NYSE:UVV

Stock Analysis Report

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Market Cap

US$1.3b

Last Updated

2021/08/01 22:01 UTC

Data Sources

Company Financials

Executive Summary

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. More Details


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Universal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UVV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: UVV's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

UVV

0.2%

US Tobacco

-0.4%

US Market


1 Year Return

23.7%

UVV

18.0%

US Tobacco

35.9%

US Market

Return vs Industry: UVV exceeded the US Tobacco industry which returned 18% over the past year.

Return vs Market: UVV underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

UVVIndustryMarket
7 Day2.3%0.2%-0.4%
30 Day-8.7%-5.5%-0.3%
90 Day-9.1%-10.8%3.1%
1 Year31.2%23.7%27.0%18.0%38.0%35.9%
3 Year-8.8%-23.2%0.7%-18.8%62.9%52.7%
5 Year9.8%-14.3%-1.3%-26.4%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Universal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Universal undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UVV ($52.16) is trading below our estimate of fair value ($312.59)

Significantly Below Fair Value: UVV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UVV is poor value based on its PE Ratio (14.7x) compared to the Global Tobacco industry average (13.4x).

PE vs Market: UVV is good value based on its PE Ratio (14.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UVV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UVV is good value based on its PB Ratio (1x) compared to the US Tobacco industry average (8.5x).


Future Growth

How is Universal forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.1%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Universal has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Universal performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UVV has high quality earnings.

Growing Profit Margin: UVV's current net profit margins (4.4%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: UVV's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: UVV's earnings growth over the past year (21.9%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: UVV earnings growth over the past year (21.9%) exceeded the Tobacco industry 2.4%.


Return on Equity

High ROE: UVV's Return on Equity (7.1%) is considered low.


Financial Health

How is Universal's financial position?


Financial Position Analysis

Short Term Liabilities: UVV's short term assets ($1.6B) exceed its short term liabilities ($293.2M).

Long Term Liabilities: UVV's short term assets ($1.6B) exceed its long term liabilities ($700.3M).


Debt to Equity History and Analysis

Debt Level: UVV's debt to equity ratio (47.8%) is considered high.

Reducing Debt: UVV's debt to equity ratio has increased from 30.7% to 47.8% over the past 5 years.

Debt Coverage: UVV's debt is well covered by operating cash flow (34.2%).

Interest Coverage: UVV's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

What is Universal current dividend yield, its reliability and sustainability?

5.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UVV's dividend (5.98%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: UVV's dividend (5.98%) is in the top 25% of dividend payers in the US market (3.55%)


Stability and Growth of Payments

Stable Dividend: UVV's dividends per share have been stable in the past 10 years.

Growing Dividend: UVV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.9%), UVV's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.3yrs

Average management tenure


CEO

George Freeman (58 yo)

13.25yrs

Tenure

US$5,171,861

Compensation

Mr. George C. Freeman, III, has been Chairman of Universal Corporation since August 5, 2008. Mr. Freeman has been Chief Executive Officer of Universal Corporation since April 1, 2008. Mr. Freeman has been ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD5.17M) is above average for companies of similar size in the US market ($USD3.71M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: UVV's management team is seasoned and experienced (11.3 years average tenure).


Board Members

Experienced Board: UVV's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UVV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Universal Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Corporation
  • Ticker: UVV
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.281b
  • Shares outstanding: 24.56m
  • Website: https://www.universalcorp.com

Number of Employees


Location

  • Universal Corporation
  • 9201 Forest Hill Avenue
  • Richmond
  • Virginia
  • 23235
  • United States

Listings


Biography

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations and Ingredients Operations. It is involved in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:01
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.