ops. EV/CFO 32.22 8.80
EV to Debt EV to Debt 1.49 4.30
EV to EBIT EV/EBIT -55.78 -5.31
EV to EBITDA EV/EBITDA 32.16 -69.89
EV to Free Cash Flow [EV/FCF] EV/FCF -63.20 15.55
EV to Market Cap EV to Market Cap 1.37 1.81
EV to Revenue EV/Rev 0.56 1.14
Price to Book Value [P/B] P/B 1.12 1.78
Price to Earnings [P/E] P/E -23.67 14.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -3.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.51
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 20.82
Interest Coverage Int. cover (Qtr) -2.63 26.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.08 -10.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.38 10.71
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -207.78 -88.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.89 11.99
EBIT Growth (1y) % EBIT 1y % (Qtr) -150.35 -49.71
EBT Growth (1y) % EBT 1y % (Qtr) -302.28 -181.63
EPS Growth (1y) % EPS 1y % (Qtr) -425.00 -218.58
FCF Growth (1y) % FCF 1y % (Qtr) -23.49 -29.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.38 6.94
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.03 1.16
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.15
Cash Ratio Cash Ratio (Qtr) 0.23 0.28
Current Ratio Curr Ratio (Qtr) 1.70 1.99
Debt to Equity Ratio Debt/Equity (Qtr) 1.02 -1.63
Interest Cover Ratio Int Coverage (Qtr) -2.63 26.98
Times Interest Earned Times Interest Earned (Qtr) -2.63 26.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.50 -6.73
EBIT Margin % EBIT Margin % (Qtr) -1.01 -10.67
EBT Margin % EBT Margin % (Qtr) -1.39 -17.44
Gross Margin % Gross Margin % (Qtr) 47.40 49.34
Net Profit Margin % Net Margin % (Qtr) -1.70 -18.93