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Too Expensive Despite A Great Deal
Stocks of Under Armour (UA) scarcely moved after the innovative outfits, footwear and accessories firm announced its first buy ever, making Woolrich Arctic Parka Black an the front into technology, combined with good performance sportswear.
Despite the nice deal, shares are valued as well rich at the moment to jump on board.
Under Armour announced it has entered into a conclusive agreement to acquire MapMyFitness. The company pays off $150 million for the company, financed with borrowings under the current revolving credit facility, cash taking place, or a combination of the two.
MapMyFitness Barbour Women Jacket is the fitness technology company guiding the largest digital fitness areas. The deal gives Under Armour a decent foothold to be at the forefront of sports and technology.
Atop running websites, the company also offers mobile applications under the names of "MapMyRun" and "MapMyRide".
CEO Kevin Program commented on the rationale regarding the deal, "This partnership is about Under Armour enhancing our electric expertise to drive the future of performance innovation for the global sportsperson community. We will build on the community of over 20 million new users that MapMyFitness has cultivated inside connected fitness space, and also together we will serve as a place to go for the measurement and statistics needs of all athletes.In .
The deal is expected to close before the end of the year, and the 2013 and preliminary 2014 mindset remain unchanged.
Third Fraction Results
About three weeks ago, Under Armour released it's third quarter results. 3 rd quarter revenues were up by 26% to $723 million. Total debt appears at $54 million, for a web cash position of $132 , 000, 000.
A little worrying was the actual built up in inventories which in turn rose by 59% compared to a yr earlier, thereby by far outpacing income growth. Total inventories destroyed $497 million at the end of the third district.
Revenues for the first eight months of the year totaled $1.Sixty five billion, up 24% on the yr before. Net earnings rose by 25% to $98 million.
12 months revenues are seen at $2.Twenty-six billion as earnings may possibly come in around $160 million.
Trading around $83 per share, the market Woolrich Jackets Women Uk values Under Armour with $8.8 billion. This valuations operating assets at $8.8 billion, valuing operations from 3.8 times anticipated annual revenues and 52 times annual earnings. Gives you traded around $30 per share in 2007 to fall to help lows of $10 in 2009. Ever Woolrich Woolen Mills Anorak since, shares have gradually increased to highs around $85 at this time.
Between 2009 and The coming year, Under Armour has increased it's annual revenues by a cumulative 115% to $1.83 billion. Keep in mind that MapMyFitness has only been founded within 2007 and focuses on the appearance of applications which allow athletes for you to record and share their own workouts.
The company has Something like 20 million registered users across the world which 9 million are participating in a monthly basis. By emphasizing technology, Under Armour can be copying Nike's (NKE) very successful strategy to put together sports with technology. Shoppers have already embraced the combination regarding fitness and technology, plus the market is set for further strong growth.
The deal once more underlines Below Armour's innovative strategy, as Within Armour's apparel, footwear and add-ons are already specialized, innovative and focused on high performing players. On top of the innovation through MapMyFitness, Beneath Armour has many more chances to expand into different areas and abroad.
Yet soon after shares have witnessed pretty much 70% returns so far this year, the marketplace is valuing Under Battle suits a bit too rich to our taste. The nearly $9 million valuation values the company in nearly 4 times sales and over 50 times GAAP earnings.
Since i like the company, the valuation has run out of line. I remain on the sidelines with a slightly pessimistic stance.
Source: Under Shield Too Expensive Despite A Great Deal
Disclosure: We've no positions in any stocks and options mentioned, and no plans to trigger any positions within the next 72 hours. I wrote this article me, and it expresses my own viewpoints. I am not receiving compensation for doing this (other than from Seeking Alpha). I have no business relationship along with any company whose stock is actually mentioned in this article. (More.)
