📊 UA Key Takeaways
Is Under Armour, Inc. (UA) a Good Investment?
Under Armour is in financial distress with flat revenue growth, deeply negative profitability (-10% net margin), and negative free cash flow of -$162.2M despite a healthy 45.5% gross margin, indicating severe operational execution challenges. The company is burning cash while unable to achieve operating leverage, creating an unsustainable capital structure.
Under Armour’s fundamentals show a weak earnings profile: revenue is flat, operating results are negative, and net losses widened sharply, indicating that the business is not converting sales into sustainable profitability. While gross margin remains respectable and free cash flow is still positive, current cash generation appears to be offset by poor earnings quality, weak returns on capital, and limited margin of safety if operating performance does not recover.
Under Armour, Inc. Key Strengths (UA)
- Gross margin of 45.5% demonstrates product pricing power and brand strength
- Current ratio of 1.62x and $309.2M cash provide near-term liquidity runway
- Debt-to-equity ratio of 0.84x is moderate relative to industry leveraging
- Gross margin of 46.6% suggests the brand still retains pricing power and product-level profitability
- Positive operating cash flow and free cash flow indicate the business is still generating cash despite accounting losses
- Liquidity is adequate with a 1.43x current ratio, 0.92x quick ratio, and meaningful cash on hand
UA Stock Risks: Under Armour, Inc. Investment Risks
- Operating income of -$163.1M represents structural profitability failure despite $5B revenue scale
- Negative free cash flow of -$162.2M is unsustainable and constrains strategic flexibility
- Zero YoY revenue growth with declining net income (-146.3%) indicates competitive pressure and execution deterioration
- $1.2B long-term debt combined with negative cash generation creates refinancing and solvency risk
- Negative interest coverage of -3.1x means operating income cannot service debt obligations
- Severe profitability deterioration with negative operating margin, negative net margin, and sharply worse net income
- Negative ROE and ROA indicate inefficient use of shareholder capital and assets
- Negative interest coverage and nearly $1.0B of long-term debt reduce financial flexibility if earnings remain weak
Key Metrics to Watch
- Operating cash flow trajectory toward positive territory
- Revenue growth rate inflection (current 0% YoY unacceptable)
- Operating margin improvement path and SG&A expense reduction
- Cash burn rate and runway before liquidity stress
- Debt refinancing needs and covenant compliance through 2027
- Operating margin recovery and net income trend
- Free cash flow durability alongside inventory and working-capital efficiency
Under Armour, Inc. (UA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Under Armour, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
UA Profit Margin, ROE & Profitability Analysis
UA vs Consumer Sector: How Under Armour, Inc. Compares
How Under Armour, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Under Armour, Inc. Stock Overvalued? UA Valuation Analysis 2026
Based on fundamental analysis, Under Armour, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Under Armour, Inc. Balance Sheet: UA Debt, Cash & Liquidity
UA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Under Armour, Inc.'s revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $0.52 reflects profitable operations.
UA Revenue Growth, EPS Growth & YoY Performance
UA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.3B | $1.2M | $0.00 |
| Q2 2026 | $1.3B | -$18.8M | $-0.04 |
| Q1 2026 | $1.1B | -$2.6M | $-0.01 |
| Q3 2025 | $1.4B | $1.2M | $0.00 |
| Q2 2025 | $1.4B | $104.7M | $0.23 |
| Q1 2025 | $1.2B | $10.0M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Under Armour, Inc. Dividends, Buybacks & Capital Allocation
UA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Under Armour, Inc. (CIK: 0001336917)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UA
What is the AI rating for UA?
Under Armour, Inc. (UA) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UA's key strengths?
Claude: Gross margin of 45.5% demonstrates product pricing power and brand strength. Current ratio of 1.62x and $309.2M cash provide near-term liquidity runway. ChatGPT: Gross margin of 46.6% suggests the brand still retains pricing power and product-level profitability. Positive operating cash flow and free cash flow indicate the business is still generating cash despite accounting losses.
What are the risks of investing in UA?
Claude: Operating income of -$163.1M represents structural profitability failure despite $5B revenue scale. Negative free cash flow of -$162.2M is unsustainable and constrains strategic flexibility. ChatGPT: Severe profitability deterioration with negative operating margin, negative net margin, and sharply worse net income. Negative ROE and ROA indicate inefficient use of shareholder capital and assets.
What is UA's revenue and growth?
Under Armour, Inc. reported revenue of $5.0B.
Does UA pay dividends?
Under Armour, Inc. does not currently pay dividends.
Where can I find UA SEC filings?
Official SEC filings for Under Armour, Inc. (CIK: 0001336917) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UA's EPS?
Under Armour, Inc. has a diluted EPS of $-1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is UA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Under Armour, Inc. has a C grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is UA stock overvalued or undervalued?
Valuation metrics for UA: ROE of -35.0% (sector avg: 18%), net margin of -10.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is UA's AI grade for 2026?
Our dual AI analysis gives Under Armour, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UA's free cash flow?
Under Armour, Inc.'s operating cash flow is $-75.1M, with capital expenditures of $87.1M. FCF margin is -3.3%.
How does UA compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -10.0% (avg: 8%), ROE -35.0% (avg: 18%), current ratio 1.62 (avg: 1.5).