Under Armour Inc.

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UA : NYSE : Consumer Non-Durables
$15.3 up 0.33 | 2.2%
Today's Range: 14.94 - 15.41
Avg. Daily Volume: 5270000.0
02/23/18 - 4:00 PM ET

Financial Analysis


UNDER ARMOUR INC's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. UNDER ARMOUR INC has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1365.361305.28
EBITDA ($mil)0.0195.79
EBIT ($mil)0.34156.4
Net Income ($mil)-87.92103.23


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)312.48250.47
Total Assets ($mil)4006.373644.33
Total Debt ($mil)917.05817.39
Equity ($mil)2018.642030.9


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin43.347.74
EBITDA Margin0.014.99
Operating Margin0.0311.98
Sales Turnover1.241.32
Return on Assets-1.27.05
Return on Equity-2.3912.65
Debt Q4 FY17 Q4 FY16
Current Ratio2.22.87
Debt/Capital0.310.29
Interest Expense9.37.96
Interest Coverage0.0419.65


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)441.63438.44
Div / share0.00.0
EPS-0.20.23
Book value / share4.574.63
Institutional Own % n/a n/a
Avg Daily Volume5673909.05139969.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 3.62 indicates a premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 7.56. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, UNDER ARMOUR INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UA NM Peers 36.02   UA NA Peers 22.48

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

UA's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UA 25.06 Peers 26.85   UA NA Peers 2.34

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

UA is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UA 3.62 Peers 7.56   UA -125.03 Peers 10.06

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

UA is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, UA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UA 1.47 Peers 2.58   UA 3.13 Peers 5.08

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

UA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UA significantly trails its peers on the basis of sales growth

 

 

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