Universal (UVV) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 6.43%
• Average Volume (3M): 206.64K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.41
• Revenue Growth: 4.11%
• EPS Growth: -15.50%
• Country: US
• Employees: 10,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 0.38
• Shares Outstanding: 24,886,204
• 10 Day Avg. Volume: 177,278
• 30 Day Avg. Volume: 206,641
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $57.00 ▲(6.84% Upside)

Universal's overall stock score is driven by a strong valuation and positive earnings call, offset by mixed financial performance and neutral technical indicators. The attractive dividend yield and P/E ratio are key strengths, while declining revenue growth and potential liquidity issues pose risks.

Universal Business Overview & Revenue Model

Company Description

Universal Corporation (UVV) is a leading global supplier of leaf tobacco and a provider of related services. The company operates primarily in the tobacco sector, sourcing, processing, and selling tobacco to manufacturers of consumer products. In addition to its core business in tobacco, Universal is involved in the development of innovative products and solutions that support the tobacco industry, including risk-reduction products and agricultural technologies.

How the Company Makes Money

Universal Corporation generates revenue primarily through the sale of processed leaf tobacco to cigarette manufacturers and other tobacco product producers. The company has established long-term relationships with major tobacco companies, which provides a stable revenue stream. Its revenue model is based on the procurement, processing, and distribution of tobacco, which involves sourcing tobacco from farmers, processing it in facilities around the world, and selling it to clients in various markets. Additionally, Universal engages in value-added services, such as risk management and supply chain solutions, which further enhance its profitability. Strategic partnerships with growers and industry stakeholders also contribute to its earnings by ensuring a reliable supply of quality tobacco and enabling the company to adapt to changing market demands.

Universal Financial Statement Overview

Summary

Universal has demonstrated strong revenue growth and stable gross profit margins, reflecting effective revenue generation and cost control. The balance sheet is robust, with a healthy equity base, though rising debt levels should be monitored. Cash flow has shown improvement, but historical volatility suggests a need for continued focus on cash management strategies.

Income Statement

Universal has shown consistent revenue growth, increasing from $1.91 billion in 2020 to $2.95 billion in 2025. Gross profit margin has remained stable, indicating strong cost management. However, net profit margin has declined due to fluctuations in net income, suggesting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is manageable, with equity growing alongside debt, maintaining a balanced capital structure. The equity ratio indicates a solid base of stockholders' equity relative to assets. However, the steady increase in total debt warrants monitoring to prevent potential leverage risks.

Cash Flow

Cash flow management shows mixed results, with operating cash flow recovering to positive in 2025 after negative figures in 2024 and 2023. Free cash flow has improved significantly, indicating better cash management, although past volatility highlights potential risks in cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.94B	2.95B	2.75B	2.57B	2.10B	1.98B
Gross Profit	567.33M	548.88M	536.10M	458.29M	408.93M	386.00M
EBITDA	309.96M	301.05M	288.68M	250.07M	214.69M	188.42M
Net Income	103.41M	95.05M	119.60M	124.05M	86.58M	87.41M
Balance Sheet
Total Assets	3.19B	2.99B	2.94B	2.64B	2.59B	2.34B
Cash, Cash Equivalents and Short-Term Investments	178.44M	260.12M	55.59M	64.69M	81.65M	197.22M
Total Debt	1.28B	1.10B	1.06B	849.32M	741.11M	647.09M
Total Liabilities	1.69B	1.49B	1.46B	1.20B	1.20B	993.50M
Stockholders Equity	1.46B	1.46B	1.44B	1.40B	1.34B	1.31B
Cash Flow
Free Cash Flow	132.41M	264.37M	-140.65M	-65.23M	-8.32M	154.26M
Operating Cash Flow	184.31M	326.97M	-74.63M	-10.56M	44.88M	220.41M
Investing Cash Flow	-48.85M	-58.82M	-60.00M	-50.35M	-142.66M	-217.27M
Financing Cash Flow	-59.37M	-63.23M	125.67M	38.95M	-16.76M	91.39M

Universal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVV, the sentiment is Negative. The current price of 53.35 is above the 20-day moving average (MA) of 52.74, below the 50-day MA of 53.87, and below the 200-day MA of 53.84, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 32.71 is Neutral, neither overbought nor oversold. The STOCH value of 12.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UVV.

Universal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	―	$2.97B	29.68	4.56%	0.33%	61.64%	16.76%
MO	―	$94.64B	10.90	―	7.31%	-0.18%	-10.69%
UVV	―	$1.26B	12.32	7.20%	6.43%	4.11%	-15.50%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	―	$224.67B	26.14	―	3.82%	7.72%	-12.45%
TPB	―	$1.62B	37.59	26.05%	0.33%	4.44%	-5.94%
BTI	―	$111.80B	28.33	5.97%	5.84%	0.48%	―

Universal Corporate Events

Universal Corporation Reports Improved Quarterly Earnings

Universal Corporation is a global business-to-business agri-products supplier, primarily known for being the leading global leaf tobacco supplier and providing plant-based ingredients to food and beverage markets. The company recently released its earnings report for the quarter ending June 30, 2025, showing a notable improvement in its financial performance compared to the previous year. Key highlights include a net income of $14.4 million, a significant turnaround from a loss of $2.8 million in the same quarter last year, and an increase in operating income to $33.8 million from $17.2 million. Despite a slight decrease in sales revenue, the company managed to improve its profitability, partly due to reduced interest expenses and effective cost management. Looking ahead, Universal Corporation remains focused on optimizing its operations and exploring growth opportunities in its core markets, with management expressing cautious optimism for continued financial improvement.

Universal Corp’s Earnings Call: Mixed Sentiments and Strategic Focus

The recent earnings call of Universal Corporation revealed a balanced sentiment, with notable improvements in operating and net income, alongside strategic sustainability initiatives. However, these positives were tempered by slight revenue declines and challenges in the Ingredients Operations segment. Despite uncertainties around tariffs and demand, the company remains optimistic about its strategic positioning and potential opportunities.

Universal Corporation Holds 2025 Annual Shareholders Meeting

At the 2025 Annual Meeting of Shareholders held on August 5, 2025, Universal Corporation’s shareholders elected directors for three-year terms, approved executive compensation, and ratified Ernst & Young LLP as the accounting firm for the fiscal year ending March 31, 2026. Additionally, Thomas H. Johnson was appointed as Lead Independent Director. The company reported a revenue of $594 million for the first quarter of fiscal year 2026, with an operating income increase driven by a favorable product mix in its Tobacco Operations segment. Despite a slight revenue decrease, the company saw improved performance in its ingredients segment, focusing on growing this area and optimizing its tobacco business.