Universal Corporation (UVV)
NYSE:UVV
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Universal
(NYSE:UVV)
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Rating:53Neutral
Price Target:
$52.00
â–¼(-4.17% Downside)
Action:Reiterated
Date:05/29/26
UVV scores in the low-to-mid range primarily due to uneven cash generation and a weaker recent earnings backdrop highlighted on the latest call (losses, write-downs, and impairment) alongside limited quantitative forward guidance. Technicals also remain soft with the stock below key moving averages. The high dividend yield and manageable leverage provide partial support, but the elevated P/E and earnings pressure temper the overall rating.
Positive Factors
Tobacco segment scale & resilience
Universal's core tobacco operations generate consistent top-line scale and operating earnings across geographies. The company's integrated sourcing, processing and logistics create durable supply-chain advantage and pricing/quality leverage with major manufacturers, underpinning stable cash generation through market cycles.
Negative Factors
Inventory write‑downs
Large and rising inventory write‑downs indicate structural mismatches between procurement and demand or quality issues in specific leaf styles. Recurring write‑downs compress margins, increase earnings volatility, and signal the need for better commercial alignment or pricing discipline to prevent future erosion of operating profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Tobacco segment scale & resilience
Universal's core tobacco operations generate consistent top-line scale and operating earnings across geographies. The company's integrated sourcing, processing and logistics create durable supply-chain advantage and pricing/quality leverage with major manufacturers, underpinning stable cash generation through market cycles.
Read all positive factors
Universal Key Performance Indicators (KPIs)
Universal (UVV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend Yield6.15%
Average Volume (3M)260.06K
Price to Earnings (P/E)40.0
Beta (1Y)0.21
Revenue Growth-0.77%
EPS Growth-65.72%
CountryUS
Employees10,800
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)1.30
Shares Outstanding24,923,496
10 Day Avg. Volume264,990
30 Day Avg. Volume260,059
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.93
Price to Sales (P/S)0.45
P/FCF Ratio16.45
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit4.29
Enterprise Value/Ebitda9.37
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
Universal makes money primarily by selling processed leaf tobacco and providing related supply-chain services to tobacco product manufacturers. In its Tobacco Operations segment, Universal contracts with or purchases from growers, then performs se...
Universal Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 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
58
Neutral
Balance Sheet
66
Positive
Cash Flow
50
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.92B | 2.95B | 2.75B | 2.57B | 2.10B |
| Gross Profit | 512.02M | 548.88M | 536.10M | 458.29M | 408.93M |
| EBITDA | 230.13M | 301.05M | 288.68M | 248.57M | 222.53M |
| Net Income | 32.64M | 95.05M | 119.60M | 124.05M | 86.58M |
Balance Sheet | |||||
| Total Assets | 2.77B | 2.99B | 2.94B | 2.64B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 62.18M | 260.12M | 55.59M | 64.69M | 81.65M |
| Total Debt | 939.82M | 1.10B | 1.06B | 849.32M | 741.11M |
| Total Liabilities | 1.31B | 1.49B | 1.46B | 1.20B | 1.20B |
| Stockholders Equity | 1.42B | 1.46B | 1.44B | 1.40B | 1.34B |
Cash Flow | |||||
| Free Cash Flow | 80.27M | 264.37M | -140.65M | -65.23M | -8.32M |
| Operating Cash Flow | 129.10M | 326.97M | -74.63M | -10.56M | 44.88M |
| Investing Cash Flow | -42.96M | -58.82M | -60.00M | -50.35M | -142.66M |
| Financing Cash Flow | -284.34M | -63.23M | 125.67M | 38.95M | -16.76M |
Universal Technical Analysis
Negative
54.26
Price Trends
53.34
Negative
53.03
Negative
52.50
Negative
Market Momentum
-0.14
Positive
43.58
Neutral
30.68
Neutral
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 54.26 is above the 20-day moving average (MA) of 53.47, above the 50-day MA of 53.34, and above the 200-day MA of 52.50, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.68 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $278.05B | 25.13 | -105.29% | 3.59% | 8.48% | 45.92% | |
72 Outperform | $2.24B | 15.69 | 6.14% | 0.35% | 66.52% | 56.14% | |
71 Outperform | $115.42B | 14.36 | -255.35% | 7.02% | 0.75% | -19.96% | |
69 Neutral | $124.01B | 12.37 | 16.33% | 5.22% | 2.16% | 171.90% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.59B | 28.43 | 17.29% | 0.28% | 16.10% | 26.07% | |
53 Neutral | $1.30B | 40.04 | 2.24% | 6.15% | -0.77% | -65.72% |
* Consumer Defensive Sector Average
UVV
Universal
52.16
-3.88
-6.92%
MO
Altria Group
69.12
12.47
22.02%
BTI
British American Tobacco
58.91
12.96
28.20%
PM
Philip Morris
178.40
-0.22
-0.12%
TPB
Turning Point Brands
82.02
7.28
9.74%
RLX
RLX Technology
1.84
-0.18
-8.68%
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.