February 28, 2016
NYSE: UA
UNDER ARMOUR INC
BUY
A+
A
A-
HOLD
B+
B
Annual Dividend Rate
NA
B-
C+
C
Annual Dividend Yield
NA
SELL
C-
D+
D
Beta
0.68
Sector: Consumer Goods & Svcs
UA BUSINESS DESCRIPTION
Under Armour, Inc. together with its subsidiaries,
develops, markets, and distributes branded
performance apparel, footwear, and accessories
for men, women, and youth primarily in North
America, Europe, the Middle East, Africa, the
Asia-Pacific, and Latin America.
Weekly Price: (US$)
D-
E+
E
E-
F
Market Capitalization
$15.1 Billion
HOLD
52-Week Range
$63.23-$105.89
SMA (100)
01/11/2016
Price as of 2/25/2016
$83.06
Sub-Industry: Apparel, Accessories & Luxury Goods
SMA (50)
RATING SINCE
Source: S&P
1 Year
2 Years
110
100
90
80
70
STOCK PERFORMANCE (%)
3 Mo.
Price Change
-9.82
1 Yr.
8.64
3 Yr (Ann)
52.66
60
50
GROWTH (%)
Last Qtr
30.77
20.40
20.00
Revenues
Net Income
EPS
12 Mo.
28.49
11.79
10.52
3 Yr CAGR
29.26
21.78
20.17
40
Rating History
BUY
Volume in Millions
75
RETURN ON EQUITY (%)
UA
13.94
15.40
15.41
Q4 2015
Q4 2014
Q4 2013
Ind Avg
21.97
20.75
21.48
S&P 500
12.28
14.59
13.97
79.10
29.67
21.53
UA
Ind Avg
S&P 500
2015
0
2016
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
2014
Q4 0.48
Q2 0.07
Q3 0.45
Q1 0.05
Q4 0.40
Q2 0.08
UNDER ARMOUR INC has improved earnings per share by 20.0% in the most recent quarter compared to the
same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth
over the past two years. We feel that this trend should continue. This trend suggests that the performance of
the business is improving. During the past fiscal year, UNDER ARMOUR INC increased its bottom line by
earning $1.05 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.30
versus $1.05).
Q3 0.41
Q1 0.06
Q4 0.30
Q3 0.34
Q2 0.08
2014
HIGHLIGHTS
The revenue growth came in higher than the industry average of 16.8%. Since the same quarter one year
prior, revenues rose by 30.8%. This growth in revenue appears to have trickled down to the company's bottom
line, improving the earnings per share.
EPS ANALYSIS¹ ($)
Q1 0.04
25
RECOMMENDATION
We rate UNDER ARMOUR INC (UA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks. The company's strengths can
be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in
net income. However, as a counter to these strengths, we also find weaknesses including premium valuation,
weak operating cash flow and disappointing return on equity.
P/E COMPARISON
2013
50
2015
NA = not available NM = not meaningful
1 Compustat fiscal year convention is used for all fundamental
data items.
The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting
the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the
stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to
the rest of its industry, implying reduced upside potential.
Net operating cash flow has declined marginally to $269.34 million or 7.60% when compared to the same
quarter last year. In conjunction, when comparing current results to the industry average, UNDER ARMOUR
INC has marginally lower results.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 1
February 28, 2016
NYSE: UA
UNDER ARMOUR INC
Sector: Consumer Goods & Svcs Apparel, Accessories & Luxury Goods Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
PEER GROUP ANALYSIS
30%
UA
V
FA
AB
OR
LE
GIL
LUX
LE
AB
-10%
R
VO
FA
Revenue Growth (TTM)
UN
PVH
Price as of 2/25/2016
$83.06
While textiles may have once been a large portion of this industry group, that segment is down to a few
players such as Unifi (UFI), Culp (CFI), Crown Crafts (CRWS), and Hallwood Group (HWG). Most of the industry
is focused on brands for shoes, clothing, eyewear, and wrist watches. Companies in the group tend to own a
variety of proprietary brands in order to design, develop, market, and distribute products targeted to specific
consumer segments.
KORS
VFC
RL
52-Week Range
$63.23-$105.89
The companies in the textiles, apparel, and luxury goods industry sell their products through multiline
retailers and over the internet. Some of the larger players in this industry group cross over into the specialty
retailer category with exclusively branded stores of their own such as Nike, Coach, Fossil, and Ralph Lauren.
LULU
CRI
Market Capitalization
$15.1 Billion
INDUSTRY ANALYSIS
The textiles, apparel, and luxury goods industry includes very well-known brands such as Nike (NKE), Coach
(COH), Luxottica Group (LUX), Ralph Lauren (RL), Fossil (FOSL), Under Armour (UA), HanesBrands (HBI),
Columbia Sportswear (COLM), Crocs (CROX), and Movado Group (MOV).
