Under Armour Inc (UAA, Financial) saw its shares decline by 18.26% following President Trump's announcement of "reciprocal tariffs" on all U.S. imports, which will be imposed at a minimum rate of 10%. Consequently, investors reacted swiftly, impacting the stock price to $5.395.
Despite the drop, Under Armour Inc (UAA, Financial) is currently trading significantly below its GF Value, which indicates that the stock is "Significantly Undervalued." The GF Value suggests a price of $7.91. Further details can be found on the GF Value page.
Analyzing the company's financial position, Under Armour's Altman Z-score is 2.29, situating it in the 'grey area,' which implies the company may be under some financial stress. However, the Beneish M-Score of -2.62 suggests that Under Armour is unlikely to be a manipulator.
Valuation metrics show that the company's Price-to-Book (PB) Ratio and Price-to-Sales (PS) Ratio are near their 10-year lows, indicating potential value for long-term investors. Specifically, the PB Ratio is 1.17, close to the 10-year low. Similarly, the PS Ratio is 0.55, which is also near a historical low.
In terms of revenue growth, Under Armour experienced a revenue decline per share over the past 12 months. However, the company maintains a strong e-commerce presence and an extensive network of factory and brand stores, which constitutes a significant part of its direct-to-consumer segment.
Considering the broader market context, Under Armour faces challenges in the current economic climate with trade tariffs impacting operational costs. Nonetheless, it retains growth potential with its strong brand and diversified global presence.
Investors should remain cautious and keep an eye on future earnings announcements and market developments, especially regarding trade policies, which could further influence the stock's performance.
