Lumida
/UVV
⌘K
Universal Corp

Universal Corp

UVV
$45.18USD↓-0.33%-0.15 today

MARKET CAP

1.1B

P/E (TTM)

13.3x

FWD P/E

—

DAY RANGE

$45 – $46

52W RANGE

$43
$59

AI Summary

Stalk
StalkMedium

Despite a sustained long-term downtrend, the Post-Capitulation mean-reversion pattern indicates selling exhaustion and a potential bounce from oversold levels. However, price remains stuck below declining 9/20 EMAs without clear acceptance above the 20-day EMA resistance. Under the Stable strategy’s patient, structure-first approach, bullish execution is deferred until a definitive breakout above EMA resistance or a pullback into the established support zone offers a cleaner entry.

  • ↑Q4 revenue +2% YoY at $715M, driven by flu-cured and burley tobacco
  • ↑Ingredients revenue reached $265.2M, reflecting demand for health-oriented products
  • ↓Q4 operating loss of $15M and $43M inventory write-downs signal margin pressure
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Universal Corporation (NYSE: UVV) is a global leader in the processing and marketing of leaf tobacco and plant-based ingredients. The company operates through its Tobacco and Ingredients segments, positioning itself to benefit from both traditional tobacco demand and growth opportunities in ingredient innovations, aligning with current market trends toward healthier, organic products. With a focus on diversification and sustainability, Universal aims to remain a dominant player amidst evolving agricultural dynamics.

Bull says

  • ↑Q4 revenue +2% YoY at $715M, driven by flu-cured and burley tobacco
  • ↑Ingredients revenue reached $265.2M, reflecting demand for health-oriented products
  • ↑Corporate credit facility upsized by $250M, preserving liquidity for growth
  • ↑Dividend yield 6.1% with consecutive annual increases, supporting income investors
  • ↑Net-zero emissions target by 2050 with renewable energy investments boosting ESG profile
  • ↑High earnings yield and strong momentum suggest undervaluation and upside potential

Bear says

  • ↓Q4 operating loss of $15M and $43M inventory write-downs signal margin pressure
  • ↓Net debt rose to $995M, elevating interest expense and leverage risk
  • ↓Ingredients op income fell from $7.9M to $1.4M due to high fixed costs
  • ↓Tobacco market oversupply may drive price cuts and further compress margins
  • ↓Negative profitability and revisions scores point to muted earnings outlook
  • ↓Poor QS and 13F ownership scores imply balance sheet vulnerability and weak institutional demand

Investment themes with UVV

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2024 · Mgmt. Guidance

Updated 11-10-2025bullish

Transcript signals

Bull points

  • Our fiscal year 2024 is developing very well with operating income for the six months and quarter ended September 30th, 2023, up 30% and 46% respectively compared to the six months and quarter ended September 30th, 2022.
  • Gross profit margins also rebounded nicely in the first half of fiscal year 2024 compared to the same period in fiscal year 2023 with our ingredients companies making a positive contribution.
  • Strong demand for leaf tobacco from our customers and a favorable tobacco product mix benefited our results for the first half of fiscal year 2024.

Bear points

  • Selling, general, and administrative expenses were up $10.5 million in the first half of fiscal year 2024 compared to the first half of fiscal year 2023.
  • Interest expense was up over $13 million, primarily on higher interest rates, and green tobacco prices were also higher.
Read full transcript analysis ›