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Universal Corporation
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$1.0B
Market Cap
40.5
P/E
3.00
PEG
3.9%
ROCE
3.8%
ROE
0.64
D/E
5.8%
OPM
-27.1%
% from 52W High
26
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for UVV including FX impact
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📈 Price History
Ratio Health
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About

Universal Corporation, a business-to-business agriproducts company, provides leaf tobacco and plant-based ingredients to food and beverage end markets worldwide. The company operates in two segments, Tobacco Operations and Ingredients Operations. The Tobacco Operations segment is involved in procuring, processing, packing of flue-cured, burley, dark air-cured, and oriental leaf tobacco for consumer product manufacturers, as well as provision of related services. This segment also offers specialty services, such as custom blending, chemical and physical testing of tobacco, service cutting, reconstituted leaf tobacco manufacturing, and just-in-time product delivery services; and liquid nicotine for tobacco products manufacturers, as well as recycled waste materials from tobacco production. The Ingredients Operations segment engages in the production of specialty plant-based ingredients, including fruits, vegetables, herbs, fruit and vegetable juices, concentrates, pomaces, ciders, purees, nutraceuticals, fruit fibers, seeds, seed powders, dehydrated products, botanical extracts, distillates, natural flavors, colors, and other value-added products for consumer-packaged goods manufacturers and retailers, as well as food, and beverage companies. The company was founded in 1918 and is headquartered in Richmond, Virginia.

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📈 Growth Pattern
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⭐ Superinvestors Holding UVV
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 80.1K $4.2M 0.01% Mar 2026
Steve Cohen Point72 Asset Management 46.1K $2.4M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Universal Corp Q4 FY26: Revenue $715M, net loss $43M, tobacco segment $632M
Revenue & Profitability
Q4 fiscal 2026 consolidated revenue was $715 million, up 2% year-over-year. Full-year revenue was $2.9 billion, down slightly. Q4 operating loss was $15 million vs. income of $43 million last year; full-year operating income was $169 million, down $64 million. Net loss attributable to Universal was $43 million for Q4 and $33 million for the full year, impacted by a $41 million non-cash goodwill impairment and $43 million in tobacco inventory write-downs.
Outlook
Management sees oversupply in certain tobacco styles carrying into fiscal 2027, with large crops globally in flue-cured and burley tobacco. Market headwinds persist in the ingredients business, including inflationary pressures and tariffs. However, the company expects to manage oversupply through its geographic footprint, customer relationships, and disciplined buying, and anticipates possible tariff normalization could reduce customer headwinds.
Growth Drivers
Key growth levers include maximizing and optimizing the tobacco business through market share and volume growth and new service opportunities. In ingredients, growth is driven by a strategy centered on clean label, healthy, organic, and solution-based products. The company is investing in commercial effectiveness and operational efficiency at Shank's, a key component of the ingredients platform.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Margins were pressured in fiscal 2026 by inventory write-downs in non-wrapper dark air-cured tobacco ($43 million vs. $19 million in FY25) and a $41 million goodwill impairment in Shank's. The tobacco segment operating income was $212 million vs. $240 million prior year. Management is focused on cost control, improving facility utilization, and converting strategic intent into financial performance.
Key Risks
Risks flagged include oversupply in tobacco styles (especially non-wrapper dark air-cured), leading to inventory write-downs. Market headwinds in the ingredients business (inflation, tariffs) pressure volumes and margins. The Shank's operation faces execution risk in converting customer interest into sustained revenue and margin growth. Management also noted the risk that customers have built up inventory during past under-supply years.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-08-06
First quarter results showed a 12% revenue decline and a net loss, driven by tobacco market oversupply and persistent headwinds in the ingredients segment. Management expects normalization in margins and inventory levels, with full-year demand in line with the sales plan.
Q4 2026 Q4 2026 2026-05-29
Fiscal 2026 results were impacted by a $41M goodwill impairment at Shank's and higher tobacco inventory write-downs, leading to lower net income. Despite market headwinds, the business remains confident in its strategies and capital allocation priorities.
Q3 2026 Q3 2026 2026-02-09
Third quarter results showed lower revenue and income year-over-year, with tobacco segment performance remaining strong despite a shift to oversupply, and the ingredients segment facing margin pressure from higher costs and tariffs. Liquidity improved after refinancing, and sustainability progress was highlighted.
Q2 2026 Q2 2026 2025-11-06
Revenue and operating income grew year-over-year in the first half, driven by strong tobacco and ingredients sales, though Q2 operating income dipped slightly due to FX and inventory write-downs. The company expects to manage a shift to tobacco oversupply and continues to invest in sustainability and growth.
Q1 2026 Q1 2026 2025-08-07
Operating income doubled year-over-year to $34M despite a slight revenue dip, driven by a favorable product mix in tobacco. Ingredients segment saw higher sales but lower margins due to mix and tariffs. Oversupply risk and tariff uncertainty remain, but strong customer demand and disciplined inventory management support a positive outlook.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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