REVENUE GROWTH AND EBITDA MARGIN*
HBI
Beta
0.68
COH
14%
34%
EBITDA Margin (TTM)
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $5.2 Billion and $28.3 Billion.
Companies with NA or NM values do not appear.
*EBITDA – Earnings Before Interest, Taxes, Depreciation and
Amortization.
30%
REVENUE GROWTH AND EARNINGS YIELD
UA
PEER GROUP: Textiles, Apparel & Luxury Goods
Recent
Ticker
Company Name
Price ($)
UA
UNDER ARMOUR INC
83.06
LULU
LULULEMON ATHLETICA INC
61.35
PVH
PVH CORP
80.25
GIL
GILDAN ACTIVEWEAR INC
25.27
RL
RALPH LAUREN CORP
91.92
CRI
CARTER'S INC
99.44
LUX
LUXOTTICA GROUP SPA
58.60
VFC
VF CORP
64.68
HBI
HANESBRANDS INC
28.07
COH
COACH INC
38.90
KORS
MICHAEL KORS HOLDINGS LTD
56.47
Market
Cap ($M)
15,088
7,899
6,576
6,162
5,344
5,170
28,343
27,574
10,994
10,802
10,132
Price/
Earnings
79.10
33.34
13.65
26.05
16.59
22.00
32.74
22.62
26.48
29.47
12.92
Net Sales
TTM ($M)
3,963.31
1,958.74
7,976.60
2,463.47
7,419.00
3,057.95
9,568.78
12,376.74
5,731.55
4,237.50
4,594.42
Net Income
TTM ($M)
232.57
259.48
489.70
237.30
479.00
237.82
863.43
1,231.59
428.86
366.30
844.72
V
FA
The peer group comparison is based on Major Apparel, Accessories & Luxury Goods companies of comparable size.
AB
OR
LE
R
VO
FA
LUX
LE
AB
-10%
UN
Revenue Growth (TTM)
LULU
HBI
GIL CRI
VFC
KORS
RL PVH
COH
1%
8%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -5.7% and
28.5%. Companies with NA or NM values do not
appear.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 2
February 28, 2016
NYSE: UA
UNDER ARMOUR INC
Sector: Consumer Goods & Svcs Apparel, Accessories & Luxury Goods Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
COMPANY DESCRIPTION
Under Armour, Inc., together with its subsidiaries,
develops, markets, and distributes branded performance
apparel, footwear, and accessories for men, women, and
youth primarily in North America, Europe, the Middle
East, Africa, the Asia-Pacific, and Latin America. The
company offers its apparel in compression, fitted, and
loose types to be worn in hot, cold, and in between the
extremes. It offers various footwear products, including
football, baseball, lacrosse, softball and soccer cleats,
slides, performance training, running, basketball, and
outdoor footwear. The company also provides
accessories, which include headwear, bags, and gloves;
digital fitness platform licenses and subscriptions, as
well as digital advertising; and licenses its brands. It
primarily offers its products under the UA Logo, UNDER
ARMOUR, UA, ARMOUR, HEATGEAR, COLDGEAR,
ALLSEASONGEAR, PROTECT THIS HOUSE, and I WILL
trademarks, as well as ARMOUR39, ARMOURBITE,
ARMOURLOFT, ARMOURSTORM, ARMOUR FLEECE, and
ARMOUR BRA trademarks. The company sells its
products through wholesale channels, including national
and regional sporting goods chains, independent and
specialty retailers, department store chains, institutional
athletic departments, and leagues and teams, as well as
independent distributors; and directly to consumers
through a network of brand and factory house stores, and
Website. Under Armour, Inc. was founded in 1996 and is
headquartered in Baltimore, Maryland.
UNDER ARMOUR INC
1020 Hull Street
Baltimore, MD 21230
USA
Phone: 410-454-6428
http://www.uabiz.com
Beta
0.68
Market Capitalization
$15.1 Billion
52-Week Range
$63.23-$105.89
Price as of 2/25/2016
$83.06
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of UA shares. It is provided in order to give you a deeper understanding of our rating
methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
3.0
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, UA has a growth score better than 50% of the
stocks we rate.
strong
4.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 80% of the companies we
cover.
strong
4.5
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 80% of the companies we review.
strong
4.0
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 70% of the stocks we monitor.
strong
4.5
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 80% of the companies we analyze.
strong
0.5
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. This company
pays no dividends.
