Universal Corp (UVV) Stock Analysis
Verdict: HOLD
Dividend safety is eroding as severe earnings misses and thin 1.1% margins struggle to cover the 6% yield amid structural tobacco decline.
Investment score: 42/100
Analysis as of
Is Universal Corp stock worth reviewing? AI model thesis
The AI model flags UVV as a 'Value Trap' due to deteriorating earnings quality and an unsustainable valuation multiple relative to its slow-growth peers.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 65/100 (weight 15%)
Universal Corp opportunities and risks
What speaks for UVV
- Diversification into Ingredients segment
What speaks against UVV
- Dividend Sustainability Crisis
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| UVV | 40.4x | 0.4x | 9.4x | 17.5% | 1.1% | 6.1% |
| PM | 25.4x | 6.8x | 18.3x | 67.3% | 26.7% | 3.8% |
| MO | 14.4x | 5.3x | 11.5x | 67.8% | 36.9% | 7.5% |
| TPB | 28.0x | 3.3x | 15.1x | 56.8% | 11.5% | 0.3% |
| ISPR | n/a | 1.2x | n/a | 14.6% | -38.2% | -10.1% |
| PYYX | 6.2x | 0.0x | 4.7x | 14.3% | 0.6% | -267.6% |
| Peer median | 14.4x | 3.3x | 11.5x | 56.8% | 11.5% | 0.3% |
Frequently asked questions about Universal Corp (UVV)
Is UVV stock a good investment?
The cached TradeMates AI model rates Universal Corp as HOLD with an investment score of 42/100. The AI model flags UVV as a 'Value Trap' due to deteriorating earnings quality and an unsustainable valuation multiple relative to its slow-growth peers. This is algorithmic model output, not personal investment advice.
Is UVV stock a buy?
The TradeMates model verdict for UVV is HOLD with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.