Under Armour Inc (UAA) Stock Analysis
Verdict: AVOID
Deepening revenue contraction and lowered guidance outweigh EPS beats, signaling a brand in structural decline despite insider buying.
Investment score: 38/100
Analysis as of
Is Under Armour Inc stock worth reviewing? The TradeMates thesis
Under Armour is a brand in crisis, characterized by four consecutive years of revenue erosion and a pivot into GAAP unprofitability (Net Margin -9.98%). While the P/S ratio of 0.47x looks attractive compared to COLM (0.85x) or LEVI (1.42x), the -3.5% FCF yield and lowered 2027 guidance suggest the 'cheap' valuation is a reflection of deteriorating fundamentals rather than a market oversight. The model views the recent 17% drop as a rational repricing of a lower growth ceiling.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 85/100 (weight 10%)
- Analyst Consensus: 35/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Under Armour Inc opportunities and risks
What speaks for UAA
- Fairfax Financial Institutional Support
What speaks against UAA
- Guidance Disconnect and EPS Erosion
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| UAA | n/a | 0.5x | n/a | 47.0% | -10.0% | -3.5% |
| LEVI | 14.8x | 1.4x | 11.1x | 61.7% | 9.7% | 6.1% |
| VFC | 21.2x | 0.6x | 12.5x | 54.6% | 2.9% | 10.0% |
| KTB | 15.5x | 1.4x | 12.4x | 47.8% | 8.8% | 9.4% |
| PVH | 26.1x | 0.4x | 7.9x | 57.5% | 1.8% | 13.7% |
| COLM | 14.7x | 0.9x | 8.6x | 52.0% | 6.0% | 11.0% |
| Peer median | 15.5x | 0.9x | 11.1x | 54.6% | 6.0% | 10.0% |
Frequently asked questions about Under Armour Inc (UAA)
Is UAA stock a good investment?
The TradeMates model rates Under Armour Inc as AVOID with an investment score of 38/100. Under Armour is a brand in crisis, characterized by four consecutive years of revenue erosion and a pivot into GAAP unprofitability (Net Margin -9.98%). While the P/S ratio of 0.47x looks attractive compared to COLM (0.85x) or LEVI (1.42x), the -3.5% FCF yield and lowered 2027 guidance suggest the 'cheap' valuation is a reflection of deteriorating fundamentals rather than a market oversight. The model views the recent 17% drop as a rational repricing of a lower growth ceiling. This is algorithmic model output, not personal investment advice.
Is UAA stock a buy?
The TradeMates model verdict for UAA is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.