Universal Corporation (UVV) AI Stock Analysis

Universal Corporation operates in two segments: Tobacco Operations and Ingredients Operations. It procures, finances, processes, packages, stores, and ships leaf tobacco to consumer tobacco manufacturers. Offerings include flue-cured, burley, and oriental tobaccos for cigarettes, as well as dark air-cured tobaccos for cigars, cigarillos, smokeless, and pipe products. Value-added services span blending, testing, cutting, inventory management, reconstituted leaf manufacturing, electronic nicotine delivery systems, and agricultural testing. Additionally, the company produces plant-based specialty vegetable and fruit ingredients, botanical extracts, and flavorings for human and pet food applications.

Universal Corporation achieved an 8.1% five-year revenue compound annual growth rate from FY2021 to FY2026, expanding revenue from $2.10B in FY2022 to a peak of $2.95B in FY2025. In FY2026, revenue fell 0.8% to $2.92B, while gross margin tightened to 17.5% from 18.6% in FY2025. Operating margin dropped to 7.2%, and net income fell to $32.6M from $95.0M in FY2025, bringing diluted earnings per share to $2.56. In the latest quarter ended June 30, 2026, top-line contraction intensified as revenue declined 11.8% year over year and quarterly earnings dropped 44.3%. Over the trailing twelve months, operating margin stands at 0.4% on $2.85B in revenue.

As of June 30, 2026, Universal Corporation held $173.6M in cash and short-term investments against total debt of $1.22B, resulting in net debt of $1.04B. Total assets stood at $3.04B and shareholders' equity was $1.39B, yielding a debt-to-equity ratio of 0.88 and a current ratio of 2.57. In FY2026, the company generated $129.1M in operating cash flow and $80.3M in free cash flow. Cash deployment included capital expenditures of $48.8M and dividend payments of $81.3M.

At a market cap of $1.01B and enterprise value of $2.13B, Universal Corporation trades at a trailing price-to-earnings ratio of 53.5x, well above the 18.6x median of its US-listed Consumer Defensive peers. However, its forward P/E of 12.0x is below the peer median of 14.3x, and its enterprise-value-to-EBITDA multiple of 10.9x is lower than the peer median of 11.7x. The company's price-to-sales ratio sits at 0.4x compared to 0.7x for peers. Over the trailing 12 months, the stock returned -17.7%, underperforming the S&P 500 return of 16.8%.

Universal Corporation pays a quarterly dividend with an annual forward payout of $3.32, translating to a dividend yield of 8.16%. The company has paid consecutive dividends for 42 years, demonstrating an annualized five-year dividend growth rate of 1.3%. Its payout ratio is listed at 1.6%, and the most recent ex-dividend date occurred on October 9, 2026.

Wall Street coverage includes a mean price target of $67.00, reflecting a 64.7% premium over the last close of $40.67. For the fiscal year ending March 31, 2027, consensus estimates project earnings per share of $3.18, a 20.4% increase, on revenue of $2.72B. For the subsequent fiscal year, 1 analyst expects revenue to reach $2.84B with earnings per share of $3.95. Over the last four quarters, the company beat earnings estimates once. The next earnings report is scheduled for November 4, 2026.

This page is an AI-written research summary of Universal Corporation (UVV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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