Under Armour Stock Fair Value Calculation – Under Armour Reports Impressive Second Quarter Earnings for 2024 Fiscal Year
November 20, 2023
☀️Earnings Overview
On September 30th 2023, UNDER ARMOUR ($NYSE:UAA) revealed their earnings report for Q2 of fiscal year 2024. Total revenue for the quarter was USD 1566.7 million, a slight decrease of 0.5% compared to the year prior. Net income, however, saw an increase of 26.1% compared to the same period in the preceding year, reaching USD 109.6 million.
Stock Price
On Wednesday, Under Armour reported impressive second quarter earnings for the 2024 fiscal year. The stock opened at $7.1 and closed at $7.4, a 2.9% increase from the prior closing price of $7.2. Under Armour’s strong second quarter earnings are further evidence of the company’s ability to successfully navigate a changing retail landscape. With continued innovation and strategic partnerships, the company is well-positioned for continued success and growth in the upcoming quarters. Live Quote…
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 |
| 5.86k | 410.32 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Under Armour. More…
| Operations | Investing | Financing |
| 56.83 | -133.08 | -128.12 |
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 |
| 4.75k | 2.66k | 4.77 |
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 |
| 2.5% | -14.7% | 5.1% |
| FCF Margin | ROE | ROA |
| -2.1% | 9.1% | 3.9% |
Analysis – Under Armour Stock Fair Value Calculation
At GoodWhale, we provide comprehensive fundamental analysis of Under Armour. Our in-house metrics, such as the Valuation Line help us to accurately assess the fair value of Under Armour’s stock. The fair value of Under Armour share is around $16.4, which is calculated by our proprietary Valuation Line. Currently, Under Armour stock is traded at $7.4, meaning it is undervalued by 54.8%. We believe that this provides an excellent opportunity for investors to buy into the company. More…
Peers
Under Armour, Inc. is an American company that manufactures footwear, sports, and casual apparel. Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour is the second-largest sportswear manufacturer in the United States. UA’s competitors include Nike, Lululemon Athletica, and Capri Holdings.
– Nike Inc ($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
Investors are encouraged by the Under Armour‘s Q2 2024 earnings report as net income increased 26.1% year over year to USD 109.6 million. Total revenue decreased slightly by 0.5% but still remained solid at USD 1566.7 million. The company’s strategies and efforts to expand their product offerings and focus on global markets have helped the company to maintain its positive performance. As Under Armour continues to increase global market presence and introduce new products, investors should remain cautiously optimistic about the company’s potential for the future.
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