Abstract
Under Amour, Inc. is a performance based apparel company that is quickly growing to become one of the top companies in the industry. They are known for high-quality, innovative products that are giving athletes a competitive advantage. This paper describes the history of the company, analyzes the company’s performance and required rate of return, discusses the projected future growth rate of earning, values the company, and provides a recommendation to buy stock at the estimated price target of Keywords: stock analysis, return on equity, projected future growth rate, required rate of return, intrinsic value A Summary and Technical Analysis of the Under Armour, Inc. (UA) Stock on the New York Stock Exchange Under
…show more content…
Although Under Armour has done well over the past few years, they face though competition from top players like Nike and Adidas. These larger companies have more resources and a greater presence in the international market. There is also a threat of new entrants, and since UA does not hold patents for its products, new and existing companies may begin to compete for a spot in the performance apparel market. Other threats include the company’s limited bargaining power (resulting from their diverse supplier base) and the leverage held by wholesale customers. Fortunately, UA does have the advantage of strong brand recognition, a reputation for innovative and high-quality products, and testimonials of world-renowned athletes, minimizing the threat of substitute products. Although the company was established more than fifteen years ago, Under Armour, Inc. continues to be in the growth phase of its life cycle. Revenues this quarter increased almost 23% year over year, and the Compound Annual Growth Rate (CAGR) for the last five years is about 24%. This is higher than the average quarterly revenue growth (Y/Y) of 8% for the apparel industry, and places UA above eight percent of its competitors. UA has also outperformed most of its competitors in quarterly Earnings Per Share (EPS) growth. With an EPS Growth (Qtrly YoY) of 166.7%, the company is ranked 5th of the 152 in the textile-apparel industry, as reported by Yahoo Finance. This past quarter the
Under Armour is in the Textile- Apparel Clothing industry, in the consumer goods sector. The market has been driven by economic recovery, new product offerings and a
Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of
Under Armour has proven year over year that they are indeed a growth company. As their brand recognition and product availability increases so do their revenues. Under Armour achieved a growth in net revenue by over 18 percent, increased net income by 22 percent (suggesting financial discipline) all leading to their ability to sustain growth year over year (Under Armour 10K, 2009). This considerable increase in net revenue is attributed to an increase in apparel and the introduction of footwear in the first quarter of 2009 (2009). Although Under Armour has only been around 14 years they have only been traded publicly since 2005 (2009).
There is a high threat of substitutes in the athletic gear industry especially when competing with companies such as Nike and Adidas who have been around much longer, have the funds to continuously innovate their products and already hold a large market share. Under Armour has used “authenticity” as it’s guiding principle to grow the company and advertise their products, but if they wish to be the number one brand of athletic gear they will have to appeal to people who are also concerned with the look of the product and not just performance. According to research done by NPD Group, almost 80 percent of activewear is used for non-sports activities. “Under Armour will need to find a
Born in 1822 Harriet Tubman was born into slavery she was a very skinny girl. She did not get much to eat do the fact that her owner was very rude and was harsh to her. She was beaten almost every day because she was curious and like to explore the outside world. She did not do much as kid do to the fact the was so skinny and could not do much.As she grown she was becoming less of a weakling.As a teen she was mistakenly hit in the head with a lead weight which caused her narcolepsy.Which is a condition where she randomly falls asleep at any given time.
The first exposure is presented to Under Armour is their relationship with the overseas manufacturing partner. Shortages of raw materials, delays, and inefficiencies in the manufacturing process can disrupt the product launch. If Under Armour is going to make claims to deliver top notch equipment in a period of time, they have to rely on overseas communication, manufacturing and delivery to do so. There is a concern that the increases in the manufacturing costs can start reducing profit-margins. As seen over the past election debates,
a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If
The organization trades on the NYSE market and over the years, it has witnessed a substantial growth in the value of the stocks. In this case, the values of the stocks are at $46.99/share. As at April 2016, the organization witnessed a split in its share prices. In mid-April, the organization closed at 45% down from the previous close of 85.97% that had been recorded just the previous day. Based on the split stocks share, it is expected that Under Armour, Inc. is in the process of enjoying a tremendous growth from its per stock prices.
