This is a step-by-step stock review to answer the question, is Under Armour (UA) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Under Armour (UA) stock a good buy?
- Under Armour Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Under Armour (UA) stock a good buy?
1. Under Armour Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founding: Under Armour was founded in 1996 by Kevin Plank, a former University of Maryland football player, in his grandmother’s basement.
- First Product: Introduced a moisture-wicking synthetic fabric to keep athletes dry and comfortable, revolutionizing athletic wear.
- Early Success: Gained traction with sports teams and athletes, leading to rapid growth and increased visibility.
- Expansion: Expanded product lines to include a wide range of athletic apparel, footwear, and accessories for men, women, and youth.
- IPO: Went public in 2005, trading on the New York Stock Exchange under the ticker symbol “UA” and later added “UAA”.
- Innovations: Known for innovative products like HeatGear®, ColdGear®, and Charged Cotton® that enhance athletic performance.
- Sponsorships and Endorsements: Secured high-profile endorsements and sponsorships with athletes like Stephen Curry and teams in various sports, boosting brand visibility.
- Global Presence: Expanded internationally with stores and distribution in Europe, Asia, and Latin America.
- Connected Fitness: Acquired fitness and technology companies, including MapMyFitness, Endomondo, and MyFitnessPal, to integrate digital health and fitness solutions.
- Brand Community: Built a strong community around the brand through social media, events, and partnerships, fostering customer loyalty.
- Sustainability Efforts: Focused on sustainability initiatives, including environmentally friendly materials and manufacturing processes.
- Financial Performance: Experienced periods of rapid growth and profitability, followed by challenges in market competition and restructuring efforts to stabilize and refocus the business.
Under Armour’s history highlights its innovative approach to athletic wear, strategic growth, and commitment to enhancing athletic performance, establishing it as a major player in the sports apparel industry.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 39
- MOS: 80%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Under Armour makes money:
- Retail Sales: Generates revenue from selling athletic apparel, footwear, and accessories in its physical stores and online.
- Wholesale Distribution: Earns from selling products to retail partners and third-party distributors, expanding market reach.
- E-Commerce: Profits from online sales through its website and mobile app, catering to a global customer base.
- Licensing: Makes money from licensing its brand and logos to other companies for products such as accessories and apparel.
- Sponsorships and Endorsements: Earns from partnerships with athletes and teams, which boost brand visibility and drive sales.
- Outlet Stores: Generates income from sales in outlet stores, offering discounted products to attract budget-conscious shoppers.
- Connected Fitness: Profits from its connected fitness products and services, including fitness apps and wearable technology.
- MyFitnessPal
- Endomondo
- MapMyFitness
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Under Armour stacks up against other companies.
- Canada Goose Holdings Inc. (GOOS) – 67
- Albany International Corp. (AIN) – 67
- Vince Holding Corp. (VNCE) 61
- Ralph Lauren Corporation. (RL) – 61
- Gildan Activewear Inc. (GIL) – 50
- Under Armour, Inc. (UA) – 39
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founding Under Armour:Kevin Plank Established Under Armour in 1996, revolutionizing athletic apparel with innovative moisture-wicking fabrics.
- Product Innovation: Developed key products like HeatGear®, ColdGear®, and Charged Cotton®, which significantly influenced athletic wear.
- Revenue Growth: Drove rapid revenue growth, expanding Under Armour from a startup into a global athletic apparel leader.
- IPO: Successfully led Under Armour through its initial public offering (IPO) in 2005, raising substantial capital and increasing visibility.
- Brand Expansion: Expanded the brand’s presence internationally and diversified product lines to include footwear and accessories.
- Acquisitions: Acquired companies like MyFitnessPal, Endomondo, and MapMyFitness, enhancing the brand’s fitness technology and app ecosystem.
- Endorsements and Sponsorships: Secured high-profile endorsements with athletes and teams, boosting brand recognition and market share.
- Retail Growth: Expanded retail footprint with flagship stores and enhanced e-commerce capabilities, improving customer reach and engagement.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Under Armour (UA) is 53/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Under Armour (UA) stock a good buy?
Some of the top questions investors can have is Under Armour (UA) stock a good buy or should I buy Under Armour (UA) stock?
Under Armour is a strong investment due to its innovative product offerings and strong brand presence. Founded by Kevin Plank, the company revolutionized athletic wear with moisture-wicking fabrics and continues to innovate with products like HeatGear®, ColdGear®, and Charged Cotton®. Under Armour has shown significant revenue growth and expanded its product lines to include footwear and accessories, attracting a broader customer base.
Strategic endorsements with high-profile athletes and teams have boosted brand recognition and market share. The company’s focus on expanding its retail footprint and enhancing e-commerce capabilities has improved customer reach and engagement.
However, the competitive nature of the athletic apparel industry poses challenges. Despite this, Under Armour’s strong brand, continuous innovation, and strategic marketing efforts make it a compelling investment choice in the sports apparel sector.
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To truly know if Under Armour is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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