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Security Analysis: Under Armour Performance Apparel By: Edel Farah Andrew Johnson Aime Kabongo Scott McDaniels Christian Munsch Gregory Simons Justin Thompson Theme Under Armour was founded in 1996 by a former University of Maryland football player, Kevin Plank. His designs revolve around keeping athletes dry as they practice and perform. The material is intended to reduce the amount of sweat. Today, Under Armour is one of the fastest growing athletic apparel companies in the United States. This same material has become a necessity for many athletes, while promoting many of their competitors to produce their own versions. Since their introduction, Under Armour has widened their product line. They now offer three different lines of shirts; HeatGear: used for more extreme environments, ColdGear: used for insulation in colder environments, and AllSeasonGear for the in between times. Under Armour is also available in three different fits; compression, fitted, and loose fitting. Under Armour now offers baseball, softball, lacrosse, soccer, and football cleats. Additionally, Under Armour manufactures running and training shoes along with sandals to wear before and after the game. In addition to shoes, Under Armour now manufactures gloves for baseball, football, golf, and running. Under Armour is also branching into other lines such as bags, socks, hats, and sunglasses. While some of Under Armour’s competitors are much larger, they continue to grow, despite the current recession. We believe that Under Armour’s abilities to grow and expand will lead to a much higher stock price in the future. This report will explain our reasoning in our valuation of Under Armour. Business Analysis Company Profile In the beginning, designs were simple t-shirts made with high tech fabrics, which were believed to enhance the performance of athletes if they were able to stay comfortable and dry. Under Armour’s first big break was when Geor