UNIVERSAL CORP/VA (UVV) Stock Fundamental Analysis
USA - NYSE:UVV - US9134561094 - Common Stock
53.4 USD
-0.12 (-0.22%)
53.4 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to UVV. UVV was compared to 8 industry peers in the Tobacco industry. While UVV is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on UVV.
1. Profitability
1.1 Basic Checks
UVV had positive earnings in the past year.
In the past year UVV had a positive cash flow from operations.
Each year in the past 5 years UVV has been profitable.
The reported operating cash flow has been mixed in the past 5 years: UVV reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of UVV (3.24%) is comparable to the rest of the industry.
UVV has a better Return On Equity (7.09%) than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.03%, UVV is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UVV is significantly below the industry average of 14.43%.
The last Return On Invested Capital (7.03%) for UVV is above the 3 year average (6.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 7.09% | ||
| ROIC | 7.03% |
ROA(3y)3.98%
ROA(5y)3.81%
ROE(3y)7.91%
ROE(5y)7.37%
ROIC(3y)6.47%
ROIC(5y)6.26%
1.3 Margins
Looking at the Profit Margin, with a value of 3.51%, UVV is doing worse than 62.50% of the companies in the same industry.
UVV's Profit Margin has declined in the last couple of years.
UVV has a Operating Margin of 8.87%. This is comparable to the rest of the industry: UVV outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of UVV has grown nicely.
UVV has a Gross Margin of 19.25%. This is in the lower half of the industry: UVV underperforms 62.50% of its industry peers.
UVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.87% | ||
| PM (TTM) | 3.51% | ||
| GM | 19.25% |
OM growth 3Y0.14%
OM growth 5Y2.72%
PM growth 3Y-7.81%
PM growth 5Y-2.99%
GM growth 3Y-1.41%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UVV is destroying value.
Compared to 1 year ago, UVV has more shares outstanding
Compared to 5 years ago, UVV has more shares outstanding
UVV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.70 indicates that UVV is not a great score, but indicates only limited risk for bankruptcy at the moment.
UVV has a better Altman-Z score (2.70) than 62.50% of its industry peers.
The Debt to FCF ratio of UVV is 9.36, which is on the high side as it means it would take UVV, 9.36 years of fcf income to pay off all of its debts.
UVV's Debt to FCF ratio of 9.36 is on the low side compared to the rest of the industry. UVV is outperformed by 62.50% of its industry peers.
UVV has a Debt/Equity ratio of 0.85. This is a neutral value indicating UVV is somewhat dependend on debt financing.
UVV has a better Debt to Equity ratio (0.85) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 9.36 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.75
WACC9.39%
2.3 Liquidity
UVV has a Current Ratio of 2.49. This indicates that UVV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.49, UVV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
UVV has a Quick Ratio of 2.49. This is a bad value and indicates that UVV is not financially healthy enough and could expect problems in meeting its short term obligations.
UVV's Quick ratio of 0.89 is fine compared to the rest of the industry. UVV outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for UVV have decreased strongly by -15.35% in the last year.
The Earnings Per Share has been growing slightly by 5.75% on average over the past years.
UVV shows a small growth in Revenue. In the last year, the Revenue has grown by 4.11%.
UVV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
EPS 1Y (TTM)-15.35%
EPS 3Y2.88%
EPS 5Y5.75%
EPS Q2Q%6401.92%
Revenue 1Y (TTM)4.11%
Revenue growth 3Y11.9%
Revenue growth 5Y9.06%
Sales Q2Q%-0.55%
3.2 Future
The Earnings Per Share is expected to grow by 10.95% on average over the next years. This is quite good.
Based on estimates for the next years, UVV will show a small growth in Revenue. The Revenue will grow by 1.24% on average per year.
EPS Next Y26.56%
EPS Next 2Y10.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.52%
Revenue Next 2Y1.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.99, UVV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of UVV indicates a somewhat cheap valuation: UVV is cheaper than 75.00% of the companies listed in the same industry.
UVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.89.
The Price/Forward Earnings ratio is 11.47, which indicates a very decent valuation of UVV.
UVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UVV is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. UVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
UVV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UVV is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UVV is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 5.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.49
PEG (5Y)2.26
EPS Next 2Y10.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UVV has a Yearly Dividend Yield of 6.13%, which is a nice return.
