Under Armour Intrinsic Value Calculation – Under Armour Reports Total Revenue of USD 1317.0 Million for First Quarter of FY2024, Down 2.4% Year-on-Year
August 25, 2023
🌥️Earnings Overview
On June 30, 2023, UNDER ARMOUR ($NYSE:UAA) announced their first quarter FY2024 earnings results, indicating a total revenue of USD 1317.0 million, down 2.4% from the corresponding period of the prior year. Net income for the quarter was reported at USD 8.6 million, a year-on-year increase of 11.3%.
Analysis – Under Armour Intrinsic Value Calculation
GoodWhale has conducted a comprehensive analysis of the fundamentals of UNDER ARMOUR in order to uncover the company’s true worth. After conducting the analysis, GoodWhale has determined that the fair value of UNDER ARMOUR shares is around $16.3. This value was calculated by using GoodWhale’s proprietary Valuation Line. Currently, UNDER ARMOUR stock is being traded at $7.7, meaning that it is undervalued by 52.7%. This presents a great opportunity for investors to buy the stock at a discount and benefit from potential upside in the future. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Under Armour. More…
| Total Revenues | Net Income | Net Margin |
| 5.87k | 387.64 | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Under Armour. More…
| Operations | Investing | Financing |
| -96.38 | -146.64 | -103.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Under Armour. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.87k | 2.86k | 4.51 |
Key Ratios Snapshot
Some of the financial key ratios for Under Armour are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 6.5% | 4.6% |
| FCF Margin | ROE | ROA |
| -4.9% | 8.4% | 3.5% |
Peers
Under Armour, Inc. is an American company that manufactures footwear, sports, and casual apparel. Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour is the second-largest sportswear manufacturer in the United States. UA’s competitors include Nike, Lululemon Athletica, and Capri Holdings.
– Nike Inc ($NYSE:NKE)
Nike Inc is a publicly traded company with a market capitalization of 137.7 billion as of 2022. The company has a return on equity of 25.1%. Nike is a designer, manufacturer, and marketer of athletic footwear, apparel, equipment, and accessories. The company’s products are sold in over 190 countries worldwide. Nike has endorsement deals with some of the world’s most popular athletes, including LeBron James, Cristiano Ronaldo, and Tiger Woods.
– Lululemon Athletica Inc ($NASDAQ:LULU)
Lululemon Athletica Inc. is a Canadian athletic apparel retailer. The company was founded in 1998 by Chip Wilson and is headquartered in Vancouver, British Columbia. Lululemon Athletica Inc. designs, manufactures and markets athletic apparel and accessories for women, men and girls. The company’s product line includes pants, shorts, tops, jackets, hoodies, and accessories such as bags, socks, and headwear. Lululemon Athletica Inc. also operates a website and provides online shopping services. As of 2022, the company’s market cap is $37.96 billion and its ROE is 34.51%.
– Capri Holdings Ltd ($NYSE:CPRI)
Capri Holdings Ltd is a fashion company with a market cap of 5.96B as of 2022. The company has a Return on Equity of 25.1%. Capri Holdings Ltd is a luxury fashion company that owns and operates a portfolio of iconic fashion brands, including Michael Kors, Versace, and Jimmy Choo. The company’s brands are available in more than 100 countries through a network of company-operated stores, licensed stores, and e-commerce sites.
Summary
Under Armour‘s first quarter FY2024 results show total revenue of USD 1317.0 million, a decrease of 2.4% compared to the same period a year prior. Net income increased 11.3% year over year to USD 8.6 million. Investors should note that while revenue was down, net income increased due to cost management and operational efficiencies. With Under Armour’s focus on innovation and product development, investors should keep an eye out for new products and initiatives that can help the company enhance its bottom line performance in the coming quarters.
