Under Armour Inc

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UA : NYSE : Consumer Goods
$38.68 up 0.08 | 0.21%
Today's Range: 38.57 - 39.02
Avg. Daily Volume: 4,201,800
09/30/16 - 4:01 PM ET

Financial Analysis


UNDER ARMOUR INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged 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 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.13% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1000.78783.58
EBITDA ($mil)78.0956.66
EBIT ($mil)42.3831.9
Net Income ($mil)6.3414.77


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)121.22171.24
Total Assets ($mil)3426.922763.61
Total Debt ($mil)1015.12715.74
Equity ($mil)1771.351415.58


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin51.351.53
EBITDA Margin7.87.23
Operating Margin4.234.07
Sales Turnover1.291.24
Return on Assets6.757.35
Return on Equity13.0714.36
Debt Q2 FY16 Q2 FY15
Current Ratio2.612.63
Debt/Capital0.360.34
Interest Expense5.754.26
Interest Coverage7.377.49


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)437.29215.66
Div / share0.00.0
EPS-0.120.07
Book value / share4.056.56
Institutional Own % n/a n/a
Avg Daily Volume4389838.06466712.0

Valuation


HOLD. UNDER ARMOUR INC's P/E ratio indicates a significant premium compared to an average of 26.32 for the Textiles, Apparel & Luxury Goods industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 9.85 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 6.04. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, UNDER ARMOUR INC proves to trade at a premium 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 44.83 Peers 26.32   UA 137.58 Peers 35.28

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

UA is trading at a significant premium to its peers.

 

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

UA is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UA 25.66 Peers 22.29   UA 4.32 Peers 2.60

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.

 

Premium. 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.

UA trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UA 9.85 Peers 6.04   UA -4.31 Peers 7.86

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

UA is trading at a significant premium 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 3.94 Peers 2.54   UA 29.27 Peers 7.94

Premium. 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 premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

UA has a sales growth rate that significantly exceeds its peers.

 

 

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