Universal Corp

Industrials
Farming/Seeds/Milling
www.universalcorp.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.26B
PE 10
Debt $1.20B
Cash $101.70M
EV $2.36B
FCF -$103.99M

Earnings

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Sales & Net Margins

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Earnings	$121.94M
EBIT	$236.54M
ROE	8%
ROA	8%
FCF	-$103.99M
Equity	$1.44B
Growth Stability	93%
PE	10.35
PEG	0.79
PB	0.87
P/FCF	-12.13
P/S	0.45
Price/Cash	0.08
Debt/Equity	0.83
Debt/FCF	-11.53
Net Margins	-0%
Gross Margins	19%
Op. Margins	8%
Earnings CAGR	8%
Sales Growth YoY	15%
Sales Growth QoQ	-23%
Sales CAGR	3%
FCF CAGR	-2%
Equity CAGR	0%
Earnings Stability	0.19
Earnings Growth YoY	-45%
Earnings Growth QoQ	-107%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	9%
FCF CAGR 5Y	2%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	3%
Market Cap	$1.26B
Revenue	$2.83B
Dividend Yield	6%
Payout Ratio	65%
Assets	$3.03B
Total Debt	$1.20B
Cash	$101.70M
Shares Outstanding	24.88M
EV	2.36B
Earnings Score	10%
Moat Score	68%
Safety Score	67%
Final Score	48%
Working Capital	1.35B
Current Ratio	2.6
Gross Profit	$545.51M
Shares Growth 3y	1%
Equity Growth QoQ	-2%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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Universal Corp is a global leaf tobacco supplier. The company procures leaf tobacco from farmers, processes it, and sells it to companies that manufacture consumer tobacco products. Universal does not manufacture or sell any consumer products itself. The company's segment includes Tobacco Operations and Ingredients Operations. It generates maximum revenue from the Tobacco Operations segment. Geographically, it derives a majority of revenue from the United States.

SEC Filings

Direct access to Universal Corp (UVV) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31

Sector Comparison

How does Universal Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Universal Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 19%

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Universal Corp Discounted Cash Flow

Fully customizable DCF calculator online for Universal Corp .

Years

Calculation mode

= -$889M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$104M	-$102M	-$99M	-$97M	-$95M	-$92M	-$90M	-$88M	-$86M	-$84M	-$82M	-$820M
DCF		-$92M	-$82M	-$73M	-$65M	-$57M	-$51M	-$45M	-$40M	-$36M	-$32M	-$316M
Value	-$889M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	4%	4%	1%	5%	5%	4%	4%	4%	5%	4%	-0%
ROA	-	8%	9%	8%	8%	6%	6%	7%	7%	8%	8%
ROE	-	6%	2%	8%	8%	6%	6%	6%	9%	8%	8%

Bad Net Margins (-0.47%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	3.2	2	8.44	3.37	-18.41	4.03	-84.44	-12.5	-7.37	-11.53
Debt over Equity	0.31	0.3	0.32	0.3	0.31	0.35	0.46	0.51	0.57	0.7	0.83
Growth Stability	-	-	-	100%	100%	93%	93%	99%	100%	100%	93%

Good Debt/FCF ratio (-11.53)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.83)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (93%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	-7%	-2%	-2%	9%	-14%	4%	6%	22%	7%	9%
Earnings YoY growth	-	-5%	-78%	406%	-1%	-31%	22%	-1%	43%	-4%	13%
Equity YoY growth	-	4%	-9%	4%	-0%	-7%	5%	3%	4%	3%	3%
FCF YoY growth	-	-19%	57%	-77%	156%	-119%	-734%	-105%	684%	116%	2%