UVV

Universal Corporation

Fundamental data last updated:October 7, 2026

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company profile

SECTOR

Consumer Defensive

industry

Tobacco

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations and Ingredients Operations. It is involved in the 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; 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. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. The company was founded in 1886 and is headquartered in Richmond, Virginia.

 


VALUATION

P/E

39.24

Market Cap ($M USD)

$1.28B

Forward P/E

11.10

PEG

0.04

PRICE TO SALES

0.58

PRICE TO BOOK

0.90

EV / EBITDA

10.40

5-Year Average P/E

Free Cash Flow Yield

39,881.73%

DCF Value

$-40.68

Graham Number

$40.73

Price to FCF

0.00

EV to FCF

0.00

Earnings Yield

2.55%

FCF Yield

39,881.73%

DIVIDEND

Yield

6.41%

Annual Payout

$3.28

Payout Ratio

108191.22%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.30

Next Year EPS Growth Estimate

$4.61

Next Year Revenue Growth Estimate

$3.00B

Return on Equity (ROE)

2.24%

FREE CASH FLOW

Operating Margin

7.62%

Debt-to-Equity

0.66

Piotroski F-Score

5

Altman Z-Score

N/A

Return on Invested Capital (ROIC)

-29.85%

Current Ratio

0.00

Quick Ratio

0.00

Net Debt to EBITDA

4.41

Interest Coverage

2.16

Gross Profit margin

18.67%

FCF PER SHARE

$20316.35

REVENUE PER SHARE

$88.26

Gainseekers Quantitative Analysis

Summary

Universal Corporation’s valuation presents a mixed picture. Despite a Forward P/E of 11.65 suggesting potential undervaluation, the stock’s price has traded above its DCF value, indicating possible overpricing. The Graham Number further supports this notion, as the current price exceeds this intrinsic value measure. However, the Altman Z-score of 2.88 signals moderate financial stability, while an earnings yield of 6.34% suggests a reasonable return on investment. Overall, the market may be slightly optimistic, but the company’s financial health remains solid.

AI Exposure / Tech Reliance

In the tobacco industry, Universal Corporation faces limited direct exposure to AI and tech shifts. The sector's traditional nature means adaptation is slow, but potential exists in supply chain optimization and customer engagement through digital platforms. However, the core business remains largely insulated from rapid tech disruptions.

The Bull Case

For value and GARP investors, Universal Corporation offers compelling reasons to buy. With a robust ROIC of 10.02%, the company demonstrates efficient capital allocation, translating into strong returns. The Piotroski F-Score of 6 indicates solid financial health, while a healthy operating margin of 7.80% underscores pricing power. Despite a modest FCF yield, the company's ability to generate cash flow supports its attractive dividend yield of 6.11%, making it a tempting choice for income-focused investors.

The Bear Case

Yet, there are structural risks that cannot be ignored. The company's Price to FCF ratio of 25.40 suggests a premium valuation, while a Net Debt to EBITDA ratio of 3.63 raises concerns about leverage. Moreover, the stock's proximity to its 52-week high, with only a 25.38% distance, hints at potential overextension. These factors, combined with a low interest coverage ratio of 2.87, highlight vulnerabilities that could impact future performance.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.59

Insider Buying % (6 Mo)

Distance to 52-Week High

31.61%

Distance to 52-Week Low

2.37%

EARNINGS SURPRISE %

-142.59%

50-DAY SMA

$53.08

200-DAY SMA

$53.74

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.