strong
THESTREET RATINGS RESEARCH METHODOLOGY
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 3
February 28, 2016
NYSE: UA
UNDER ARMOUR INC
Sector: Consumer Goods & Svcs Apparel, Accessories & Luxury Goods Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
Consensus EPS Estimates² ($)
IBES consensus estimates are provided by Thomson Financial
0.04
1.30 E
1.69 E
Q1 FY16
2016(E)
2017(E)
Market Capitalization
$15.1 Billion
52-Week Range
$63.23-$105.89
Price as of 2/25/2016
$83.06
FINANCIAL ANALYSIS
UNDER ARMOUR INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially
unchanged when compared to the same period a year ago. Sales and net income have grown, and although
the growth in revenues has outpaced the average competitor within the industry, the net income growth has
not. UNDER ARMOUR INC has average liquidity. Currently, the Quick Ratio is 1.18 which shows that
technically this company has the ability to cover short-term cash needs. The company's liquidity has
decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 23.54% from the same quarter last
year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face
financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Beta
0.68
Q4 FY15
1,170.69
206.31
177.58
105.60
Q4 FY14
895.20
166.00
146.30
87.71
Q4 FY15
129.85
2,868.90
669.00
1,668.22
Q4 FY14
593.18
2,095.08
284.20
1,350.30
Q4 FY15
50.43%
17.62%
15.17%
1.38
8.10%
13.94%
Q4 FY14
52.05%
18.54%
16.34%
1.47
9.93%
15.40%
Q4 FY15
3.13
0.29
4.06
43.78
Q4 FY14
3.67
0.17
1.73
84.71
Q4 FY15
216
0.00
0.48
7.72
NA
4,221,958
Q4 FY14
214
0.00
0.40
6.31
NA
3,219,290
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 4
February 28, 2016
NYSE: UA
UNDER ARMOUR INC
Sector: Consumer Goods & Svcs Apparel, Accessories & Luxury Goods Source: S&P
Annual Dividend Rate
NA
Annual Dividend Yield
NA
RATINGS HISTORY
Our rating for UNDER ARMOUR INC was recently
downgraded from Buy to Hold on 1/11/2016. As of
2/25/2016, the stock was trading at a price of $83.06
which is 21.6% below its 52-week high of $105.89
and 31.4% above its 52-week low of $63.23.
HOLD: $69.96
BUY: $58.35
2 Year Chart
From
Buy
Buy
52-Week Range
$63.23-$105.89
$100
Price/Earnings
1
2
3
premium
$80
To
Hold
Buy
Price reflects the closing price as of the date listed, if available
RATINGS DEFINITIONS &
DISTRIBUTION OF THESTREET RATINGS
4
5
UA 79.10
Peers 29.67
• Premium. A higher P/E ratio than its peers can
signify a more expensive stock or higher growth
expectations.
• UA is trading at a significant premium to its peers.
Price/Projected Earnings
1
2
3
premium
4
5
2
3
4
5
Price/Book
32.19% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
UA 10.76
Peers 6.24
• Premium. A higher price-to-book ratio makes a
stock less attractive to investors seeking stocks
with lower market values per dollar of equity on the
balance sheet.
• UA is trading at a significant premium to its peers.
35.29% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
32.52% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
premium
Price/Sales
1
2
premium
4
5
Price to Earnings/Growth
4
5
discount
1
2
3
premium
4
5
discount
UA 3.32
Peers 1.84
• Premium. The PEG ratio is the stock’s P/E divided by
the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
• UA trades at a significant premium to its peers.
Earnings Growth
1
2
3
4
lower
5
higher
UA 10.52
Peers 17.27
• Lower. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
• However, UA is expected to significantly trail its
peers on the basis of its earnings growth rate.
Sales Growth
discount
UA 4.53
Peers 2.75
• Premium. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
• UA is trading at a significant premium to its
industry.
3
UA NM
Peers 26.92
• Neutral. The P/CF ratio, a stock’s price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
• UA's P/CF is negative making the measure
meaningless.
discount
3
2
premium
discount
UA 49.15
Peers 26.25
• Premium. A higher price-to-projected earnings ratio
than its peers can signify a more expensive stock
or higher future growth expectations.
• UA is trading at a significant premium to its peers.
1
1
Price/CashFlow
discount
(as of 2/25/2016)
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
Price as of 2/25/2016
$83.06
$120
2015
MOST RECENT RATINGS CHANGES
Date
Price
Action
1/11/16
$69.96 Downgrade
2/25/14
$58.35 No Change
Market Capitalization
$15.1 Billion
VALUATION
HOLD. UNDER ARMOUR INC's P/E ratio indicates a significant premium compared to an average of 29.67 for
the Textiles, Apparel & Luxury Goods industry and a significant premium compared to the S&P 500 average of
21.53. For additional comparison, its price-to-book ratio of 10.76 indicates a significant premium versus the
S&P 500 average of 2.56 and a significant premium versus the industry average of 6.24. The price-to-sales
ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon
assessment of these and other key valuation criteria, UNDER ARMOUR INC proves to trade at a premium to
investment alternatives within the industry.
$60
2014
Beta
0.68
1
2
3
lower
4
5
higher
UA 28.49
Peers 5.86
• Higher. A sales growth rate that exceeds the
industry implies that a company is gaining market
share.
• UA has a sales growth rate that significantly
exceeds its peers.
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 5