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Universal
(NYSE:UVV)
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Rating:51Neutral
Price Target:
$52.00
▼(-3.26% Downside)
Action:Reiterated
Date:08/06/26
UVV scores in the low-50s primarily due to weakening profitability and deteriorating returns (very low TTM net margin and ROE) despite a recent rebound in free cash flow. Technicals are neutral with slight stabilization signs, while valuation is held back by a high P/E even though the dividend yield is attractive. The earnings call added pressure given the impairment, inventory write-downs, and lack of quantitative guidance.
Positive Factors
Strong liquidity and headroom
A >$1.2B liquidity buffer combined with modest net debt gives Universal durable financial flexibility to fund seasonal working capital swings in agriculture, absorb crop timing shocks, and pursue disciplined investments or buybacks without forcing distress selling or near-term capital raises.
Negative Factors
Compressed profitability and weakened returns
Sharp margin compression and ROE deterioration signal less durable earnings power. Lower margins reduce capacity to fund capital needs, weather cyclical crop or pricing shocks, and maintain dividend coverage if weak trends persist, increasing long-term payout and reinvestment risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and headroom
A >$1.2B liquidity buffer combined with modest net debt gives Universal durable financial flexibility to fund seasonal working capital swings in agriculture, absorb crop timing shocks, and pursue disciplined investments or buybacks without forcing distress selling or near-term capital raises.
Read all positive factors
Universal Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures operating profit for each segment to show which parts of the business actually generate earnings after costs; exposes margin differences, operational efficiency, and segments that are subsidizing others—critical for forecasting earnings, dividend capacity, and where cost cuts or investment can improve returns.
Measures operating profit for each segment to show which parts of the business actually generate earnings after costs; exposes margin differences, operational efficiency, and segments that are subsidizing others—critical for forecasting earnings, dividend capacity, and where cost cuts or investment can improve returns.
Data provided by:
The Fly
The FlyUniversal (UVV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend Yield6.24%
Average Volume (3M)249.27K
Price to Earnings (P/E)40.5
Beta (1Y)0.20
Revenue Growth-0.77%
EPS Growth-65.72%
CountryUS
Employees25,000
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)0.76
Shares Outstanding24,925,697
10 Day Avg. Volume235,801
30 Day Avg. Volume249,273
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)0.93
Price to Sales (P/S)0.45
P/FCF Ratio16.45
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.4
Revenue Forecast (FY)$2.94B
Universal Business Overview & Revenue Model
Company Description
Universal Corporation is a global agricultural enterprise specializing in the processing and supply of leaf tobacco and a diverse range of plant-based ingredients. Its activities are organized into two primary segments: Tobacco Operations and Ingr...
How the Company Makes Money
UVV generates revenue mainly by selling physical agricultural products and related services under supply contracts with large manufacturers.
1) Tobacco Operations (core revenue stream):
- Product sales: UVV buys leaf tobacco from growers and thir...
Universal Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call was mixed: operational resilience in core tobacco and progress in the ingredients platform (including full-year ingredients revenue growth, strong liquidity, sustainability recognition, and continued dividend commitment) was offset by material one-time and operating challenges—most notably a $41 million goodwill impairment at Shanks, $43 million of tobacco inventory write-downs, and a Q4 operating and net loss. Management outlined corrective actions (leadership realignment at Shanks, focus on commercial execution and financial discipline) and expressed confidence in positioning for fiscal 2027.Positive Updates
Q4 Consolidated Revenue Growth
Consolidated revenue for Q4 was $715 million, up 2% year-over-year, demonstrating near-term top-line resilience despite a challenging prior-year comparison; full-year consolidated revenue was $2.9 billion (slightly down vs. an exceptional prior year).
Negative Updates
Q4 Operating Loss and Swing to Net Loss
Operating loss for Q4 was $15 million versus operating income of $43 million in the same quarter last year (a swing of $58 million). Net loss attributable to Universal for Q4 was $43 million versus net income of $9 million in the year-ago quarter. Full-year net income fell to $33 million from $95 million in FY25 (down $62 million, ~65%).
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 Consolidated Revenue Growth
Consolidated revenue for Q4 was $715 million, up 2% year-over-year, demonstrating near-term top-line resilience despite a challenging prior-year comparison; full-year consolidated revenue was $2.9 billion (slightly down vs. an exceptional prior year).
