NYSE:UVV

Stock Analysis Report

Executive Summary

Universal Corporation engages in the supply of leaf tobacco products worldwide.

Snowflake

Fundamentals

Flawless balance sheet 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


Market Performance


7 Day Return

-0.8%

UVV

0.9%

US Tobacco

1.0%

US Market


1 Year Return

-18.5%

UVV

-30.6%

US Tobacco

6.7%

US Market

Return vs Industry: UVV exceeded the US Tobacco industry which returned -30.6% over the past year.

Return vs Market: UVV underperformed the US Market which returned 6.7% over the past year.


Share holder returns

UVVIndustryMarket
7 Day-0.8%0.9%1.0%
30 Day-4.1%1.1%-1.8%
90 Day-12.6%-14.3%-1.8%
1 Year-14.1%-18.5%-26.0%-30.6%9.1%6.7%
3 Year9.3%-4.1%-20.4%-31.1%46.1%36.6%
5 Year52.3%23.2%15.1%-7.9%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: UVV ($53.22) is trading below our estimate of fair value ($407.05)

Significantly Undervalued: UVV is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: UVV is poor value based on its PE Ratio (14.4x) compared to the Tobacco industry average (12.3x).

PE vs Market: UVV is good value based on its PE Ratio (14.4x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: UVV is good value based on its PB Ratio (1x) compared to the US Tobacco industry average (4.1x).


Next Steps

Future Growth

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

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: UVV's forecast earnings growth (27% per year) is above the savings rate (2.7%).

Earnings vs Market: UVV's earnings (27% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if UVV's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if UVV's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if UVV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Universal performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UVV's earnings have grown by 2.4% 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 (-19.3%) over the past year, making it difficult to compare to the Tobacco industry average (6.7%).


Return on Equity

High ROE: UVV's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: UVV's Return on Assets is below or equal to the Tobacco industry average last year.


Return on Capital Employed

ROCE Improving: UVV has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Universal's financial position?


Financial Position Analysis

Short Term Liabilities: UVV's short term assets ($1.6B) exceeds its short term liabilities ($290.9M)

Long Term Liabilities: UVV's short term assets (1.6B) exceeds its long term liabilities (534.9M)


Debt to Equity History and Analysis

Debt Level: UVV's debt to equity ratio (32.7%) is considered satisfactory

Reducing Debt: UVV's debt to equity ratio has reduced from 40.3% to 32.7% over the past 5 years.

Debt Coverage: UVV's debt is well covered by operating cash flow (48.9%).

Interest Coverage: UVV's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet

Inventory Level: UVV has a high level of physical assets or inventory.

Debt Coverage by Assets: UVV's debt is covered by short term assets (assets are 3.622860x debt).


Next Steps

Dividend

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

5.71%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.5%markettop25%3.8%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: UVV's dividend (5.71%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: UVV's dividend (5.71%) is in the top 25% of dividend payers in the US market (3.77%)

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 (81.4%), 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

What is the CEO of Universal's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

George Freeman (56yo)

11.5yrs

Tenure

US$5,346,387

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 ($USD5.35M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

8.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: UVV's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

66yo

Average Age

Experienced Board: UVV's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$296,22714 Jun 19
Theodore Broome
EntityIndividual
Role
Senior Key Executive
Executive VP & Sales Director of Universal Leaf Tobacco Company Inc
Shares5,000
Max PriceUS$59.25
SellUS$105,57312 Jun 19
James Huffman
EntityIndividual
Shares1,745
Max PriceUS$60.50
SellUS$106,32031 May 19
James Huffman
EntityIndividual
Shares1,862
Max PriceUS$57.10
SellUS$140,62331 May 19
Preston Wigner
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares2,500
Max PriceUS$56.25
SellUS$433,25306 Mar 19
Robert Peebles
EntityIndividual
Shares7,274
Max PriceUS$59.56
SellUS$135,52206 Mar 19
James Huffman
EntityIndividual
Shares2,277
Max PriceUS$59.52
SellUS$9,94620 Nov 18
James Huffman
EntityIndividual
Shares149
Max PriceUS$66.75
SellUS$209,21419 Nov 18
James Huffman
EntityIndividual
Shares3,112
Max PriceUS$67.23
SellUS$201,85629 Oct 18
John Adams
EntityIndividual
Shares3,000
Max PriceUS$68.00

Ownership Breakdown


Management Team

  • George Freeman (56yo)

    Chairman

    • Tenure: 11.5yrs
    • Compensation: US$5.35m
  • Preston Wigner (50yo)

    VP, General Counsel & Secretary

    • Tenure: 13.9yrs
    • Compensation: US$1.48m
  • Theodore Broome (65yo)

    Executive VP & Sales Director of Universal Leaf Tobacco Company Inc

    • Tenure: 8.5yrs
    • Compensation: US$1.50m
  • Candace Formacek (59yo)

    VP & Treasurer

    • Tenure: 7.5yrs
  • Airton Hentschke (49yo)

    COO & Senior VP

    • Tenure: 4.5yrs
    • Compensation: US$2.50m
  • Johan Kroner (51yo)

    Senior VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$1.09m
  • C. Claiborne (58yo)

    VP & Assistant Secretary

    • Tenure: 18.8yrs
  • Scott Bleicher (41yo)

    VP & Controller

    • Tenure: 0.3yrs

Board Members

  • Tom Johnson (69yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$187.38k
  • Bob Sledd (66yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$189.88k
  • Lennart Freeman (68yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$189.88k
  • Eddie Moore (71yo)

    Lead Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$208.63k
  • George Freeman (56yo)

    Chairman

    • Tenure: 11.5yrs
    • Compensation: US$5.35m
  • Thomas Tullidge

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$148.63k
  • Diana Cantor (61yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$187.38k
  • Mike Lawton (60yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$188.63k

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$1.329b
  • Shares outstanding: 24.97m
  • Website: https://www.universalcorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UVVNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
UVVDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0LJDLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

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 Servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:29
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.

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