Universal (UVV) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 6.26%
• Average Volume (3M): 201.44K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.24
• Revenue Growth: 3.01%
• EPS Growth: -7.14%
• Country: US
• Employees: 10,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 1.36
• Shares Outstanding: 24,921,156
• 10 Day Avg. Volume: 267,604
• 30 Day Avg. Volume: 201,439
• PEG Ratio: -0.71
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 5.29
• Enterprise Value/Market Cap: 1.92
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 4.49
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $2.96B

• Rating: 64 Neutral
• Price Target: $57.00 ▲(6.84% Upside)

Universal's overall stock score reflects a mixed financial performance with stable profitability but declining revenue growth and increased leverage. The stock's attractive valuation and high dividend yield are significant positives, while technical indicators suggest potential downward pressure. The earnings call highlights both growth and operational challenges.

Universal Business Overview & Revenue Model

Company Description

Universal Corporation (UVV) is a leading global supplier of leaf tobacco and a provider of related services. The company operates primarily in the tobacco sector, sourcing, processing, and selling tobacco to manufacturers of consumer products. In addition to its core business in tobacco, Universal is involved in the development of innovative products and solutions that support the tobacco industry, including risk-reduction products and agricultural technologies.

How the Company Makes Money

Universal Corporation generates revenue primarily through the sale of processed leaf tobacco to cigarette manufacturers and other tobacco product producers. The company has established long-term relationships with major tobacco companies, which provides a stable revenue stream. Its revenue model is based on the procurement, processing, and distribution of tobacco, which involves sourcing tobacco from farmers, processing it in facilities around the world, and selling it to clients in various markets. Additionally, Universal engages in value-added services, such as risk management and supply chain solutions, which further enhance its profitability. Strategic partnerships with growers and industry stakeholders also contribute to its earnings by ensuring a reliable supply of quality tobacco and enabling the company to adapt to changing market demands.

Universal Financial Statement Overview

Summary

Universal's financial performance is mixed. Stable profitability margins and decent returns on equity are positives, but declining revenue growth and increased leverage are concerning. The significant drop in free cash flow growth highlights potential liquidity challenges.

Income Statement

Universal's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate by 11.2%, which is concerning. However, the company maintains a stable gross profit margin of around 19% and a net profit margin of 3.5%. The EBIT and EBITDA margins are relatively healthy at 8.5% and 10.5%, respectively, indicating operational efficiency. Despite the revenue decline, profitability margins remain stable, which is a positive sign.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 0.87 in the TTM period, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity remains reasonable at 7.1%, suggesting that the company is generating decent returns on shareholders' investments. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant drop in free cash flow growth by nearly 50% in the TTM period. The operating cash flow to net income ratio is low at 0.20, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively strong at 0.72, suggesting that the company is still able to generate cash relative to its net income despite the decline in growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.94B	2.95B	2.75B	2.57B	2.10B	1.98B
Gross Profit	567.33M	548.88M	536.10M	458.29M	408.93M	386.00M
EBITDA	309.96M	301.05M	288.68M	248.57M	222.53M	195.41M
Net Income	103.41M	95.05M	119.60M	124.05M	86.58M	87.41M
Balance Sheet
Total Assets	3.19B	2.99B	2.94B	2.64B	2.59B	2.34B
Cash, Cash Equivalents and Short-Term Investments	178.44M	260.12M	55.59M	64.69M	81.65M	197.22M
Total Debt	1.28B	1.10B	1.06B	849.32M	741.11M	647.09M
Total Liabilities	1.69B	1.49B	1.46B	1.20B	1.20B	993.50M
Stockholders Equity	1.46B	1.46B	1.44B	1.40B	1.34B	1.31B
Cash Flow
Free Cash Flow	132.41M	264.37M	-140.65M	-65.23M	-8.32M	154.26M
Operating Cash Flow	184.31M	326.97M	-74.63M	-10.56M	44.88M	220.41M
Investing Cash Flow	-48.85M	-58.82M	-60.00M	-50.35M	-142.66M	-217.27M
Financing Cash Flow	-59.37M	-63.23M	125.67M	38.95M	-16.76M	91.39M

Universal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 53.35 is above the 20-day moving average (MA) of 52.55, below the 50-day MA of 53.59, and below the 200-day MA of 53.97, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 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
TPB	67 Neutral	$1.96B	36.27	22.54%	0.29%	6.71%	8.16%
RLX	67 Neutral	$2.83B	28.22	4.56%	0.34%	61.64%	16.76%
MO	66 Neutral	$97.41B	11.07	―	7.05%	-0.96%	-11.42%
UVV	64 Neutral	$1.33B	12.01	7.72%	6.26%	3.01%	-7.14%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	62 Neutral	$238.77B	27.78	―	3.52%	7.72%	-12.45%
BTI	52 Neutral	$118.35B	30.21	5.97%	5.36%	0.48%	―

Universal Corporate Events

Universal Corporation Reports Strong Q3 2025 Earnings

Universal Corporation is a global business-to-business agri-products supplier, primarily known as a leading global leaf tobacco supplier, and also provides plant-based ingredients to food and beverage markets. In its latest earnings report for the quarter ended September 30, 2025, Universal Corporation reported a rise in sales and operating revenues to $754.2 million, up from $710.8 million in the same quarter of the previous year. The company also saw an increase in net income attributable to Universal Corporation, which reached $34.2 million compared to $25.9 million in the prior year.

Universal Appoints Gregory Trojan to Board of Directors

On November 5, 2025, Universal Corporation’s Board of Directors expanded to 10 members with the appointment of Gregory A. Trojan as an independent director, effective immediately. Mr. Trojan, with extensive leadership experience in the restaurant, retail, and consumer products sectors, will join several key committees. Concurrently, Universal reported its financial results for the first half and second quarter of fiscal year 2026, highlighting a 3% revenue increase for the first half and a 6% increase for the second quarter. The Tobacco Operations segment showed strong performance despite market challenges, while the Ingredients Operations segment continued to grow, driven by new product demand and strategic investments.

The most recent analyst rating on (UVV) stock is a Hold with a $57.00 price target. To see the full list of analyst forecasts on Universal stock, see the UVV Stock Forecast page.