Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-2.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-3.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt-44.7 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$451M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$1.0B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
B
Price-to-Book0.84x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
F
Free Cash Flow-$347M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings-$2M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Under Armour, Inc.
Under Armour, Inc., together with its subsidiaries, engages designs, developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications, as well as for casual use. In addition, the company provides accessories, which include gloves, bags, headwear, and socks. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through its own brand and factory house retail stores and e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.
Under Armour, Inc., together with its subsidiaries, engages designs, developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications, as well as for casual use. In addition, the company provides accessories, which include gloves, bags, headwear, and socks. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through its own brand and factory house retail stores and e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-43,390
-430,827
Reconciled Depreciation
26,088
27,290
Reconciled Cost Of Revenue
679,123
738,021
EBITDA
392
-47,510
EBIT
-25,696
-74,800
Net Interest Income
-8,740
-8,892
Normalized Income
-38,587
-371,593
Net Income From Continuing And Discontinued Operation
-43,390
-430,827
Total Expenses
1,196,857
1,402,561
Total Operating Income As Reported
-33,701
-149,780
Diluted Average Shares
425,983
424,845
Basic Average Shares
425,983
424,845
431,744
Diluted EPS
0
0
0
Basic EPS
0
0
0
Diluted NI Availto Com Stockholders
-43,390
-430,827
Net Income Common Stockholders
-43,390
-430,827
Net Income
-43,390
-430,827
Net Income Including Noncontrolling Interests
-43,390
-430,827
Net Income Continuous Operations
-43,390
-430,827
Earnings From Equity Interest Net Of Tax
-28
33
Tax Provision
866
270,604
Pretax Income
-42,496
-160,256
Other Income Expense
-8,060
-76,564
Other Non Operating Income Expenses
-55
-1,584
Special Income Charges
-8,005
-74,980
Restructuring And Mergern Acquisition
-7,895
74,980
Net Non Operating Interest Income Expense
-8,740
-8,892
Total Other Finance Cost
8,740
8,892
Operating Income
-25,696
-74,800
Operating Expense
517,734
664,540
Selling General And Administration
517,734
664,540
Gross Profit
492,038
589,740
Cost Of Revenue
679,123
738,021
Total Revenue
1,171,161
1,327,761
Operating Revenue
1,171,161
1,327,761
Balance Sheet
2026
2025
Ordinary Shares Number
426,217
425,772
Share Issued
426,217
425,772
Net Debt
881,276
525,083
Total Debt
1,939,633
1,688,520
Tangible Book Value
917,121
935,472
Invested Capital
2,604,804
2,424,790
Working Capital
1,041,897
899,564
Net Tangible Assets
917,121
935,472
Capital Lease Obligations
749,189
698,789
Common Stock Equity
1,414,360
1,435,059
Total Capitalization
2,004,969
1,825,108
Total Equity Gross Minority Interest
1,414,360
1,435,059
Stockholders Equity
1,414,360
1,435,059
Gains Losses Not Affecting Retained Earnings
-81,562
-94,129
Other Equity Adjustments
-81,562
-94,129
Retained Earnings
217,352
260,990
Additional Paid In Capital
1,278,429
1,268,058
Capital Stock
141
140
Common Stock
141
140
Total Liabilities Net Minority Interest
3,001,334
3,194,924
Total Non Current Liabilities Net Minority Interest
1,324,548
1,105,457
Other Non Current Liabilities
137,800
157,275
Long Term Debt And Capital Lease Obligation
1,186,748
948,182
Long Term Capital Lease Obligation
596,139
558,133
Long Term Debt
590,609
390,049
Current Liabilities
1,676,786
2,089,467
Other Current Liabilities
74,445
69,929
Current Debt And Capital Lease Obligation
752,885
740,338
Current Capital Lease Obligation
153,050
140,656
Current Debt
599,835
599,682
Other Current Borrowings
599,835
599,682
Pensionand Other Post Retirement Benefit Plans Current
85,982
Current Provisions
126,097
143,423
Payables And Accrued Expenses
637,377
1,135,777
Current Accrued Expenses
194,742
471,288
Payables
442,635
664,489
Total Tax Payable
22,558
Accounts Payable
420,077
664,489
Total Assets
4,415,694
4,629,983
Total Non Current Assets
1,697,011
1,640,952
Other Non Current Assets
118,915
113,265
Non Current Deferred Assets
52,282
68,356
Non Current Deferred Taxes Assets
52,282
68,356
Goodwill And Other Intangible Assets
497,239
499,587
Other Intangible Assets
4,471
4,425
Goodwill
492,768
495,162
Net PPE
1,028,575
959,744
Accumulated Depreciation
-926,022
-921,670
Gross PPE
1,954,597
1,881,414
Leases
430,441
403,003
Construction In Progress
18,750
15,170
Other Properties
443,135
391,006
Machinery Furniture Equipment
716,173
761,036
Buildings And Improvements
271,638
245,243
