UNIVERSAL CORP/VA (UVV) Stock Fundamental Analysis
USA - NYSE:UVV - US9134561094 - Common Stock
56.29 USD
+1.36 (+2.48%)
56.29 USD
0 (0%)
Taking everything into account, UVV scores 4 out of 10 in our fundamental rating. UVV was compared to 8 industry peers in the Tobacco industry. There are concerns on the financial health of UVV while its profitability can be described as average. UVV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UVV was profitable.
In the past year UVV had a positive cash flow from operations.
In the past 5 years UVV has always been profitable.
In multiple years UVV reported negative operating cash flow during the last 5 years.
1.2 Ratios
UVV has a Return On Assets of 3.24%. This is comparable to the rest of the industry: UVV outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.09%, UVV belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
UVV has a better Return On Invested Capital (7.03%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UVV is significantly below the industry average of 14.45%.
The 3 year average ROIC (6.47%) for UVV is below the current ROIC(7.03%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 3.51%, UVV is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of UVV has declined.
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.
Looking at the Gross Margin, with a value of 19.25%, UVV is doing worse than 62.50% of the companies in the same industry.
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
UVV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UVV has more shares outstanding than it did 1 year ago.
UVV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UVV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.72 indicates that UVV is not a great score, but indicates only limited risk for bankruptcy at the moment.
UVV has a Altman-Z score of 2.72. This is in the better half of the industry: UVV outperforms 75.00% of its industry peers.
UVV has a debt to FCF ratio of 9.36. This is a negative value and a sign of low solvency as UVV would need 9.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.36, UVV is doing worse than 62.50% of the companies in the same industry.
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 | 2.72 |
ROIC/WACC0.92
WACC7.66%
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.
With a decent Current ratio value of 2.49, UVV is doing good in 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.
The Quick ratio of UVV (0.89) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
UVV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.35%.
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%.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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
UVV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.95% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.70 indicates a correct valuation of UVV.
Based on the Price/Earnings ratio, UVV is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.54. UVV is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.09, UVV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UVV indicates a somewhat cheap valuation: UVV is cheaper than 62.50% of the companies listed in the same industry.
UVV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UVV is valued cheaper than 100.00% of the companies in the same industry.
87.50% of the companies in the same industry are more expensive than UVV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | 5.75 |
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)0.52
PEG (5Y)2.38
EPS Next 2Y10.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.97%, UVV is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.86, UVV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, UVV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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.
UVV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.4%
EPS Next 2Y10.95%
EPS Next 3YN/A
56.29
+1.36 (+2.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners85.07%
Inst Owner Change-1.14%
Ins Owners1.53%
Ins Owner Change5.7%
Market Cap1.40B
Analysts0
Price Target79.56 (41.34%)
Short Float %2.94%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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)8.33%
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.09 | ||
| P/S | 0.48 | ||
| P/FCF | 10.58 | ||
| P/OCF | 7.6 | ||
| P/B | 0.96 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 5.75 |
EPS(TTM)4.11
EY7.3%
EPS(NY)4.66
Fwd EY8.27%
FCF(TTM)5.32
FCFY9.45%
OCF(TTM)7.41
OCFY13.16%
SpS118.28
BVpS58.61
TBVpS47.8
PEG (NY)0.52
PEG (5Y)2.38
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%
ROICexcg growth 3Y6.6%
ROICexcg 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 | 2.72 |
F-Score4
WACC7.66%
ROIC/WACC0.92
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%