Read all positive updates
Company Guidance
Management offered primarily qualitative FY27 guidance but did provide several specific metrics and targets: they expect uncommitted inventory to be within 10–20% during FY27 (it was ~27% as of 3/31/26) and will focus on maximizing/optimizing tobacco and growing ingredients while improving Shanks execution after a $41M non‑cash goodwill impairment; no formal revenue or EPS guidance was given, but they reiterated FY26 results for context — consolidated Q4 revenue $715M (+2% YoY) and FY revenue $2.9B (slight decline), Q4 operating loss $15M (vs. operating income $43M a year ago) and FY operating income $169M (down $64M), Q4 net loss attributable $43M (vs. net income $9M) and FY net income $33M (vs. $95M); tobacco segment Q4 revenue $632M (+3%) and FY revenue $2.6B with segment operating income Q4 $27M (vs. $46M) and FY $212M (vs. $240M), and tobacco inventory write‑downs of $43M in FY26 (vs. $19M in FY25; 5‑yr avg $14M); ingredients segment Q4 revenue $83M (vs. $90M) and FY revenue $348M (+3%) with segment operating income Q4 $2M (vs. $4M) and FY $3M (vs. $12M); balance sheet items cited include net debt $845M as of 3/31/26 (vs. $817M a year earlier) and total liquidity >$1.2B, and they reiterated their capital allocation priorities and the 56th consecutive annual dividend increase (reported payout >100% this year; 5‑yr adjusted payout <75%); a more detailed update was promised on the FY27 Q1 call.Universal Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.85B | 2.92B | 2.95B | 2.75B | 2.57B | 2.10B |
| Gross Profit | 480.04M | 512.02M | 548.88M | 536.10M | 458.29M | 408.93M |
| EBITDA | 196.06M | 230.13M | 301.05M | 288.68M | 248.57M | 222.53M |
| Net Income | 19.12M | 32.64M | 95.05M | 119.60M | 124.05M | 86.58M |
Balance Sheet | ||||||
| Total Assets | 3.04B | 2.77B | 2.99B | 2.94B | 2.64B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 173.59M | 62.18M | 260.12M | 55.59M | 64.69M | 81.65M |
| Total Debt | 1.22B | 939.82M | 1.10B | 1.06B | 849.32M | 741.11M |
| Total Liabilities | 1.61B | 1.31B | 1.49B | 1.46B | 1.20B | 1.20B |
| Stockholders Equity | 1.39B | 1.42B | 1.46B | 1.44B | 1.40B | 1.34B |
Cash Flow | ||||||
| Free Cash Flow | 164.38M | 80.27M | 264.37M | -140.65M | -65.23M | -8.32M |
| Operating Cash Flow | 217.08M | 129.10M | 326.97M | -74.63M | -10.56M | 44.88M |
| Investing Cash Flow | -46.69M | -42.96M | -58.82M | -60.00M | -50.35M | -142.66M |
| Financing Cash Flow | -174.67M | -284.34M | -63.23M | 125.67M | 38.95M | -16.76M |
Universal Technical Analysis
Negative
53.75
Price Trends
52.17
Negative
52.06
Negative
51.73
Negative
Market Momentum
-0.07
Positive
41.12
Neutral
7.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVV, the sentiment is Negative. The current price of 53.75 is above the 20-day moving average (MA) of 52.62, above the 50-day MA of 52.17, and above the 200-day MA of 51.73, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UVV.
Universal Risk Analysis
Universal disclosed 24 risk factors in its most recent earnings report. Universal reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.46B | 17.03 | 6.14% | 4.93% | 66.52% | 56.14% | |
72 Outperform | $297.41B | 27.42 | -112.19% | 3.05% | 9.12% | 32.00% | |
69 Neutral | $132.83B | 15.65 | 13.38% | 5.32% | 4.47% | 117.22% | |
63 Neutral | $114.09B | 14.41 | -265.17% | 5.81% | 1.01% | -8.27% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $1.45B | 24.79 | 11.93% | 0.41% | 16.10% | 26.07% | |
51 Neutral | $1.31B | 40.53 | 1.33% | 6.12% | -0.77% | -65.72% |
* Consumer Defensive Sector Average
UVV
Universal
50.84
0.63
1.25%
MO
Altria Group
68.35
6.85
11.14%
BTI
British American Tobacco
59.33
4.20
7.62%
PM
Philip Morris
189.57
25.20
15.33%
TPB
Turning Point Brands
86.86
-10.58
-10.86%
RLX
RLX Technology
2.01
-0.12
-5.63%
Universal Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Universal Reports Weak Q1 Results Amid Tobacco Oversupply
Negative
Aug 5, 2026
At its 2026 Annual Meeting of Shareholders held on August 4, 2026, Universal’s investors elected Arthur J. Schick Jr., Gregory A. Trojan, and Jaqueline T. Williams to three-year board terms, endorsed executive compensation in a non-binding a...
Business Operations and StrategyExecutive/Board Changes
Universal Announces Leadership Transition in Ingredients Segment
Neutral
Aug 4, 2026
On July 29, 2026, Universal Corporation announced that J. Patrick O’Keefe intends to retire from his roles as Vice President, Ingredients at the parent company and Senior Vice President of Universal Ingredients, Inc. The company will engage ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.