Land And Improvements
74,460
65,956
Current Assets
2,718,683
2,989,031
Other Current Assets
207,507
238,506
Restricted Cash
605,396
599,830
Inventory
914,751
1,074,527
Receivables
681,861
611,520
Accounts Receivable
681,861
611,520
Allowance For Doubtful Accounts Receivable
-5,018
-15,255
Gross Accounts Receivable
686,879
626,775
Cash Cash Equivalents And Short Term Investments
309,168
464,648
Cash And Cash Equivalents
309,168
464,648
Cash Flow
2026
2025
2024
Free Cash Flow
-347,274
261,940
Repurchase Of Capital Stock
0
0
Repayment Of Debt
-90,000
-200,000
Issuance Of Debt
290,000
0
0
Capital Expenditure
-15,107
-16,117
Income Tax Paid Supplemental Data
End Cash Position
312,061
468,393
Beginning Cash Position
468,393
399,771
Effect Of Exchange Rate Changes
-9,200
6,658
Changes In Cash
-147,132
61,964
Financing Cash Flow
200,142
-199,976
Cash Flow From Continuing Financing Activities
200,142
-199,976
Net Other Financing Charges
-391
-459
Proceeds From Stock Option Exercised
533
483
Net Common Stock Issuance
0
0
Common Stock Payments
0
0
Net Issuance Payments Of Debt
200,000
-200,000
Net Long Term Debt Issuance
200,000
-200,000
Long Term Debt Payments
-90,000
-200,000
Long Term Debt Issuance
290,000
0
0
Investing Cash Flow
-15,107
-16,117
Cash Flow From Continuing Investing Activities
-15,107
-16,117
Net Other Investing Changes
0
500
Net Business Purchase And Sale
0
-500
Purchase Of Business
0
Net PPE Purchase And Sale
-15,107
-16,117
Purchase Of PPE
-15,107
-16,117
Operating Cash Flow
-332,167
278,057
Cash Flow From Continuing Operating Activities
-332,167
278,057
Change In Working Capital
-360,169
371,313
Change In Other Working Capital
-40,784
8,703
Change In Other Current Liabilities
-17,366
8,455
Change In Other Current Assets
-62,751
-6,468
Change In Payables And Accrued Expense
-350,613
338,373
Change In Accrued Expense
-103,788
143,665
Change In Payable
-246,825
194,708
Change In Account Payable
-246,825
194,708
Change In Tax Payable
2,591
Change In Income Tax Payable
2,591
Change In Prepaid Assets
16,345
-22,639
Change In Inventory
160,937
-35,212
Change In Receivables
-65,937
80,101
Changes In Account Receivables
-65,937
80,101
Other Non Cash Items
6,468
71,297
Stock Based Compensation
9,839
10,773
Provisionand Write Offof Assets
-6,071
-5,424
Deferred Tax
25,958
237,862
Deferred Income Tax
25,958
237,862
Depreciation Amortization Depletion
26,088
27,290
Depreciation And Amortization
26,088
27,290
Amortization Cash Flow
400
Amortization Of Intangibles
400
Depreciation
30,800
Operating Gains Losses
9,110
-4,227
Net Foreign Currency Exchange Gain Loss
8,534
-4,227
Gain Loss On Sale Of PPE
576
0
Net Income From Continuing Operations
-43,390
-430,827
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.2B▼ $1.2B-0.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 46.7%▼ 42.0%-4.6pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -2.2%▲ -2.2%-0.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -5.7%▲ -3.7%+2.0pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.2B/qtr (≈$4.7B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.62x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$347M
vs Positive
Operating Cash Flow
-$332M
Latest quarter · Buffett's cash reality check
ROIC
-0.7%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
0.8x
Net Assets: $1.4B
Peers & Industry
No auto-detected peers for Apparel Manufacturing. You can manually compare UA against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
9.97%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-3.1%
Weak — poor returns on equity
Return on Assets (ROA)
-1.0%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$25M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+14.9% YoY
Debt is growing — management is leveraging up
Leadership Team
Kevin Plank
Founder, President, CEO & Director
Age 52
Pay: $1,864,002
Reza Taleghani
Executive VP & CFO
Age 51
Lance Allega
Senior Vice President of Investor Relations & Corporate Development
Top Institutional Holders
Institution
% Owned
Shares
BDT Capital Partners, LLC
32.04%
65,050,733
Fairfax Financial Holdings Ltd
10.84%
21,999,128
Blackrock Inc.
8.24%
16,725,844
Dimensional Fund Advisors LP
5.67%
11,518,415
Vanguard Capital Management LLC
3.83%
7,777,523
Vanguard Portfolio Management LLC
3.26%
6,616,460
State Street Corporation
2.27%
4,616,364
Neuberger Berman Group, LLC
1.97%
4,003,227
Risk Analysis
Beta (Market Risk)
1.69
High volatility — moves more than the market
Debt-to-Equity
1.37x
Moderate leverage
Current Ratio
1.62x
Adequate liquidity
52-Week Price Range
Low: $3.95Current: $5.87High: $7.91
Currently at 49% of 52-week range
Under Armour, Inc. (UA) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 42.0%. Operating margin: -2.2%. Net margin: -3.7%. Market cap: $2.5B. Sector: Consumer Cyclical. Industry: Apparel Manufacturing. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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