Is Under Armour Stock (UAA) Halal? A Complete Analysis

The Short Answer

Under Armour stock (UAA) is generally considered halal by most Islamic scholars and Sharia screening criteria — the athletic apparel business is permissible, with the debt ratio as the primary consideration to verify.

Designing and selling athletic apparel and footwear is a permissible activity, and Under Armour earns product revenue rather than interest. The main thing to check is the debt-to-market-cap ratio, which can run higher when the share price is depressed during the company's turnaround.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)

Under Armour's Business Activity

Under Armour is a performance apparel and footwear brand. Its business includes:

• Apparel: Performance and athletic clothing for men, women, and youth
• Footwear: Running, training, and lifestyle shoes
• Accessories: Bags, headwear, and related products

Designing and selling athletic apparel and footwear is permissible at the activity level — it is an ordinary consumer-products business.

Concerns to Be Aware Of

1. Debt Ratio — The Primary Consideration

Under Armour carries interest-bearing senior notes and a revolving credit facility. Confirm the debt-to-market-cap ratio against the 33% threshold at the time of investment — the ratio can rise when the share price is depressed during the turnaround, so this warrants particular attention.

2. Conventional Debt Instruments

Senior notes and revolving credit are conventional, interest-bearing instruments. Investors who object to such financing should weigh this even where the debt ratio passes the 33% screen.

3. Interest Income on Cash

Under Armour holds cash balances that generate interest income. Verify the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of returns.

Financial Ratios (2025)

Based on Under Armour's most recent financial statements:

• Total Debt / Market Cap: Verify carefully against 33% — can run higher when the stock is depressed ⚠️
• Interest Income / Revenue: Verify against the 5% threshold and purify ⚠️
• Haram Revenue: Negligible (athletic apparel) ✅
• Business Activity: Permissible consumer products ✅

Verdict from Major Screening Agencies

Under Armour stock is generally screened as compliant (halal) with purification, subject to the debt ratio by:

• Zoya App — Generally compliant, verify the debt ratio ⚠️
• MSCI Islamic criteria — Generally included subject to ratios ✅
• Most major Sharia advisory boards — Compliant with purification, verify leverage ✅

Bottom Line

Under Armour (UAA) is generally halal with purification for Muslim investors, subject to verifying the debt ratio. The core business — designing and selling athletic apparel and footwear — is clearly permissible, and the company earns product revenue rather than interest. The key screening step is to confirm the debt-to-market-cap ratio against the 33% threshold, particularly when the share price is low, and to purify the small portion of returns attributable to interest income.

For Muslim investors seeking athletic apparel exposure, Under Armour sits alongside other names worth screening like Nike (NKE), Skechers (SKX), and Lululemon (LULU).