Morningstar Rating

Stock Research and Analysis

by Paul Swinand

Bulls Say

Under Armour's strategy to reach digitally connected athletes should yield long-term competitive advantages, from consumer insights to marketing and new product development.
As the Under Armour brand grows internationally across sports and product categories, it will become harder to encroach on its brand positioning and reputation for innovation.
Under Armour gains credibility through creative marketing, sponsorships in pro and Olympic sports. International sponsorships continue to build. Read more 

Bears Say

The broader Under Armour becomes, the more it is dependent on fashion and non-performance apparel.
Under Armour does not own any proprietary fabric technologies or patents. Larger rivals can compete with equally innovative products while lower-priced imitation products could take market share from the core apparel line. Volatile raw materials, manufacturing costs, and currencies could have an adverse impact on operating margins.
Despite strides internationally and outside of high school team sports, Under Armour is still dependent on its home market and its core apparel offerings. Read more 

Management

President, chairman, and CEO Kevin Plank has been at the helm since founding the company in 1996. We believe corporate governance would be improved by splitting the roles of CEO and chairman, though we have not witnessed any examples of mismanagement.  Read more 

Profile

Under Armour markets athletic apparel, footwear, and gear and also owns a collection of assets in connected fitness. The firm made its name by developing performance apparel   Read more 

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