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Universal (UVV) AI Stock Analysis
Universal
(NYSE:UVV)
UVV’s score is primarily constrained by deteriorating earnings quality, margin compression, and weak technical momentum. A solid balance sheet, improved recent cash generation, strong liquidity, and a high dividend yield provide support, but the elevated P/E, tobacco oversupply, ingredients headwinds, and leadership transition keep the overall profile below average.
Universal Key Performance Indicators (KPIs)
Operating Income by SegmentMeasures operating profit for each segment to show which parts of the business actually generate earnings after costs; exposes margin differences, operational efficiency, and segments that are subsidizing others—critical for forecasting earnings, dividend capacity, and where cost cuts or investment can improve returns.
The company’s operating income is overwhelmingly driven by Tobacco—its scale cushions results but is showing earnings volatility tied to seasonal peaks and large inventory write‑downs that eroded Q4/FY26 profits—so performance remains exposed to crop cycles and pricing. Ingredients is no longer a reliable margin contributor: Shanks-related underperformance and a $41M goodwill impairment highlight execution and fixed‑cost pressure, meaning ingredients recovery depends on management’s commercial fixes. 'Other' is a recurring drag from one‑offs. Management’s plan to cut uncommitted inventory and strengthen execution is critical to stabilizing earnings and protecting the dividend.
The FlyUniversal (UVV) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.03B
- Dividend Yield
- 7.96%
- Average Volume (3M)
- 355.88K
- Price to Earnings (P/E)
- 54.5
- Beta (1Y)
- 0.11
- Revenue Growth
- -3.04%
- EPS Growth
- -81.53%
- Country
- US
- Employees
- 11,250
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Tobacco
Universal Business Overview & Revenue Model
Company Description
Universal Corporation is a global agricultural enterprise specializing in the processing and supply of leaf tobacco and a diverse range of plant-based ingredients. Its activities are organized into two primary segments: Tobacco Operations and Ingredi...
How the Company Makes Money
Universal makes money mainly by selling products and services through two operating segments. 1) Tobacco Operations (primary revenue and earnings driver): - Sale of processed leaf tobacco: Universal purchases leaf tobacco from growers or local market...
Universal Earnings Call Summary
The call was mixed. Current financial performance was materially weaker, with double-digit declines in consolidated and tobacco revenue, sharply lower operating income, a consolidated net loss, tobacco-market oversupply, and ongoing ingredients headwinds. However, management maintained its full-year tobacco sales plan, reported strong liquidity, described disciplined sourcing and inventory initiatives, expected normalized tobacco margins, and reiterated long-term investment and improvement plans for both tobacco and ingredients. The positive strategic outlook and liquidity position were balanced by significant current-period declines and execution challenges.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management said customer demand expectations remain consistent with the fiscal year sales plan, with shipments expected to be weighted more heavily in the second half of the fiscal year, and it would not expect to see the large inventory write downs that it had last year. Tobacco margins are expected to be “pretty normalized” from a percentage basis on where they were before, uncommitted inventories are expected to return to the 20% target as the season progresses, and working capital should be reduced from recent years due to lower green tobacco prices, although quarter-end levels will fluctuate with shipping timing, customer orders, and carryover crops. CapEx is estimated to be above maintenance levels this year, SG&A is expected to be in the 300 to $310 million band, and interest expense is expected to be down a little from last year. Ingredients improvement efforts are expected to take time and continue through the next fiscal year, with the company focused on steady and incremental advances; potential additional tobacco volumes this year could occur to hedge against risks that could occur next season.
Universal Financial Statement Overview
Summary
The balance sheet remains reasonably strong, but weak profitability, compressed margins, declining returns on equity, and historically volatile cash flow materially reduce the financial score.
