Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Under Armour, Inc. (NYSE: UAA) is a developer, marketer and distributor of branded athletic performance apparel, footwear and accessories. It is engaged in developing, marketing and distributing branded performance apparel, footwear and accessories for men, women and youth. It operates in four geographic segments: North America, comprising the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific, and Latin America.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 15.49% in the last three months as well as a correction of 20.59% in past six months.
• The stock is in its lower band of its 52-week range of USD 9.50 and 52-week low price of USD 6.18. Post the announcement of FY24 results the stock has almost consolidated only with a mere return of 0.48%, and current price near an important support zone of USD 6.00-USD 6.50.
• The price is currently trading below between its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 49.81.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~42.33% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc. and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~9.64% and ~7.69%, respectively.

1.4 Key Metrics:

From 2020 to 2024, Under Armour (UAA) demonstrated consistent revenue growth, reaching a peak of USD 5,903 million in 2023, with a slight adjustment to USD 5,702 million in 2024, showcasing resilience amidst market dynamics. Concurrently, the company maintained commendable gross profit figures, remaining above industry medians throughout the period, and displaying efficient cost management despite minor fluctuations. Moreover, UAA's operating margin percentages remained robust, consistently exceeding industry medians, with a notable improvement from 44.79% in 2023 to 46.13% in 2024, indicating sustained profitability and operational efficiency enhancements over time. In addition, UAA's financial health is reflected positively in its current ratio and debt/equity ratio, both surpassing industry medians in FY24, underscoring the company's strong liquidity position and prudent debt management strategies, which further solidify its stability and resilience within the industry.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of FY24:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 15.49% in the last three months as well as a correction of 20.59% in past six months.
• The stock is in its lower band of its 52-week range of USD 9.50 and 52-week low price of USD 6.18. Post the announcement of FY24 results the stock has almost consolidated only with a mere return of 0.48%, and current price near an important support zone of USD 6.00-USD 6.50.
• The price is currently trading below between its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 49.81.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 12, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.