UVV's Dividend Yield is a higher than the industry average which is at 3.94.
UVV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
5.2 History
The dividend of UVV has a limited annual growth rate of 1.16%.
UVV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
UVV pays out 77.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of UVV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.4%
EPS Next 2Y10.95%
EPS Next 3YN/A
53.4
-0.12 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners85.07%
Inst Owner Change-0.95%
Ins Owners1.53%
Ins Owner Change5.22%
Market Cap1.33B
Revenue(TTM)2.94B
Net Income(TTM)103.41M
Analysts0
Price Target79.56 (48.99%)
Short Float %3.4%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend3.23
Dividend Growth(5Y)1.16%
DP77.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.47 | ||
| P/S | 0.45 | ||
| P/FCF | 10.04 | ||
| P/OCF | 7.21 | ||
| P/B | 0.91 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 5.53 |
EPS(TTM)4.11
EY7.7%
EPS(NY)4.66
Fwd EY8.72%
FCF(TTM)5.32
FCFY9.96%
OCF(TTM)7.41
OCFY13.87%
SpS118.28
BVpS58.61
TBVpS47.8
PEG (NY)0.49
PEG (5Y)2.26
Graham Number73.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.24% | ||
| ROE | 7.09% | ||
| ROCE | 11.62% | ||
| ROIC | 7.03% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 8.33% | ||
| OM | 8.87% | ||
| PM (TTM) | 3.51% | ||
| GM | 19.25% | ||
| FCFM | 4.5% |
ROA(3y)3.98%
ROA(5y)3.81%
ROE(3y)7.91%
ROE(5y)7.37%
ROIC(3y)6.47%
ROIC(5y)6.26%
ROICexc(3y)6.82%
ROICexc(5y)6.64%
ROICexgc(3y)7.71%
ROICexgc(5y)7.56%
ROCE(3y)9.75%
ROCE(5y)9.14%
ROICexgc growth 3Y6.6%
ROICexgc growth 5Y6.51%
ROICexc growth 3Y7.82%
ROICexc growth 5Y5.75%
OM growth 3Y0.14%
OM growth 5Y2.72%
PM growth 3Y-7.81%
PM growth 5Y-2.99%
GM growth 3Y-1.41%
GM growth 5Y-0.14%
F-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 9.36 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 88.29% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.62% | ||
| Profit Quality | 128.04% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.7 |
F-Score4
WACC9.39%
ROIC/WACC0.75
Cap/Depr(3y)104.44%
Cap/Depr(5y)112.55%
Cap/Sales(3y)2.22%
Cap/Sales(5y)2.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.35%
EPS 3Y2.88%
EPS 5Y5.75%
EPS Q2Q%6401.92%
EPS Next Y26.56%
EPS Next 2Y10.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.11%
Revenue growth 3Y11.9%
Revenue growth 5Y9.06%
Sales Q2Q%-0.55%
Revenue Next Year1.52%
Revenue Next 2Y1.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.67%
EBIT growth 3Y12.06%
EBIT growth 5Y12.03%
EBIT Next Year33.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y146.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y65.57%
OCF growth 3Y93.86%
OCF growth 5Y97.43%
UNIVERSAL CORP/VA / UVV FAQ
Can you provide the ChartMill fundamental rating for UNIVERSAL CORP/VA?
ChartMill assigns a fundamental rating of 5 / 10 to UVV.
What is the valuation status of UNIVERSAL CORP/VA (UVV) stock?
ChartMill assigns a valuation rating of 7 / 10 to UNIVERSAL CORP/VA (UVV). This can be considered as Undervalued.
How profitable is UNIVERSAL CORP/VA (UVV) stock?
UNIVERSAL CORP/VA (UVV) has a profitability rating of 5 / 10.
What is the valuation of UNIVERSAL CORP/VA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UNIVERSAL CORP/VA (UVV) is 12.99 and the Price/Book (PB) ratio is 0.91.
How sustainable is the dividend of UNIVERSAL CORP/VA (UVV) stock?
The dividend rating of UNIVERSAL CORP/VA (UVV) is 6 / 10 and the dividend payout ratio is 77.4%.