Under Armour's P/S Ratio Near Its 10-Year Low

Company trades at P/S ratio of 3.66; 10-year low is 3.56

Author's Avatar
Jun 23, 2016
Article's Main Image

Under Armour Inc. (UA, Financial) is traded at P/S ratio of 3.66, close to its 10-year low of 3.56. The company is owned by eight gurus.

Under Armour has a market cap of $16.74 billion; its shares were traded around $38.32 with a P/E ratio of 64.64 and P/S ratio of 3.67. Under Armour had an annual average earnings growth of 23.50% over the past 10 years. GuruFocus rated Under Armour the business predictability rank of 5-star.

Under Armour's stock price has increased over the past five years. Its revenue has increased. The company believes this is a product of increasing sales, expansion in international markets and increased awareness of the health benefits of an active lifestyle, which led to increased demand. The company recognized some risks to business such as economic and market conditions, disruption to its suppliers and manufacturers and increased competition.

02May2017160943.png

GuruFocus has found three severe warning signs for UA:

  • Low Piotroski F-Score.
  • Sloan Ratio of 39.18%.

02May2017160943.png

  • Faster asset growth than revenue growth.

When Under Armour declared its first-quarter results, the company reported revenue of $1.05 billion, a 30% increase from last year’s $805 million. Under Armour also reported net earnings of $19 million, a 63% increase from last year’s $12 million.

Recent trades

Dodge & Cox, Ken Fisher (Trades, Portfolio), and Ron Baron (Trades, Portfolio) kept their positions in Under Armour unchanged or slightly adjusted. Steve Mandel (Trades, Portfolio) reduced his position.

Start a free seven-day trial of Premium Membership to GuruFocus.