Universal (UVV) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 5.56%
• Average Volume (3M): 283.13K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.39
• Revenue Growth: 7.23%
• EPS Growth: -20.91%
• Country: US
• Employees: 10,800
• Sector: Utilities
• Sector Strength: 66
• Industry: Tobacco
• EPS (TTM): 0.37
• Shares Outstanding: 24,798,422
• 10 Day Avg. Volume: 344,222
• 30 Day Avg. Volume: 283,133
• PEG Ratio: 0.24
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.09
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 1.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $71.00 ▲(20.69%Upside)

Universal Corporation's overall stock score of 68 reflects strong financial performance with robust revenue growth and stable profit margins, supported by a balanced capital structure. The technical analysis suggests a bullish trend, though potential overbought conditions warrant caution. Valuation is fair with a compelling dividend yield. While recent earnings call indicates positive strategic moves, some operational challenges remain.

Universal Business Overview & Revenue Model

Company Description

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. The company was founded in 1886 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Universal Corporation makes money primarily through the procurement, processing, and sale of leaf tobacco. The company sources tobacco leaves from various growers, processes them, and then sells them to tobacco product manufacturers worldwide. Universal's revenue streams are predominantly derived from long-term supply agreements with major tobacco companies, ensuring a steady demand for their products. The company's earnings are influenced by factors such as global tobacco consumption trends, agricultural conditions affecting crop yields, and international trade policies. Additionally, Universal may engage in strategic partnerships and joint ventures to enhance its market presence and operational efficiency.

Universal Financial Statement Overview

Summary

Universal has demonstrated strong revenue growth and stable gross profit margins, reflecting effective revenue generation and cost control. The balance sheet is robust, with a healthy equity base, though rising debt levels should be monitored. Cash flow has shown improvement, but historical volatility suggests a need for continued focus on cash management strategies.

Income Statement

Universal has shown consistent revenue growth, increasing from $1.91 billion in 2020 to $2.95 billion in 2025. Gross profit margin has remained stable, indicating strong cost management. However, net profit margin has declined due to fluctuations in net income, suggesting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is manageable, with equity growing alongside debt, maintaining a balanced capital structure. The equity ratio indicates a solid base of stockholders' equity relative to assets. However, the steady increase in total debt warrants monitoring to prevent potential leverage risks.

Cash Flow

Cash flow management shows mixed results, with operating cash flow recovering to positive in 2025 after negative figures in 2024 and 2023. Free cash flow has improved significantly, indicating better cash management, although past volatility highlights potential risks in cash flow stability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.95B	2.75B	2.57B	2.10B	1.98B
Gross Profit	548.88M	536.10M	458.29M	408.93M	386.00M
EBITDA	301.05M	288.68M	250.07M	214.69M	188.42M
Net Income	95.05M	119.60M	124.05M	86.58M	87.41M
Balance Sheet
Total Assets	2.99B	2.94B	2.64B	2.59B	2.34B
Cash, Cash Equivalents and Short-Term Investments	260.12M	55.59M	64.69M	81.65M	197.22M
Total Debt	1.10B	1.06B	849.32M	741.11M	647.09M
Total Liabilities	1.49B	1.46B	1.20B	1.20B	993.50M
Stockholders Equity	1.46B	1.44B	1.40B	1.34B	1.31B
Cash Flow
Free Cash Flow	264.37M	-140.65M	-65.23M	-8.32M	154.26M
Operating Cash Flow	326.97M	-74.63M	-10.56M	44.88M	220.41M
Investing Cash Flow	-58.82M	-60.00M	-50.35M	-142.66M	-217.27M
Financing Cash Flow	-63.23M	125.67M	38.95M	-16.76M	91.39M

Universal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVV, the sentiment is Positive. The current price of 58.83 is below the 20-day moving average (MA) of 59.50, below the 50-day MA of 58.99, and above the 200-day MA of 53.75, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 34.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UVV.

Universal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MO	73 Outperform	$99.67B	9.90	-503.31%	6.89%	-1.03%	25.20%
PM	73 Outperform	$278.43B	36.76	-37142.11%	3.07%	6.83%	-4.85%
RLX	73 Outperform	$2.92B	33.10	4.07%	0.34%	75.72%	-6.45%
Sector *	69 Neutral	€25.64B	14.07	12.66%	4.85%	-10.92%	23.63%
UVV	68 Neutral	$1.46B	15.55	6.56%	5.56%	7.23%	-20.91%
TPB	68 Neutral	$1.32B	32.36	27.53%	0.41%	3.17%	-2.23%
BTI	64 Neutral	$103.46B	27.12	5.87%	6.24%	-2.51%	―

Universal Corporate Events

Universal Expands Board with New Independent Director

On May 20, 2025, Universal Corporation’s Board of Directors expanded to 10 members and appointed Fay Manolios as a new independent director, effective June 1, 2025. Ms. Manolios, with over 25 years of experience in strategy development and human resources, will serve on several committees, bringing valuable insights to the company. Concurrently, Michael T. Lawton announced his retirement from the Board after nine years of service, with his term ending at the 2025 Annual Meeting of Shareholders. The changes are expected to enhance Universal’s strategic initiatives and maintain its commitment to high standards benefiting all stakeholders.