Income Statement
43NeutralBalance Sheet
61PositiveCash Flow
46Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.85B | 2.92B | 2.95B | 2.75B | 2.57B | 2.10B |
| Gross Profit | 480.04M | 512.02M | 548.88M | 536.10M | 458.29M | 408.93M |
| EBITDA | 196.06M | 230.13M | 301.05M | 288.68M | 248.57M | 222.53M |
| Net Income | 19.12M | 32.64M | 95.05M | 119.60M | 124.05M | 86.58M |
Balance Sheet | ||||||
| Total Assets | 3.04B | 2.77B | 2.99B | 2.94B | 2.64B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 173.59M | 62.18M | 260.12M | 55.59M | 64.69M | 81.65M |
| Total Debt | 1.22B | 939.82M | 1.10B | 1.06B | 849.32M | 741.11M |
| Total Liabilities | 1.61B | 1.31B | 1.49B | 1.46B | 1.20B | 1.20B |
| Stockholders Equity | 1.39B | 1.42B | 1.46B | 1.44B | 1.40B | 1.34B |
Cash Flow | ||||||
| Free Cash Flow | 164.38M | 80.27M | 264.37M | -140.65M | -65.23M | -8.32M |
| Operating Cash Flow | 217.08M | 129.10M | 326.97M | -74.63M | -10.56M | 44.88M |
| Investing Cash Flow | -46.69M | -42.96M | -58.82M | -60.00M | -50.35M | -142.66M |
| Financing Cash Flow | -174.67M | -284.34M | -63.23M | 125.67M | 38.95M | -16.76M |
Universal Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVV, the sentiment is Neutral. The current price of 41.44 is above the 20-day moving average (MA) of 40.58, below the 50-day MA of 42.37, and below the 200-day MA of 48.69, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 79.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UVV.
Universal Risk Analysis
Universal disclosed 24 risk factors in its most recent earnings report. Universal reported the most risks in the "Production" category.
Latest Risks Added
0 New RisksUniversal Peers Comparison
Overall Rating
BTI68Neutral
PM68Neutral
MO65Neutral
TPB65Neutral- UVV49Neutral
XXII40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BTI | 68Neutral | $132.14B | 15.73 | 13.38% | 5.40% | 4.47% | 117.22% |
| PM | 68Neutral | $325.43B | 30.48 | -119.68% | 2.88% | 7.91% | 24.06% |
| MO | 65Neutral | $129.80B | 16.12 | -279.72% | 5.50% | 2.41% | -7.63% |
| TPB | 65Neutral | $1.35B | 28.28 | 11.93% | 0.47% | 20.10% | -3.19% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| UVV | 49Neutral | $1.03B | 54.53 | 1.33% | 7.96% | -3.04% | -81.53% |
| XXII | 40Underperform | $1.34M | 0.00 | -20.47% | ― | -27.44% | 99.95% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| UVV | Universal Corporation | 41.44 | -6.05 | -12.75% | |
| MO | Altria | 78.03 | 24.95 | 47.00% | |
| BTI | British American Tobacco | 61.52 | 12.03 | 24.30% | |
| PM | Philip Morris International | 208.79 | 69.13 | 49.50% | |
| XXII | 22nd Century Group | 0.07 | -464.93 | -99.99% | |
| TPB | Turning Point Brands Inc | 67.31 | -25.97 | -27.84% |
Universal Corporate Events
Universal temporarily relaxes leverage limits in credit pact
NeutralOn October 9, 2026, Universal Corporation amended its December 2025 Credit Agreement with JPMorgan Chase Bank, N.A. and other lenders, revising the covenant that limits its Total Net Leverage Ratio. The maximum ratio was temporarily increased to 3.75...
Universal terminates ingredients vice president amid succession search
NegativeUniversal Corporation reported that J. Patrick O’Keefe, its Vice President of Ingredients, was terminated without cause on September 14, 2026, effective September 15, 2026, even though he had previously notified the company on July 29, 2026, of...
Universal Reports Weak Q1 Results Amid Tobacco Oversupply
NegativeAt its 2026 Annual Meeting of Shareholders held on August 4, 2026, Universal’s investors elected Arthur J. Schick Jr., Gregory A. Trojan, and Jaqueline T. Williams to three-year board terms, endorsed executive compensation in a non-binding advi...
Universal Announces Leadership Transition in Ingredients Segment
NeutralOn July 29, 2026, Universal Corporation announced that J. Patrick O’Keefe intends to retire from his roles as Vice President, Ingredients at the parent company and Senior Vice President of Universal Ingredients, Inc. The company will engage an...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 21, 2026