-0.02%
-2.41%
5.11%
0.19%
-7.64%
-1.67%
0.70%

Company Description

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide.The company operates through two segments, Tobacco Operations and Ingredients Operations.It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products.


The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products.It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers.In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke.


Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production.The company was founded in 1886 and is headquartered in Richmond, Virginia.

Market Data

Last Price 53.52
Change Percentage -0.02%
Open 53.65
Previous Close 53.53
Market Cap ( Millions) 1322
Volume 132034
Year High 59.91
Year Low 45.19
M A 50 54.36
M A 200 51.83

Financial Ratios

FCF Yield -7.87%
Dividend Yield 6.04%
ROE 8.62%
Debt / Equity 86.71%
Net Debt / EBIDTA 368.55%
Price To Book 0.94
Price Earnings Ratio 10.93
Price To FCF -12.71
Price To sales 0.47
EV / EBITDA 8.02

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Tobacco

Expected Growth : 8 %

What the company do ?

Universal Corporation's tobacco segment involves the procurement, processing, and sale of tobacco products, including flue-cured, burley, and oriental tobaccos.

Why we expect these perspectives ?

Universal Corporation's 8% growth in Tobacco segment is driven by increasing demand for smokeless tobacco products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on cost savings initiatives and productivity enhancements has improved operating efficiency, contributing to the growth.

Segment nΒ°2 -> Ingredients

Expected Growth : 12 %

What the company do ?

Universal Corporation's Ingredients segment offers a range of natural and specialty ingredients for food, beverage, and pharmaceutical industries.

Why we expect these perspectives ?

Universal Corporation's 12% growth in ingredients is driven by increasing demand for natural and organic products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and innovation in tobacco-free nicotine products contributes to its growth momentum.

Universal Corporation Products

Product Range What is it ?
Tobacco Universal Corporation is a leading global tobacco leaf supplier, providing high-quality tobacco to manufacturers of cigarettes and other tobacco products.
E-Liquids Universal Corporation offers a range of e-liquids for use in electronic cigarettes and vaping devices.
Plant-Based Ingredients Universal Corporation provides plant-based ingredients for use in food, beverage, and pharmaceutical applications.
Recyclable Materials Universal Corporation offers recyclable materials for use in packaging and other industrial applications.
Agricultural Products Universal Corporation provides agricultural products, including seeds, fertilizers, and crop protection products.

Universal Corporation's Porter Forces

The threat of substitutes for Universal Corporation is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

The bargaining power of customers is high, as they have many options available and can easily switch to competitors if they are not satisfied with the products or services of Universal Corporation.

The bargaining power of suppliers is low, as Universal Corporation is a large company and has many suppliers to choose from, giving it the upper hand in negotiations.

The threat of new entrants is moderate, as there are some barriers to entry in the industry, but it is still possible for new companies to enter the market.

The intensity of rivalry is high, as there are many competitors in the industry and they are all competing for market share.

Capital Structure

Value
Debt Weight 42.10%
Debt Cost 7.68%
Equity Weight 57.90%
Equity Cost 7.77%
WACC 7.73%
Leverage 72.71%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CHSCP CHS Inc., an integrated agricultural company, provides grains, foods, and energy resources to businesses and consumers in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. …
VLGEA Village Super Market, Inc. operates a chain of supermarkets in the United States. Its stores feature specialty departments, such as an on-site bakery, an expanded delicatessen; and various natural and …
MO Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe …
TPB Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker's Products, and NewGen Products. The Zig-Zag …
VGR Vector Group Ltd., through its subsidiaries, manufactures and sells cigarettes in the United States. It operates in two segments, Tobacco and Real Estate. The company produces cigarettes in 100 combinations …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
53.52$
Current Price
53.52$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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