NYSE:UA
$23.95
(2/9 11:28AM)
+0.0%
| Open | $24.35 |
Mkt Cap | $901.8 Million |
| High | $24.4 |
52Wk High | $33.31 |
| Low | $23.9 |
52Wk Low | $11.94 |
| Volume | 136,841 |
Avg Vol 10D | 1.1 Million |
Ockham's Rating/Recommendation Summary
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UA Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 6 years. For, UA the high and low end of the Price to Sales per share ratios are 4.29x and 1.97x respectively.
Notice that UA's current Price to Sales per share ratio is 1.43x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $24.44, UA is 55% below where we would expect to see it. This will beneficially factor into our final analysis of UA as it is not often that this stock sinks to these levels.
UA Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently UA is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 6 years of cash earnings levels for UA to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 46.27 and a 20.84 low over the same period.
Now that UA’s current price is $24.44 and its Price to Cash Earnings ratio is 18.38, we are very positive on its outlook from the cash earnings perspective. In fact, UA is now trading a full 46% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why UA has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
UA Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As of the time of this report, our data provider does not have historical data for UA. Therefore, we are not utilizing the dividends portion in our study. So, we do not know whether UA currently pays a dividend at present or not, we have an "expected dividend" payment listed in key fundamentals but cannot varify it.
Check Out Squawk On The Street and News on UA
The latest news on Squawk On The Street in regards to UA came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, UA has been less covered in the news compared to the rest of our universe of stocks. We consider UA as Undervalued at the current price of $24.04. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Under Armour, Incorporated Class A will beat the market in the foreseeable future. Please be aware that UA is trading off $1.93 today, and is clearly being affected by the latest news.
“… a lot of people have said that warm winters have want been good to UNDER ARMOUR and now we have a cold winter. What does that mean? > > I think our fbs speak for themselves. …”
Sentiment and UA Discussed on Mad Money
It is always benefitial to understand the market's sentiment for a particular stock, and Mad Money talked about some aspects of sentiment for UA recently.
Based on our methodology, Under Armour, Incorporated Class A should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; UA has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… caller: I want to talk about athletic apparel, UNDER ARMOUR. > > everyone is telling me to go bullish on UNDER ARMOUR. I talk about it negatively in my book. …”
It's Been a Month or More Since Squawk On The Street Discussed Under Armour, Incorporated Class A
After a month of relative quiet from UA, they have appeared back in the news.
Based on our methodology, Under Armour, Incorporated Class A should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; UA has received less coverage from the financial media in business television and blogs.
“… Looking at that interday chart you can see with good eyesight right over there with a little bit of a and UNDER ARMOUR. And it's a $1. 3 billion market cap. …”
What are the Experts Saying? Analysts and UA on Squawk On The Street
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Squawk On The Street.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Under Armour, Incorporated Class A has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on UA, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… UNDER ARMOUR. Initiated buy at jeffries. > > moody's is one i'm watching, mco initiated a buy. Bank of america, merrill lynch, price target of 28 buck as share. …”
The Chief Executive of UA Was on Discussed on Power Lunch
>> and listen if you brought the weather, stay as long as you >> stay for a while. >> programming note, the ceos of UNDER ARMOUR and neiman marcus will be joining us tomorrow to talk about their holiday season for their respective businesses. >> the house narrowly passed the health care reform bill. The president pushing hard for senate approval. Does it help solve a genuine crisis or is it a backdoor tax
“… narrowly passed the health care reform bill. The president pushing hard for senate approval. Does it help solve a genuine crisis or is it a backdoor tax …”
Under Armour, Incorporated Class A (UA) Discussed on CNBC's Mad Money
Under Armour, Incorporated Class A is in the news. Find out how this impacts UA trading on Ockham Research.
It got crushed. How about the associated press headline at 8:32 yesterday. UNDER ARMOUR raises outlook on then we got this much more correct headline from a.P. UNDER ARMOUR falls as investors worry about q-4. If they raise outlook, why are we worried? It's the new math. Memo to UNDER ARMOUR, if you're going to have a bad fourth quarter, don't try to hide the fact in the full-year numbers. Do you think we're that stupid? They beat the earnings estimates by eight cents but only raised full-year guidance by five cents. Doesn't that actually mean the fourth quarter might come up three cents short?
“… s the new math. Memo to UNDER ARMOUR, if you're going to have a bad fourth quarter, don't try to hide the fact in the full-year numbers. Do you think we're that stupid? They beat the earnings estimates by eight cents but only raised full-year guidance by five cents. Doesn't that actually mean the fourth quarter might come up three cents short? …”
Under Armour, Incorporated Class A (UA) Discussed on CNBC's Fast Money
Under Armour, Incorporated Class A is in the news. Find out how this impacts UA trading on Ockham Research.
