📊 UA Key Takeaways
Is Under Armour, Inc. (UA) a Good Investment?
Under Armour faces severe operational challenges with negative operating and net income despite flat revenue growth, indicating structural profitability issues beyond cyclical headwinds. While the company maintains positive free cash flow and adequate liquidity, the -31.5% ROE and -3.4% operating margin suggest fundamental business model stress that requires significant operational turnaround.
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.
Why Buy Under Armour, Inc. Stock? UA Key Strengths
- Positive free cash flow of $185.1M provides liquidity buffer despite losses
- Gross margin of 46.6% demonstrates pricing power and product quality in core business
- Current ratio of 1.43x indicates adequate short-term liquidity position
- Manageable debt-to-equity ratio of 0.69x provides financial flexibility
- 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 margin of -3.4% and net margin of -11.9% indicate fundamental unprofitability and operational inefficiency
- Stagnant revenue growth (0.0% YoY) combined with operating losses suggests inability to achieve profitable scale
- Negative interest coverage ratio of -3.5x indicates insufficient operating earnings to service debt obligations
- Quick ratio of 0.92x falls below 1.0x, raising concerns about ability to cover current liabilities with liquid assets
- Deteriorating net income performance (-186.7% YoY) demonstrates worsening profitability trajectory
- 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 margin trend toward positive territory
- Revenue growth acceleration paired with cost structure improvement
- Free cash flow sustainability as operating losses may eventually impact liquidity
- Gross margin stability to confirm product demand remains intact
- Quarterly earnings trajectory for signs of operational turnaround
- 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
The relatively thin 4.9% FCF margin may limit capital allocation flexibility.
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 0% decline. The most recent EPS of $0.81 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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775178452.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775178329.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775178171.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775177973.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775177887.xml | View → |
❓ Frequently Asked Questions about UA
What is the AI rating for UA?
Under Armour, Inc. (UA) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UA's key strengths?
Claude: Positive free cash flow of $185.1M provides liquidity buffer despite losses. Gross margin of 46.6% demonstrates pricing power and product quality in core business. 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 margin of -3.4% and net margin of -11.9% indicate fundamental unprofitability and operational inefficiency. Stagnant revenue growth (0.0% YoY) combined with operating losses suggests inability to achieve profitable scale. 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 $3.8B.
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 $-1.06.
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 rating reflects both perspectives for balanced insights.
Is UA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Under Armour, Inc. has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is UA stock overvalued or undervalued?
Valuation metrics for UA: ROE of -31.5% (sector avg: 18%), net margin of -11.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy UA stock in 2026?
Our dual AI analysis gives Under Armour, Inc. a combined SELL rating 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 $257.1M, with capital expenditures of $72.0M. FCF margin is 4.9%.
How does UA compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -11.9% (avg: 8%), ROE -31.5% (avg: 18%), current ratio 1.43 (avg: 1.5).