Under Armour Inc A UA equity, debt and subsidiaries

Accuracy score :
97%

Under Armour Inc A  UA

Summary (from latest annual and quarterly report)

  • Total equity: 2.1 billion USD
  • Market Cap is 5.67 billion USD (the last price of the stock is 12.85 USD)
  • Under Armour Inc is a developer, marketer and distributor of branded performance apparel, footwear and accessories for men, women and youth
  • Equity of total company increased from 1.35 billion USD in 2014 to 2.1 billion in 2017
  • Company has 258 million USD in cash on account (from latest quarterly report)
  •  Total equity – cash on account = 2.1 billion USD – 258 million USD = 1.84 billion USD
  • In 2017 company has 771 million USD long-term debt, short-term debt is 297 million USD (In 2016 company had 790 million USD long-term debt, short-term debt was 27 million USD)
  • Company's revenue increased in 2016 to 4.82 billion USD from 3.96 billion in 2015
  • Net income in 2016 was 257 million USD, Net income in 2015 was 233 million USD

 

Opinion about the company

Fundamentally it is a good company and in the future, we can expect its growth (Total debt is 1.06 billion USD, the company has 258 million USD in cash on account, ROE is around 7 %).

 

Under Armour Inc A  UA

Under Armour Inc is a developer, marketer and distributor of branded performance apparel, footwear and accessories for men, women and youth. Their products are sold worldwide and are worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as by consumers with active lifestyles. In 2016, sales of apparel, footwear and accessories represented 67 %, 21% and 8% of net revenues, respectively. Licensing arrangements, primarily for the sale of their products, and revenue from their Connected Fitness business represented the remaining 4% of net revenues.

  • UA North America business represents 83% of total revenues
  • UA international business represents 15.4% of total revenues (increased 11% from the prior year)
  • UA Connected Fitness business represents 1.6% of total revenues

Over the last 10 years, from 2006-2016, revenue grew at a 27% annual rate. In 2016 sales slowed to 22%, with North America up 16% and international growing 63%. In the 4th quarter sales were negatively impacted by the Sports Authority bankruptcy, resulting in excess inventory and steep discounting. Current consensus estimates expected North America sales to be flat in 2017 and international to grow 50%, providing 9% overall growth. Among the top three sports brand companies, Under Armour has grown its market share from 1% in 2005 to 8% in 2016. As a group, revenues have grown at an 8% CAGR over the last 10 years and are expected to grow at an 8% rate over the next five years. Gross margins for the company are in line with those of its competitors. According to analysts, Under Armour will double its current profit margin as it matures, achieves greater scale, and benefits from a lower tax-rate due to larger international profits.

Their principal executive and administrative offices are located at an office complex in Baltimore, Maryland, which includes 400 thousand square feet of office space that they own and 126 thousand square feet that they are leasing. The majority of their sales are generated through wholesale channels, which include national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments and leagues and teams. In addition, UA sells its products to independent distributors in various countries where the company generally does not have direct sales operations and through licensees.

 UA standalone subsidiaries and acquisitions :

  • In 2013 Under Armour acquired digital app maker MapMyFitness for 150 million USD
  • In 2015 Under Armour acquired the calorie and nutrition counting app maker MyFitnessPal for 475 million USD, as well as the fitness app maker Endomondo for 85 million USD

 

Total =  710 million usd

 

  • On January 21, 2014, it was announced that the University of Notre Dame and Under Armour had come to terms on providing uniforms and athletic equipment for the university. This 10-year deal was the largest of its kind in the history of college athletics and became effective July 1, 2014. As of 2014, Under Armour has operated revenue and operating profit more than 30%, accelerating from their 2013 pace. Its share price has soared 62.5% this year
  • On January 6, 2016, Under Armour announced a strategic partnership with IBM to use IBM Watson's cognitive computing technology to provide meaningful data from its IOT kit and UA Record app
  • On March 3, 2016, the company became the Official Match Ball Partner of the North American Soccer League
  • On May 26, 2016 Under Armour and UCLA announced their plans for a 15-year, $280 million contract, making this the largest show and apparel sponsorship in NCAA history
  • In July 2016 Under Armour leased the 53,000 square feet space formerly occupied by FAO Schwarz on New York's Fifth Avenue; it projected that its store would open in 2018. FAO Schwartz had been paying $20 million in rent
  • Under Armour will outfit all Major League Baseball players beginning in 2020 under an agreement reached with the league
  • On March 16th, 2016, the company released a statement outlining its desire to issue class C shares as a stock dividend on a one-for-one basis to all existing holders of Under Armour's Class A and B common stock. Adding an additional class of shares has the same effect as a two-for-one stock split where the current number of outstanding shares is doubled in order to allow for the one-for-one conversion process. Under Armour's move is essentially a stock split where shareholders who own "x" amount of shares are given the same amount in class C shares through the dividend