Universal (UVV) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: 6.26%
• Average Volume (3M): 198.80K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.21
• 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: 170,731
• 30 Day Avg. Volume: 198,801
• 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: 1.93
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 8.26
• 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: 68 Neutral
• Price Target: $58.00 ▲(10.25% Upside)

Universal Corporation's stock score reflects stable financial performance and reasonable valuation, supported by a strong dividend yield. However, technical indicators show a neutral trend, and mixed earnings call results highlight challenges such as foreign currency impacts and inventory write-downs.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, contributing to long-term financial stability.

Debt Reduction

Reducing net debt enhances financial flexibility and reduces interest expenses, supporting sustainable growth and operational resilience.

Management Strength

The appointment of an experienced HR leader strengthens management, potentially improving talent acquisition and organizational culture.

Negative Factors

Foreign Currency Impact

Adverse currency impacts can erode profitability and complicate financial planning, posing a risk to consistent earnings performance.

Inventory Write-downs

Increased inventory write-downs suggest potential inefficiencies in inventory management, affecting profitability and cash flow.

Ingredients Operations Challenges

Challenges in the Ingredients segment highlight issues in product strategy and cost management, impacting long-term segment profitability.

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 stable with consistent revenue growth and operational efficiency. The company maintains a balanced leverage position, but there are areas for improvement in net profitability and cash flow management.

Income Statement

Universal has demonstrated consistent revenue growth with a TTM revenue increase of 1.48% and a solid gross profit margin of 18.80%. However, the net profit margin is relatively low at 3.74%, indicating potential cost management issues. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.81, suggesting a balanced approach to leveraging. Return on equity is reasonable at 7.65%, indicating decent profitability. The equity ratio stands at 47.89%, showing a solid equity base relative to assets.

Cash Flow

Free cash flow has grown by 18.67% in the TTM, which is a positive sign. However, the operating cash flow to net income ratio is low at 0.24, suggesting potential cash flow management challenges. The free cash flow to net income ratio is healthy at 0.78, indicating good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.99B	2.95B	2.75B	2.57B	2.10B	1.98B
Gross Profit	564.02M	548.88M	536.10M	458.29M	408.93M	386.00M
EBITDA	308.29M	301.05M	288.68M	248.57M	222.53M	195.41M
Net Income	111.64M	95.05M	119.60M	124.05M	86.58M	87.41M
Balance Sheet
Total Assets	3.07B	2.99B	2.94B	2.64B	2.59B	2.34B
Cash, Cash Equivalents and Short-Term Investments	88.65M	260.12M	55.59M	64.69M	81.65M	197.22M
Total Debt	1.19B	1.10B	1.06B	849.32M	741.11M	647.09M
Total Liabilities	1.57B	1.49B	1.46B	1.20B	1.20B	993.50M
Stockholders Equity	1.47B	1.46B	1.44B	1.40B	1.34B	1.31B
Cash Flow
Free Cash Flow	157.13M	264.37M	-140.65M	-65.23M	-8.32M	154.26M
Operating Cash Flow	202.03M	326.97M	-74.63M	-10.56M	44.88M	220.41M
Investing Cash Flow	-41.65M	-58.82M	-60.00M	-50.35M	-142.66M	-217.27M
Financing Cash Flow	-151.96M	-63.23M	125.67M	38.95M	-16.76M	91.39M

Universal Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 52.61
• 50DMA: Negative
• 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 Neutral. The current price of 52.61 is below the 20-day moving average (MA) of 52.82, below the 50-day MA of 53.07, and below the 200-day MA of 54.10, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 64.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UVV.

Universal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	76 Outperform	$3.02B	28.60	4.71%	0.31%	51.49%	21.43%
UVV	68 Neutral	$1.32B	11.89	7.72%	6.26%	3.01%	-7.14%
TPB	67 Neutral	$1.89B	34.88	22.54%	0.29%	6.71%	8.16%
MO	64 Neutral	$99.28B	11.28	―	7.00%	-0.96%	-11.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	62 Neutral	$243.07B	28.28	―	3.57%	7.72%	-12.45%
BTI	59 Neutral	$126.65B	32.17	5.97%	5.14%	0.48%	―

Universal Corporate Events

Universal Corp’s Earnings Call: Mixed Results and Future Outlook

The recent earnings call for Universal Corporation painted a mixed picture, reflecting both achievements and challenges. While the company celebrated significant revenue growth and successful debt reduction, it also faced hurdles such as unfavorable foreign currency impacts, increased inventory write-downs, and difficulties within the Ingredients Operations segment, which tempered the overall positive developments.

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.