Under Armour, Inc. (UAA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Steven Madden Ltd.

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Columbia Sportswear Co.

Crocs, Inc.

PVH Corp.

Oxford Industries, Inc.

Under Armour, Inc.

Ermenegildo Zegna NV

Why is Under Armour, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.57% and Operating profit at 52.69% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD -171.27 MM
CASH AND EQV(HY) Lowest at USD 1,440.21 MM
DEBT-EQUITY RATIO (HY) Highest at 40.04 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -57.09%, its profits have fallen by -45.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -57.09% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Under Armour, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Under Armour, Inc.

-1.78%

-0.70

50.31%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.08%

EBIT Growth (5y)

43.14%

EBIT to Interest (avg)

31.55

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.92

Tax Ratio

1.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.23%

ROE (avg)

12.20%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.69

EV to EBIT

10.18

EV to EBITDA

6.78

EV to Capital Employed

1.66

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

16.31%

ROE (Latest)

-7.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.93 times

PRE-TAX PROFIT(Q)

At USD -7.82 MM has Grown at 85.32%

NET PROFIT(Q)

At USD -8.71 MM has Grown at 78.54%

-24What is not working for the Company

NET PROFIT(HY)

At USD -367.28 MM has Grown at -1,043.72%

INTEREST(HY)

At USD 17.61 MM has Grown at 163.13%

OPERATING CASH FLOW(Y)

Lowest at USD -75.08 MM

ROCE(HY)

Lowest at -30%

DEBT-EQUITY RATIO (HY)

Highest at 72.27 %

RAW MATERIAL COST(Y)

Grown by 15.15% (YoY

Here's what is working for Under Armour, Inc.

Pre-Tax Profit

At USD -7.82 MM has Grown at 85.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -8.71 MM has Grown at 78.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Inventory Turnover Ratio

Highest at 2.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Under Armour, Inc.

Interest

At USD 17.61 MM has Grown at 163.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -75.08 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 72.27 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 15.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales