If we go by UAA's numbers alone, some of it looks really appealing: a P/E of 8.85 with a forward P/E of 13.84, ROE% is at 21.24, and they even pay a tiny dividend. On the other hand, its cash flow has been eaten into in the last fiscal year, beginning with over a billion and ending with almost 300 million less.
Apparel brands are always unpredictable, as they seem predicated on trends, and nobody knows what the next trendy brand is. Excluding the COVID era, when everything was going up, UAA seemed to have hit its peak in 2019 when it was trading at almost $27 (it's at $7.61 at the time I'm writing this). It was even considered a serious challenger to Nike. Then, like so many other apparel brands, it just…faded from popularity.
Can UAA return to its heights, or will it be cast off like every other brand that can't seem to cut into Nike's market share for very long?
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