Universal (UVV) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 6.08%
• Average Volume (3M): 310.20K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.38
• Revenue Growth: 4.11%
• EPS Growth: -15.50%
• Country: US
• Employees: 10,800
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Tobacco
• EPS (TTM): 0.38
• Shares Outstanding: 24,886,204
• 10 Day Avg. Volume: 277,112
• 30 Day Avg. Volume: 310,203
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 8.95
• 1Y Price Target: $57.00
• Price Target Upside: 6.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $57.00 ▲(6.64% Upside)

Universal Corporation's stock score is driven by strong financial performance, particularly in revenue growth and cost management. The valuation is attractive with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, which could impact short-term performance. The earnings call provided a balanced view with both positive and negative aspects, while corporate events are seen as slightly positive.

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 revenue growth and stable gross margins are positive, but declining net profit margins and rising debt levels present risks. Cash flow improvement is noted, though past volatility is concerning.

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: Negative
• Last Price: 53.45
• 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 Negative. The current price of 53.45 is below the 20-day moving average (MA) of 54.05, below the 50-day MA of 56.32, and below the 200-day MA of 53.89, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UVV.

Universal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	73 Outperform	$2.60B	29.38	4.07%	0.38%	75.72%	-6.45%
MO	71 Outperform	$110.12B	12.67	-503.31%	6.20%	-0.18%	-10.69%
TPB	70 Neutral	$1.78B	41.21	26.05%	0.29%	4.44%	-5.94%
PM	69 Neutral	$257.26B	31.36	-37142.11%	3.25%	7.44%	-6.72%
UVV	69 Neutral	$1.33B	12.99	7.20%	6.08%	4.11%	-15.50%
Sector *	68 Neutral	¥221.32B	22.43	8.23%	2.16%	4.86%	-0.08%
BTI	62 Neutral	$125.52B	31.78	5.97%	5.22%	0.48%	―

Universal Corporate Events

Universal Corporation Holds 2025 Annual Shareholders Meeting

At the 2025 Annual Meeting of Shareholders held on August 5, 2025, Universal Corporation’s shareholders elected directors for three-year terms, approved executive compensation, and ratified Ernst & Young LLP as the accounting firm for the fiscal year ending March 31, 2026. Additionally, Thomas H. Johnson was appointed as Lead Independent Director. The company reported a revenue of $594 million for the first quarter of fiscal year 2026, with an operating income increase driven by a favorable product mix in its Tobacco Operations segment. Despite a slight revenue decrease, the company saw improved performance in its ingredients segment, focusing on growing this area and optimizing its tobacco business.

Universal Announces CFO Retirement and Succession Plan

On July 9, 2025, Universal Corporation announced the upcoming retirement of Johan C. Kroner, the Senior Vice President and Chief Financial Officer, effective July 1, 2026. The company has initiated a search for his successor with the help of a global executive search firm. Mr. Kroner will remain in his role until a new CFO is appointed and will continue as a Senior Vice President until his retirement. In recognition of his commitment to a smooth transition, he was granted a special award of 11,025 restricted stock units, valued at approximately $600,000, which will vest upon his retirement. This transition is expected to ensure continuity in Universal’s financial leadership and maintain its strong position in the agriproducts industry.

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.