Under Armour Is Undervalued, UBS Says

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Under Armour Stock Fair Value – Under Armour ($NYSE:UAA) is a leading athletic apparel company with a strong global brand.

However, its stock is currently undervalued, according to UBS. The firm notes that UA’s Evidence Lab’s 2022 Global Athletic Survey showed the company is the 4th most top-of-mind athletic apparel brand in the world and has the 5th highest Net Promoter Score among its main athletic wear peers. “Despite these solid characteristics, the stock’s current market cap is just $2.9B, or 1.2x our 2022 revenue estimate,” UBS said. UBS defended its Buy rating on Under Armour, with a strong contention that the market is not factoring in the power of the UA brand. The firm noted that its Evidence Lab’s 2022 Global Athletic Survey showed Under Armour is the 4th most top-of-mind athletic apparel brand in the world and has the 5th highest Net Promoter Score among its main athletic wear peers. “Despite these solid characteristics, the stock’s current market cap is just $2.9B, or 1.2x our 2022 revenue estimate,” UBS said. The firm is confident that UA can continue to grow its top and bottom line, driven by strong global brand awareness and expanding product categories. “We see room for multiple expansion as the company improves its mix of direct-to-consumer sales , expands internationally and enters new categories,” UBS said.

Earnings

UBS has released a report stating that they believe Under Armour is currently undervalued. In its most recent earning report for FY2022 Q1, Under Armour earned a total revenue of 5727.2M USD and a net income of 222.7M USD. While this is a 0.8% increase in total revenue from the previous year, it represents a 38.2% decrease in net income. UBS attributes this growth to the company’s strong focus on digital marketing and e-commerce, which has allowed them to reach a wider audience and drive sales.

Price History

Analysts at UBS believe that shares of Under Armour are currently undervalued. The company has been facing some challenges lately, but the overall sentiment among media and analysts has been positive. On Monday, UA stock opened at $6.8 and closed at $7.2, a 5.1% increase from its last closing price of $6.8.

VI Analysis – Under Armour Stock Fair Value Calculator

Under Armour is a company that designs, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth. Under Armour’s intrinsic value, as calculated by the VI Line app, is around $17.4 per share. The company’s stock is currently trading at $7.2, which means it is undervalued by 59%.

VI 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

There are a few reasons why investing in Under Armour could be a good idea.

First, the company is undervalued, according to UBS. This means that there is potential for the stock price to go up in the future. Second, media sentiment has been mostly positive, which suggests that the company is doing well. Finally, the stock price has been moving up recently, which could mean that investors are starting to see potential in the company.