Universal Corporation engages in the supply of leaf tobacco products worldwide.
No risks detected for UVV from our risk checks.
Undervalued established dividend payer.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: UVV exceeded the US Tobacco industry which returned -24.8% over the past year.
Return vs Market: UVV underperformed the US Market which returned 4.1% over the past year.
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
20 hours ago | Simply Wall StIs Universal Corporation (NYSE:UVV) Struggling With Its 8.4% Return On Capital Employed?
2 weeks ago | Simply Wall StHow Should Investors React To Universal Corporation's (NYSE:UVV) CEO Pay?
3 weeks ago | Simply Wall StWhat Does Universal Corporation's (NYSE:UVV) P/E Ratio Tell You?
Is Universal undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UVV ($43.36) is trading below our estimate of fair value ($530.89)
Significantly Below Fair Value: UVV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UVV is good value based on its PE Ratio (12.4x) compared to the Tobacco industry average (12.6x).
PE vs Market: UVV is good value based on its PE Ratio (12.4x) compared to the US market (15.1x).
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 (0.8x) compared to the US Tobacco industry average (3.1x).
How is Universal forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- Examine whether Universal is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Universal competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Food, Beverage & Tobacco industry.
How has Universal performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UVV has high quality earnings.
Growing Profit Margin: UVV's current net profit margins (4.5%) are lower than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: UVV's earnings have grown by 1.1% per year over the past 5 years.
Accelerating Growth: UVV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: UVV had negative earnings growth (-15.3%) over the past year, making it difficult to compare to the Tobacco industry average (-1.2%).
Return on Equity
High ROE: UVV's Return on Equity (6.9%) is considered low.
How is Universal's financial position?
Financial Position Analysis
Short Term Liabilities: UVV's short term assets ($1.6B) exceed its short term liabilities ($270.6M).
Long Term Liabilities: UVV's short term assets ($1.6B) exceed its long term liabilities ($526.9M).
Debt to Equity History and Analysis
Debt Level: UVV's debt to equity ratio (35.3%) is considered satisfactory.
Reducing Debt: UVV's debt to equity ratio has increased from 34.6% to 35.3% over the past 5 years.
Debt Coverage: UVV's debt is not well covered by operating cash flow (18.6%).
Interest Coverage: UVV's interest payments on its debt are well covered by EBIT (9.4x coverage).
What is Universal's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UVV's dividend (7.01%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: UVV's dividend (7.01%) is in the top 25% of dividend payers in the US market (4.73%)
Stability and Growth of Payments
Stable Dividend: UVV's dividends per share have been stable in the past 10 years.
Growing Dividend: UVV's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (86.9%), UVV's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
George Freeman (56yo)
Mr. George C. Freeman, III, has been Chairman of Universal Corporation since August 5, 2008. Mr. Freeman has been Chief Executive Officer of Universal Corporation since April 1, 2008. Mr. Freeman has been ...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD5.35M) is above average for companies of similar size in the US market ($USD3.23M).
Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Senior VP & CFO||1.67yrs||US$1.09m||0.0034% $36.5k|
|COO & Senior VP||5.08yrs||US$2.50m||0.10% $1.1m|
|VP, General Counsel & Secretary||14.5yrs||US$1.48m||0.099% $1.1m|
|Executive VP & Sales Director of Universal Leaf Tobacco Company Inc||9.08yrs||US$1.50m||0.067% $714.7k|
|VP & Chief Compliance Officer||no data||no data||no data|
|VP & Treasurer||8.08yrs||no data||0.036% $381.0k|
|VP & Controller||0.92yr||no data||0.0037% $39.6k|
|Senior Vice President of Information & Planning - Universal Leaf Tobacco Company||12.75yrs||no data||0.031% $329.3k|
|VP & Assistant Secretary||19.33yrs||no data||0.0049% $52.3k|
Experienced Management: UVV's management team is seasoned and experienced (9.1 years average tenure).
|Independent Director||19.33yrs||US$187.38k||0.062% $662.5k|
|Chairman Emeritus||no data||US$1.82m||no data|
|Chairman Emeritus||no data||US$117.00k||no data|
|Independent Director||10.75yrs||US$189.88k||0.035% $372.6k|
|Independent Director||6.75yrs||US$189.88k||0.023% $241.9k|
|Lead Independent Director||3.75yrs||US$208.63k||0.094% $1.0m|
|Independent Director||1.75yrs||US$148.63k||0.0040% $43.3k|
|Independent Director||8.33yrs||US$187.38k||0.030% $317.5k|
|Independent Director||3.75yrs||US$188.63k||0.0093% $99.1k|
Experienced Board: UVV's board of directors are considered experienced (7.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Universal Corporation's company bio, employee growth, exchange listings and data sources
- Name: Universal Corporation
- Ticker: UVV
- Exchange: NYSE
- Founded: 1886
- Industry: Tobacco
- Sector: Food, Beverage & Tobacco
- Market Cap: US$1.070b
- Shares outstanding: 24.67m
- Website: https://www.universalcorp.com
Number of Employees
- Universal Corporation
- 9201 Forest Hill Avenue
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|UVV||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|UVV||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0LJD||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
Universal Corporation engages in the supply of leaf tobacco products worldwide. The company operates through North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Services segments. It is involved in procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; e-liquid testing services; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke, as well as engages in the research and development growth trials with various partners for non-tobacco agriproducts production, such as vanilla. Further, it produces and sells dehydrated and juiced fruit and vegetable products, as well as provides water pipe style leaf tobacco; and recycles waste materials from tobacco production. The company was founded in 1886 and is headquartered in Richmond, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/26 13:49|
|End of Day Share Price||2020/05/22 00:00|
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.