Universal Corporation (UVV): A Comprehensive Stock Analysis

Introduction

Universal Corporation (UVV) stands as a business-to-business agriculture products supplier, providing leaf tobacco and plant-based ingredients to consumer product manufacturers across the globe. With a history dating back to 1918, the company operates through two primary segments: Tobacco Operations and Ingredients Operations. This analysis delves into UVV's stock performance, financial health, valuation, and future prospects, providing a comprehensive overview for potential investors. Robinhood provides the tools needed to invest in UVV.

Company Overview

Headquartered in Richmond, Virginia, Universal Corporation is a global leader in sourcing, processing, and supplying leaf tobacco. The company's operations are divided into two key segments:

Tobacco Operations: This segment focuses on the selection, procurement, processing, packing, storing, shipping, and financing of flue-cured, burley, dark air-cured, and oriental leaf tobacco. These activities cater to manufacturers of consumer tobacco products worldwide. The segment also offers specialized services, including custom blending.
Ingredients Operations: This segment caters to the growing demand for plant-based ingredients, providing a variety of options for both human and pet consumption.

Stock Performance

As of March 1, 2026, Universal Holding (UVV) stock is priced at $53.75, with a market capitalization of $1.34 billion. The stock has experienced fluctuations, trading between $53.68 and $54.52 on the aforementioned date.

Recent Performance: UVV stock has decreased by -0.17% in the past 24 hours. Over the past week, the stock has risen by 0.24%, while experiencing a -3.19% fall over the last month. However, over the last year, Universal Corporation has shown a 1.17% increase.
Historical Data: UVV reached its all-time high on February 8, 2017, with a price of $83.35. Its all-time low was $1.36, reached on May 26, 1970.
Volatility: UVV stock is 1.56% volatile and has a beta coefficient of 0.23.

UVV Return vs. S&P

	1 Year	5 Year	5 Year Annualized	Since IPO
UVV	+7.73%	+42.82%	+7.38%	+43,199%
S&P	+17.36%	+80.49%	+12.52%	+7,057%

Financial Analysis

Universal Corporation's financial performance provides valuable insights into its stability and growth potential.

Key Statistics: The stock trades at a price-to-earnings (P/E) ratio of 15.87 and offers a dividend yield of 6.1%.
Market Capitalization: Today Universal Corporation has the market capitalization of 1.34B, it has increased by 0.79% over the last week.
Fiscal Year Performance: In fiscal year 2025, Universal's revenue was $2.95 billion, an increase of 7.23% compared to the previous year's $2.75 billion. However, earnings were $95.05 million, a decrease of -20.53%.
Revenue and Earnings: Universal Corporation revenue for the last quarter amounts to $861.29 million, despite the estimated figure of $927.20 million. In the next quarter, revenue is expected to reach $728.20 million. UVV net income for the last quarter is $33.25 million, while the quarter before that showed $34.17 million of net income which accounts for 0.00% change.
EBITDA: Universal Corporation EBITDA is $281.26 million, and current EBITDA margin is 10.31%.

Key Financial Ratios: Fiscal Year Data

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Market Capitalization	1,339	1,271	1,299	1,429	1,446
Enterprise Value	2,369	2,253	2,270	2,192	2,111
PE Ratio	15.84	10.63	10.47	16.51	16.54
PS Ratio	0.46	0.46	0.51	0.68	0.73
PB Ratio	0.90	0.86	0.90	1.03	1.07
Debt / Equity Ratio	0.73	0.72	0.59	0.54	0.50
Return on Equity (ROE)	6.97%	9.12%	9.23%	7.58%	7.30%
Return on Assets (ROA)	4.71%	5.05%	4.33%	4.33%	4.84%
Dividend Yield	6.10%	7.01%	7.20%	6.86%	7.05%

Revenue to Profit Conversion

The indicators suggest a mixed performance. While revenue has increased, the conversion to profit has seen some challenges, as evidenced by the decrease in earnings in fiscal year 2025.

Dividends

Yes, UVV dividends are paid quarterly. The last dividend per share was 0.82 USD. As of today, Dividend Yield (TTM)% is 6.09%. Universal Corporation dividend yield was 5.78% in 2024, and payout ratio reached 85.66%. The year before the numbers were 6.19% and 67.00% correspondingly.

Technical Analysis

Technical analysis provides insights into potential future price movements based on historical data and patterns.

Current Assessment: Universal Corporation technical analysis shows a sell signal today, and its 1-week rating is neutral. The 1-month rating for Universal Corporation stock also indicates a sell signal.
Oscillators: Oscillators show a neutral to sell sentiment.
Moving Averages: Moving averages also indicate a neutral to sell sentiment.

Valuation

PE Ratio: The stock trades at a price-to-earnings (P/E) ratio of 15.87.
Forward PE: The forward PE is 12.24.

Factors Influencing Stock Price

Several factors can influence Universal Corporation's stock price:

Company Performance: Financial results, including revenue, earnings, and profit margins, play a significant role.
Industry Trends: Changes in the tobacco industry and the demand for plant-based ingredients can impact the company's prospects.
Economic Conditions: Overall economic conditions, including interest rates and inflation, can affect investor sentiment and stock valuations.
Analyst Ratings: Analysts' opinions and price targets can influence investor decisions. According to analysts, UVV price has a max estimate of 78.00 USD and a min estimate of 78.00 USD.
Insider Transactions: Insider transactions, such as stock purchases or sales by company executives and directors, can provide insights into the company's prospects. Recently, Universal has reported an insider transaction involving Director Lennart Free.

Risks and Challenges

Investing in Universal Corporation, like any stock, involves certain risks and challenges:

Declining Tobacco Consumption: The global decline in tobacco consumption could negatively impact the company's Tobacco Operations segment.
Regulatory Changes: Changes in tobacco regulations could affect the company's ability to operate and sell its products.
Competition: Intense competition in both the tobacco and plant-based ingredients markets could put pressure on pricing and margins.
Commodity Price Fluctuations: Fluctuations in the prices of tobacco and other agricultural commodities could impact the company's profitability.

Universal Corporation Employees

As of March 1, 2026, the company has 28.5K employees.

Investing in UVV

Like other stocks, UVV shares are traded on stock exchanges, e.g. Nasdaq, Nyse, Euronext, and the easiest way to buy them is through an online stock broker. To do this, you need to open an account and follow a broker's procedures, then start trading. You can trade Universal Corporation stock right from TradingView charts - choose your broker and connect to your account.

Investing in stocks requires comprehensive research: you should carefully study all the available data, e.g. company's financials, related news, and its technical analysis.

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