In today’s athletic market world, being the number one is what many athletes strive for—that is what sets the standards for many sport clothing companies, to deliver products that allow athletes increase their performance while striving to take the number “one” spot. Under Armour works to deliver products that do that and more. Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, design, and the relentless pursuit of innovation” (Under Armour, Inc). Baltimore, Maryland-based Under Armour, founded in 1996 by ex-football player Kevin Plank, who transformed the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. Plank’s mission was to develop a shirt using synthetic materials that handled perspiration most efficiently than was previously expected. Under Armour’s ability to target their products to a wide range of potential clients has enhanced their ability to continue to grow within the athletic marketplace. Under Armour, it is classified as a high-end fitness clothing supplier that appeals to a diverse income audience. This audience has been reached by the outstanding advertising strategies and that include men, women and children. Under Armour currently uses a mixture of pull marketing and different campaigns for its diverse product lines. The overall goal for Under
The following paper will discuss Under Armour’s financial worthiness. An American sports manufacturer and distributor company of sportswear, athletic footwear, and sports accessories. The company’s Competitive advantages, Porter’s Five Forces theory, and analyzing its Industry are discussed. Next, the Sellers framework, Price to Earnings (P/E), and Price to Earnings Growth (PEG) along with Price to Book (P/B) and Price to Sales (P/S) are analyze and discussed as well. Furthermore, the paper discusses the Company’s Fixed Income Makeup (Bonds) analysis and stand point. The fundamental review and analysis of Under Armour including commentary about their stock value and fixed income status is also discussed. Comments on how Under Armour is performing and positioned relative to their competitors and the company’s market
1. We chose to study Under Armour because of their explosive growth over the last five years in a very competitive industry. From a marketing standpoint, it is quite apparent that the company is doing well and one could assume that because the firm appears to have had great success in aggressively expanding their market share, they are by extension creating value for investors. By studying the financial information, we aimed to confirm or deny whether Under Armour is indeed creating value.
In addition, Under Armours'(UA) stock is known for its fitness applications and apparels, which gives it three important reasons to choose this company. The first reason is that they treat their employees in a beneficial way. UA Employees are treated in a beneficial way because they are very selective on hiring people for their particular skills. There particular skills allow them to earn benefits from having a salary income, 401k plan and health options. The second reason is that the stock has long term investments which revenue is rising. The last reason is that the goals keep on changing.
The action potential occurs in the space between the myelinated sections of the axon. The diffusion and electrostatic pressure pushes sodium ion Na+ into the cell despite the lack of permeability of the membrane. The cell uses sodium-potassium transporters to pump out three Na+ and pump in two potassium ions K+ resulting in a low intracellular levels of Na+. this creates a voltage difference of -70mv which is the neurons resting potential. When the neuron is stimulated by a presynaptic neuron the sodium channels open, letting in positive sodium ions in. this changes the electrical environment inside the cell more positive than the outside. This process is called depolarization, and it causes a chain reaction with the rest of the
Under Armour’s business strategy towards market segmentation is broken down into three different basis; Age, Gender, Uses. The first major market segmentation is by age, different age groups demand different products and Under Armour has produced certain merchandise to appeal to each generation. The second is Gender, both male and female respectively make up roughly 50% of the market equally.To appeal to females UA produces apparel in brighter colo, as a fashion forward athletic wear. While for males they they cater toward masculine vibe of tight fitting and resistant to wear and tear. Lastly, UA segments by the range of uses for their products.
There are many parts of a story that work together to make it worth reading. This could include the theme, plot, structure, characters, setting, or tone. Authors use a number of different literary devices that allow them to expand upon their ideas and make their stories clearer. This could be through a central theme or through symbols that contribute to telling a story. Each practice is used to further describe written literary work.