Under Armour Inc (UAA, Financial) has recently experienced a notable uptick in its stock performance, with a 6.46% gain over the past week and an impressive 27.43% gain over the past three months. The company's market capitalization stands at $3.87 billion, with a current stock price of $9.06. According to GuruFocus's valuation metrics, Under Armour is currently modestly undervalued with a GF Value of $12.53, compared to a past GF Value of $16.41. This indicates a shift from being significantly undervalued three months ago to its current valuation status.
Introduction to Under Armour Inc
Under Armour Inc, a key player in the Manufacturing - Apparel & Accessories industry, has carved out a niche for itself by developing, marketing, and distributing athletic apparel, footwear, and accessories. The company's target market includes professional and amateur athletes, as well as individuals leading active lifestyles. Under Armour's multi-channel distribution strategy encompasses direct-to-consumer platforms, including e-commerce and numerous factory and brand house stores, alongside wholesale channels. Additionally, the company has expanded its digital footprint with the MapMyFitness app. Founded in 1996 and headquartered in Baltimore, Under Armour has established a significant market presence across North America, Asia-Pacific, Europe, and other regions.
Assessing Under Armour's Profitability
Under Armour's Profitability Rank stands at 5/10, reflecting a moderate level of profitability within the industry. The company's operating margin is 5.06%, which is higher than 56.48% of its industry peers. Its return on equity (ROE) is an impressive 21.06%, surpassing 89.01% of competitors, while the return on assets (ROA) at 8.52% and return on invested capital (ROIC) at 12.75% are also strong, better than 85.71% and 84.69% of industry peers, respectively. Over the past decade, Under Armour has maintained profitability for 6 years, which is better than 37.89% of companies in the industry.
Growth Trajectory of Under Armour
Under Armour's growth metrics are equally compelling. The company's 3-year revenue growth rate per share stands at 9.10%, outperforming 67.56% of its industry peers. Looking ahead, the estimated future 3 to 5-year EPS without NRI growth rate is 8.40%, which is better than 15.79% of industry peers. These figures suggest that Under Armour is on a positive trajectory when it comes to expanding its business and increasing shareholder value.
Key Shareholders in Under Armour
Notable investors have taken significant positions in Under Armour, demonstrating confidence in the company's prospects. Steven Cohen (Trades, Portfolio) leads the pack with 1,526,400 shares, representing a 0.35% share percentage. Following him is Paul Tudor Jones (Trades, Portfolio), holding 311,939 shares, or 0.07% of the company, and Caxton Associates (Trades, Portfolio) with 150,013 shares, equating to a 0.03% share percentage. The involvement of these prominent investors underscores a level of confidence in Under Armour's market strategy and future growth.
Competitive Landscape
When compared to its competitors, Under Armour holds its own in the market. Kontoor Brands Inc (KTB, Financial) has a market cap of $3.33 billion, Ermenegildo Zegna NV (ZGN, Financial) is valued at $2.9 billion, and Columbia Sportswear Co (COLM, Financial) stands at $4.94 billion. These companies represent the competitive environment in which Under Armour operates, and its recent stock performance suggests that it is maintaining a competitive edge within this group.
Conclusion
In summary, Under Armour Inc's recent stock price surge can be attributed to its solid profitability metrics, promising growth prospects, and the confidence shown by significant shareholders. The company's current valuation indicates that it is modestly undervalued, presenting a potential opportunity for investors. With a robust business model and a strategic approach to market expansion, Under Armour is well-positioned to continue its upward trajectory in the competitive apparel and accessories industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
