UNIVERSAL CORP/VA (UVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UVV - US9134561094 - Common Stock
55.17 USD
+0.49 (+0.9%)
55.17 USD
0 (0%)
UVV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. Both the profitability and the financial health of UVV get a neutral evaluation. Nothing too spectacular is happening here. UVV scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally UVV also has an excellent dividend rating.
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.
- UVV had positive earnings in each of the past 5 years.
- In multiple years UVV reported negative operating cash flow during the last 5 years.
1.2 Ratios
- UVV has a Return On Assets (3.64%) which is comparable to the rest of the industry.
- UVV has a Return On Equity of 7.59%. This is amongst the best in the industry. UVV outperforms 87.50% of its industry peers.
- With a decent Return On Invested Capital value of 6.93%, UVV is doing good in 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 14.25%.
- The last Return On Invested Capital (6.93%) for UVV is above the 3 year average (6.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 7.59% | ||
| ROIC | 6.93% |
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
- UVV has a worse Profit Margin (3.74%) than 62.50% of its industry peers.
- UVV's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 8.35%, UVV is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of UVV has grown nicely.
- With a Gross Margin value of 18.86%, UVV is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- UVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.35% | ||
| PM (TTM) | 3.74% | ||
| GM | 18.86% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UVV is destroying value.
- UVV has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for UVV has been increased compared to 5 years ago.
- Compared to 1 year ago, UVV has a worse debt to assets ratio.
2.2 Solvency
- UVV has an Altman-Z score of 2.85. This is not the best score and indicates that UVV is in the grey zone with still only limited risk for bankruptcy at the moment.
- UVV has a Altman-Z score of 2.85. This is in the better half of the industry: UVV outperforms 75.00% of its industry peers.
- The Debt to FCF ratio of UVV is 7.37, which is on the high side as it means it would take UVV, 7.37 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 7.37, UVV perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- UVV has a Debt/Equity ratio of 0.79. This is a neutral value indicating UVV is somewhat dependend on debt financing.
- UVV has a Debt to Equity ratio of 0.79. This is in the better half of the industry: UVV outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 7.37 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.76
WACC9.17%
2.3 Liquidity
- UVV has a Current Ratio of 2.70. 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 2.70, 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 2.70. 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 (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- UVV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.89%.
- Measured over the past 5 years, UVV shows a small growth in Earnings Per Share. The EPS has been growing by 5.75% on average per year.
- UVV shows a small growth in Revenue. In the last year, the Revenue has grown by 3.01%.
- The Revenue has been growing by 9.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.89%
EPS 3Y2.88%
EPS 5Y5.75%
EPS Q2Q%31.5%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y11.9%
Revenue growth 5Y9.06%
Sales Q2Q%6.11%
3.2 Future
- Based on estimates for the next years, UVV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.95% on average per year.
- The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y26.56%
EPS Next 2Y10.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.21%
Revenue Next 2Y2.11%
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
- Based on the Price/Earnings ratio of 12.43, the valuation of UVV can be described as correct.
- Based on the Price/Earnings ratio, UVV is valued a bit cheaper than 75.00% of the companies in the same industry.
- UVV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 11.85, the valuation of UVV can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of UVV indicates a somewhat cheap valuation: UVV is cheaper than 75.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. UVV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UVV indicates a rather cheap valuation: UVV is cheaper than 100.00% of the companies listed in the same industry.
- 100.00% 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 | 8.75 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
- UVV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.47
PEG (5Y)2.16
EPS Next 2Y10.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.01%, UVV is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.36, UVV pays a better dividend. On top of this UVV pays more dividend than 87.50% of the companies listed in the same industry.
- UVV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
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 72.07% 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.
DP72.07%
EPS Next 2Y10.95%
EPS Next 3YN/A
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 for UVV stock?
ChartMill assigns a valuation rating of 7 / 10 to UNIVERSAL CORP/VA (UVV). This can be considered as Undervalued.
What is the profitability of UVV stock?
UNIVERSAL CORP/VA (UVV) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for UVV stock?
The Earnings per Share (EPS) of UNIVERSAL CORP/VA (UVV) is expected to grow by 26.56% in the next year.
Can you provide the dividend sustainability for UVV stock?
The dividend rating of UNIVERSAL CORP/VA (UVV) is 7 / 10 and the dividend payout ratio is 72.07%.