The company was cited as stating their United States market is struggling but the international seems to be picking up steam. Some latest numbers are 22 cents adjusted, which is above the street and revenue was short at $1.4 billion. This seems to be a common thread that many retail names and brands are struggling across all markets in the U.S. That being said, there are sure to be many eyes on the holiday season and the numbers that come out.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Under Armour income statement, its balance sheet, and the statement of cash flows. Potential Under Armour investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Under Armour investors may use each financial statement separately, they are all related. The changes in Under Armour's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Under Armour's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Under Armour
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Under Armour performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Under Armour shares is the value that is considered the true value of the share. If
the intrinsic value of Under is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Under Armour. Please read more on our
fundamental analysis page.
How effective is Under Armour in utilizing its assets?
Under Armour A reports assets on its Balance Sheet. It represents the amount of Under resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Under Armour aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Apparel, Accessories & Luxury Goods space. To get a better handle on how balance sheet or income statements item affect Under volatility, please check the breakdown of all its
fundamentals.
Are Under Armour Earnings Expected to grow?
The
future earnings power of Under Armour involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Under Armour factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Under Armour
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Under
expected earnings.
Under Armour Gross Profit
Under Armour Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Under Armour previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Under Armour Gross Profit growth over the last 10 years. Please check Under Armour's
gross profit and other
fundamental indicators for more details.
Breaking down Under Armour Indicators
A huge factor that the company is facing as well as declining retail is the shear amount of competition in this space. Under Armour is going against companies such as Nike and Adidas, which are established brands that have been around for decades. Now people can recognize brands such as Under Armour, but the others have history and can make that connection that Under Armour may not be able to make.
Over the last year, the stock is down over fifty percent and that is a huge issue considering this company used to be on the cutting edge of design. In order to full understand the issue, it is critical to read the annual and quarterly reports and see what management is saying. Listen to the conference and get the tone from analysts and go from there.
If you are looking at this industry, there are certainly other competitors that may provide better value. Take a peak into Nike or Adidas and see how they are operating. There could be a crucial difference in operations or sales that is setting each other apart. With that, teams such as Notre Dame have begun using their brand for athletic wear and this could be the steps needed to get the brand out there.
Take the time to do the due diligence before pulling the trigger on an investment. If you are in doubt and unsure on what to do, look broader and research ETF’s. There are certainly many options to help you gain exposure. With that, Under Armour certainly has an uphill battle but it is not out of the game yet. You have to remember these companies are global and have more markets than just the United States.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Under Armour A. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com