Company Overview
Under Armour, Inc. operates as a prominent player in the Consumer Cyclical sector, specifically within the Apparel Manufacturing industry, where it focuses on developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company offers a diverse range of apparel types including compression, fitted, and loose fit styles, alongside specialized footwear products designed for activities such as running. As of the latest data, the company commands a market capitalization of $2.49B and generates annual revenue of $4.98B, supported by a workforce of 6,500 employees. These valuation and revenue figures indicate that Under Armour maintains a significant, albeit mid-cap, position in the athletic wear market, suggesting a scale that allows for substantial distribution reach while reflecting the volatility often associated with consumer discretionary spending.
Financial Health
The company reported a revenue of $4.98B over the trailing twelve months, yet this top-line activity resulted in a net income of $-519,710,016 and an EBITDA of $96.72M. The substantial gap between the $4.98B in revenue and the negative net income reveals a cost structure where operating expenses significantly erode profitability, despite the generation of positive operating cash earnings before interest, taxes, depreciation, and amortization. Free cash flow stands at $-385,754,240, which indicates that the company is currently consuming cash rather than generating it, thereby limiting its immediate financial flexibility for organic expansion or large-scale acquisitions without external capital injections. Margin analysis shows a gross margin of 46.6%, which suggests strong pricing power or efficient production costs at the wholesale level, though this is offset by an operating margin of -5.4% and a profit margin of -10.4%, highlighting significant overhead burdens. On the balance sheet, the company holds $464.65M in cash against total debt of $1.69B, resulting in a debt-to-equity ratio of 117.66, which characterizes the financial structure as highly leveraged rather than conservative. Liquidity is assessed via a current ratio of 1.43, indicating that the company possesses sufficient current assets to cover its short-term liabilities, though not by a wide safety margin. Return on equity is -30.4% and return on assets is -0.3%, metrics that reveal management is currently unable to generate positive returns on the capital invested in the business, reflecting the impact of the net loss on the equity base and total asset utilization.
Valuation Assessment
Valuation metrics for Under Armour show a trailing P/E ratio of N/A due to the negative net income, while the forward P/E is 25.62, implying that the market is pricing in expected earnings recovery that does not yet exist in current periods. The price-to-book ratio stands at 1.74, suggesting that the market values the company at a premium of 74% over its tangible book value, a divergence often seen in growth-oriented or turnaround retail stocks. Alternative valuation measures include a price-to-sales ratio of 0.50 and an EV/EBITDA of 38.41, which suggest the stock is trading at a multiple of sales that is relatively low for a branded apparel firm but at a high multiple of earnings before interest, taxes, depreciation, and amortization relative to its current profitability. The stock has traded between a 52-week high of $8.15 and a 52-week low of $4.13, and without the current specific share price, the valuation relative to this specific range cannot be calculated precisely from the provided text alone, but the wide range indicates significant price volatility. The beta value of 1.77 signifies that the stock is expected to be substantially more volatile than the broader market, moving approximately 77% more than the market index in response to general market movements.
Growth & Income
Revenue growth over the past year is -5.2%, while earnings growth is listed as N/A due to the absence of positive net income in the current period. Since earnings are negative, a direct comparison of growth rates is not mathematically feasible, but the decline in revenue combined with negative earnings suggests a contraction in both top-line sales and bottom-line profitability. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, indicating that it reinvests any available resources or retains earnings rather than distributing them to shareholders. The overall growth and income profile is defined by negative revenue momentum, high leverage, and a complete absence of dividend income, positioning the stock purely as a speculative play on potential future earnings normalization rather than a source of current yield or stable growth.