Under Armour’s Price-to-Earnings versus Peers’



Forward PE multiples

On January 10, Under Armour’s (UAA) 12-month forward PE ratio was 58.4x. It’s trading at a higher PE multiple than its peers.

Nike (NKE), Columbia Sportswear (COLM), Skechers (SKX), and Gap (GPS) have PE ratios of ~26.0x, 20.1x, 12.5x, and 9.6x, respectively.

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EPS projections for Under Armour

For 2018, Wall Street analysts expect Under Armour’s adjusted EPS to increase 15.8% YoY to $0.22. For 2018, Under Armour’s management forecast its adjusted EPS at $0.21–$0.22. Earlier, it guided for adjusted EPS of $0.19–$0.22. Increases in sales could offer support to the bottom line amid rising expenses.

For 2018, Under Armour’s management expects the year-end inventory to be down in a mid-single-digit rate. Also, driven by restructuring measures undertaken in 2017 and 2018, Under Armour projects annual savings of $200 million from 2019 to 2023.

For 2019, analysts expect the company’s adjusted EPS to rise 50% YoY to $0.33.

A look at EPS projections for peers

Analysts expect Nike’s adjusted EPS to rise 10.5% YoY to $2.64 in fiscal 2019. For fiscal 2020, its EPS are expected to increase by 18.6% YoY to $3.13.

For Columbia Sportswear, analysts’ adjusted EPS growth estimate for fiscal 2018 stands at 21.5% to $3.62. For fiscal 2019, its EPS are forecast to rise 12.4% to $4.07.

For fiscal 2018, Wall Street projects that Skechers’ adjusted EPS will increase 3.8% to $1.85. For fiscal 2019, its EPS are expected to rise 8.0% to $1.99.

For Gap’s fiscal 2018, analysts project EPS to be up 20.2% to $2.56, and for fiscal 2019, EPS is forecast to increase 3.5% to $2.65.


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