Universal Corp. (UVV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Philip Morris International, Inc.

Vector Group Ltd.

Altria Group, Inc.

Turning Point Brands, Inc.

Universal Corp.

Hempacco Co., Inc.

Why is Universal Corp. ?

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Jun 25

NET PROFIT(HY) At USD 28.56 MM has Grown at -25.34%
ROCE(HY) Lowest at 7.2%
NET SALES(Q) Lowest at USD 593.76 MM

With ROCE of 10.70%, it has a very attractive valuation with a 1.02 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.99%, its profits have fallen by -5.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.99% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Universal Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Universal Corp.

-11.52%

0.53

25.60%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.82%

EBIT Growth (5y)

8.15%

EBIT to Interest (avg)

5.37

Debt to EBITDA (avg)

2.89

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

1.12

Tax Ratio

26.55%

Dividend Payout Ratio

85.66%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.25%

ROE (avg)

8.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

10.27

EV to EBITDA

8.25

EV to Capital Employed

0.93

EV to Sales

0.80

PEG Ratio

Dividend Yield

ROCE (Latest)

9.08%

ROE (Latest)

7.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.84

INVENTORY TURNOVER RATIO(HY)

Highest at 2.03 times

-25What is not working for the Company

ROCE(HY)

Lowest at 2.27%

INTEREST COVERAGE RATIO(Q)

Lowest at 218.88

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 18.19% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.84 times

OPERATING PROFIT(Q)

Lowest at USD 40.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.7 %

PRE-TAX PROFIT(Q)

Lowest at USD 12.55 MM

NET PROFIT(Q)

Lowest at USD -0.78 MM

EPS(Q)

Lowest at USD -1.73

Here's what is working for Universal Corp.

Dividend per share

Highest at USD 4.84 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Inventory Turnover Ratio

Highest at 2.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Universal Corp.

Pre-Tax Profit

At USD 12.55 MM has Fallen at -65.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.78 MM has Fallen at -103.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 218.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 40.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 5.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 12.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -0.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -1.73

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 4.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 18.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales