Under Armour, Inc. [UAA] is following upward trend in the market concluded with the last trading session. The shares of the Consumer Goods sector company has a current value of $26.60 after UAA shares went up by 2.39% during the last trading session. One of the reasons why Consumer Goods stocks may go bullish is increased momentum in the press.
Under Armour, Inc. [NYSE:UAA]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Under Armour, Inc. [UAA] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give UAA an Hold rating. Its stock price has been found in the range of 16.52 to 26.44. This is compared to its latest closing price of $25.98.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Under Armour, Inc. [UAA] is sitting at 2.87. This is compared to 1 month ago, when its average rating was 2.87.
For the quarter ending in Mar-19 Under Armour, Inc. [UAA] generated $1.2 billion in sales. That’s 2.01% higher than the average estimate of $1.18 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 25 Jul (In 41 Days).
Fundamental Analysis of Under Armour, Inc. [UAA]
Now let’s turn to look at profitability: with a current Operating Margin for Under Armour, Inc. [UAA] sitting at +3.07 and its Gross Margin at +44.98, this company’s Net Margin is now 0.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.61, and its Return on Invested Capital has reached 1.20%. Its Return on Equity is -2.29, and its Return on Assets is -1.12. These metrics suggest that this Under Armour, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Under Armour, Inc. [UAA] has generated a Total Debt to Total Equity ratio of 36.14. Similarly, its Total Debt to Total Capital is 26.54, while its Total Debt to Total Assets stands at 17.17. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 34.90, and its Long-Term Debt to Total Capital is 25.63. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 34.71 and its Total Debt to EBITDA Value is 2.14. The Enterprise Value to Sales for this firm is now 2.27, and its Total Debt to Enterprise Value stands at 0.09. Under Armour, Inc. [UAA] has a Price to Book Ratio of 3.93, a Price to Cash Flow Ratio of 12.54 and P/E Ratio of 1,683.54. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Under Armour, Inc. [UAA] earns $346,212 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.14 and its Total Asset Turnover is 1.26. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.20 and its Current Ratio is 1.97. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Under Armour, Inc. [UAA] has 419.39M shares outstanding, amounting to a total market cap of $11.16B. Its stock price has been found in the range of 16.52 to 26.44. At its current price, it has moved up by 0.61% from its 52-week high, and it has moved up 61.02% from its 52-week low.
This stock’s Beta value is currently 0.44, which indicates that it is 1.88% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 71.87. This RSI suggests that Under Armour, Inc. is currently Overbought.
Conclusion: Is Under Armour, Inc. [UAA] a Reliable Buy?
Under Armour, Inc. [UAA] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.