How Has Universal Corporation’s (NYSE:UVV) Performed Against The Industry?

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Assessing Universal Corporation’s (NYSE:UVV) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess UVV’s latest performance announced on 31 March 2019 and evaluate these figures to its historical trend and industry movements.

See our latest analysis for Universal

How Well Did UVV Perform?

UVV’s trailing twelve-month earnings (from 31 March 2019) of US$104m has declined by -1.5% compared to the previous year.

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -1.2%, indicating the rate at which UVV is growing has slowed down. Why is this? Well, let’s look at what’s occurring with margins and if the rest of the industry is feeling the heat.

NYSE:UVV Income Statement, May 30th 2019
NYSE:UVV Income Statement, May 30th 2019

In terms of returns from investment, Universal has fallen short of achieving a 20% return on equity (ROE), recording 8.0% instead. Furthermore, its return on assets (ROA) of 5.6% is below the US Tobacco industry of 6.3%, indicating Universal’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Universal’s debt level, has increased over the past 3 years from 9.1% to 9.7%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I recommend you continue to research Universal to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for UVV’s future growth? Take a look at our free research report of analyst consensus for UVV’s outlook.
  2. Financial Health: Are UVV’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.