Universal (UVV) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: 5.98%
• Average Volume (3M): 185.00K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.20
• 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: 147,805
• 30 Day Avg. Volume: 184,995
• 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: 1.84
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 3.21
• 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: 70 Neutral
• Price Target: $58.00 ▲(10.25% Upside)

Universal Corporation's overall stock score reflects a stable financial performance with consistent revenue growth and operational efficiency. The valuation is attractive with a low P/E ratio and high dividend yield. Technical analysis suggests a neutral trend, while the earnings call highlights both growth and challenges. The company's strategic financial moves and leadership changes are positive, but already factored into the earnings analysis.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business stability.

Debt Reduction

Reducing debt improves financial flexibility and reduces interest expenses, supporting sustainable growth and investment capacity.

Board Appointment

New leadership can bring fresh perspectives and strategic insights, potentially enhancing governance and long-term strategic direction.

Negative Factors

Unfavorable Foreign Currency Impacts

Currency fluctuations can erode profitability and create uncertainty, impacting long-term financial performance and planning.

Higher Inventory Write-downs

Inventory write-downs indicate potential overproduction or demand forecasting issues, affecting profitability and operational efficiency.

Ingredients Operations Challenges

Challenges in product mix and cost management can hinder segment profitability, affecting overall company margins and growth potential.

Universal Business Overview & Revenue Model

Company Description

Universal Corporation (UVV) is a leading global supplier of leaf tobacco and a major player in the agricultural sector. Established in 1884, the company operates in multiple segments, primarily focusing on the procurement, processing, and marketing of tobacco products. Universal serves a diverse clientele, including multinational tobacco manufacturers, and offers a variety of services including logistics and supply chain management, ensuring the efficient delivery of high-quality tobacco products worldwide.

How the Company Makes Money

Universal Corporation generates revenue primarily through the sale of tobacco leaf, which is its core product. The company sources tobacco from various regions, processes it, and then sells it to major tobacco manufacturers around the world. Key revenue streams include the sale of processed tobacco, as well as contract farming services that allow them to cultivate and manage tobacco crops for clients. Additionally, Universal benefits from long-term relationships with large tobacco companies, which provide a stable demand for their products. The company also engages in risk management and commodity trading related to tobacco, which can contribute to its earnings. Overall, its diverse operations within the tobacco supply chain help mitigate risks and enhance profitability.

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. Overall, Universal is in a solid financial position with room for enhancing profitability and cash flow efficiency.

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	7.48B	2.95B	2.75B	2.57B	2.10B	1.98B
Gross Profit	1.41B	548.88M	536.10M	458.29M	408.93M	386.00M
EBITDA	779.50M	301.05M	288.68M	248.57M	222.53M	195.41M
Net Income	291.62M	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	361.65M	264.37M	-140.65M	-65.23M	-8.32M	154.26M
Operating Cash Flow	469.55M	326.97M	-74.63M	-10.56M	44.88M	220.41M
Investing Cash Flow	-99.92M	-58.82M	-60.00M	-50.35M	-142.66M	-217.27M
Financing Cash Flow	-532.03M	-63.23M	125.67M	38.95M	-16.76M	91.39M

Universal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 52.61 is below the 20-day moving average (MA) of 52.95, below the 50-day MA of 52.80, and below the 200-day MA of 54.21, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 62.25 is Neutral, neither overbought nor oversold. The STOCH value of 88.79 is Negative, 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
RLX	76 Outperform	$2.89B	27.34	4.71%	0.34%	51.49%	21.43%
UVV	70 Neutral	$1.36B	12.28	7.72%	5.98%	3.01%	-7.14%
TPB	69 Neutral	$2.11B	39.03	22.54%	0.27%	6.71%	8.16%
MO	64 Neutral	$99.60B	11.32	―	7.02%	-0.96%	-11.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	61 Neutral	$245.87B	28.61	―	3.59%	7.72%	-12.45%
BTI	59 Neutral	$124.78B	31.71	5.97%	5.20%	0.48%	―

Universal Corporate Events

Universal Secures New Credit Agreement with Banks

On December 9, 2025, Universal Corporation entered into a new unsecured Credit Agreement with several banks, including JPMorgan Chase Bank and Truist Bank, to secure a five-year term loan A-1 facility of $275 million, a seven-year term loan A-2 facility of $345 million, and a five-year revolving loan facility of $780 million. This agreement, which replaces the company’s previous credit agreement, is intended to support general corporate purposes such as acquisitions, investments, and working capital. The Credit Agreement includes various financial covenants and conditions, such as maintaining a maximum total net leverage ratio and a minimum consolidated tangible net worth, and allows for prepayment without penalties. The termination of the existing credit agreement was completed on December 9, 2025, using the new Credit Agreement to repay all outstanding debts.

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.