>> stock made a 52-week on the capital market story is still in play. 30 bucks, that's where you want to buy it. Swing area, previous resistance becomes support. >> drop for UNDER ARMOUR, down a whopping 13%, karen. >> yeah, you know, it's groundhog day for them. Yesterday the stock was also I believe down a similar amount, which is really a pretty big move. Not cheap. Very expensive, even here. >> drop for amd. Advanced micro down 6%. >> you know, it's been on this great run with intel and texas instruments and the rest of the chips, but this galleon fund,
“… or them. Yesterday the stock was also I believe down a similar amount, which is really a pretty big move. Not cheap. Very expensive, even here. >> drop for amd. Advanced micro down 6%. >> you know, it's been on this great run with intel and texas instruments and the rest of the chips, but this galleon fund, …”
Under Armour, Incorporated Class A (UA) Discussed on CNBC's Closing Bell
Under Armour, Incorporated Class A is in the news. Find out how this impacts UA trading on Ockham Research.
Commentaries. Jones of new york disappointed a bit. They didn't update their guidance at all today. UNDER ARMOUR didn't really say much about their shoe sales, that sales might be a little bit weak in that particular group. The defensive stocks, holding up pretty well today, all those classic names here. Back to you. >> as we know, the dollar has been leading these markets both up and down. >> thank you, scott.
“… p pretty well today, all those classic names here. Back to you. >> as we know, the dollar has been leading these markets both up and down. >> thank you, scott. …”
Under Armour, Incorporated Class A (UA) Discussed on CNBC's Mad Money
Under Armour, Incorporated Class A is in the news. Find out how this impacts UA trading on Ockham Research.
And that surfeit of product caused the stock to get it's down 12% just today. You had them both, deckers and UNDER ARMOUR, you did pretty the third quarter was better than we thought it would be but UNDER ARMOUR still got sometimes, as I like to say, it's better to be lucky than finally, lionel in california stumped the chump with neutral tanned elm i've got an answer. It's a hard company to it basically allows phone companies to more efficiently and cost effectively send traffic to other carriers.
“… better to be lucky than finally, lionel in california stumped the chump with neutral tanned elm i've got an answer. It's a hard company to it basically allows phone companies to more efficiently and cost effectively send traffic to other carriers. …”
Under Armour, Incorporated Class A (UA) Discussed on CNBC's Mad Money
Under Armour, Incorporated Class A is in the news. Find out how this impacts UA trading on Ockham Research.
What was one of those beyond thunderdome style steel cage matches you know I like. I said I thought deckers was a buy, which you probably know as this main brand uggs. And I said sell UNDER ARMOUR. Now both companies have reported, we can see whether or not these were the right calls. First, we were dead on with the stock's up 15% from where we recommended it at 84.55. Largely because deckers delivered a genuine up side surprise because of uggs, earning $2.59 per share. 34 cents more than the street's consensus estimate. And it raised guidance for the management was very bullish on the conference call. And I think deckers is still a great story. How about UNDER ARMOUR? First a clarification. When we did our comparative stock analysis two weeks ago, we said that in july UNDER ARMOUR's management had told us the by 8% in the second half. That's bad. Because what they actually said was that there would be an 8% deceleration in revenue growth from 16% down to 8%. And frankly, that's a big I want to correct that. Now, we were worried that UNDER ARMOUR was running out of growth in its main men's apparel business, especially in what's known as compression products. We were even more worried about its shaky footwear business. And we also didn't like the company's heavy reliance on dick's sporting goods and sports authority for as much as 31% of its sales. So were we right? UNDER ARMOUR reported an exceptional quarter today. I was sweating. I thought I might have hurt you. The earnings per share came in at 52 cents. That was eight cents higher than what the street was looking for. It was on stronger sales than again, I was mopping the old brow, thinking holy cow, this was a huge up side surprise. But you know what? We ended up being right. It wasn't enough to save the
“… ot these were the right calls. First, we were dead on with the stock's up 15% from where we recommended it at 84.55. Largely because deckers delivered a genuine up side surprise because of uggs, earning $2.59 per share. 34 cents more than the street's consensus estimate. And it raised guidance for the management was very bullish on the conference call. And I think deckers is still a great story. How about UNDER ARMOUR? First a clarification. When we did our comparative stock analysis two weeks ago, we said that in july UNDER ARMOUR's management had told us the by 8% in the second half. That's bad. Because what they actually said was that there would be an 8% deceleration in revenue growth from 16% down to 8%. And frankly, that's a big I want to correct that. Now, we were worried that UNDER ARMOUR was running out of growth in its main men's apparel business, especially in what's known as compression products. We were even more worried about its shaky footwear business. And we also didn't like the company's heavy reliance on dick's sporting goods and sports authority for as much as 31% of its sales. So were we right? UNDER ARMOUR reported an exceptional quarter today. I was sweating. I thought I might have hurt you. The earnings per share came in at 52 cents. That was eight cents higher than what the street was looking for. It was on stronger sales than again, I was mopping the old brow, thinking holy cow, this was a huge up side surprise. But you know what? We ended up being right. It wasn't enough to save the …”