Home Sectors Consumer Defensive Present Valuation: Universal Corporation (NYSE: UVV)

Present Valuation: Universal Corporation (NYSE: UVV)

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Universal Corporation trades as part of the tobacco products industry and trades as part of the consumer defensive sector. The company CEO is George C. Freeman. Universal Corp is a leaf tobacco supplier. It is engaged in procuring and processing flue-cured and burley leaf tobacco for manufacturers of consumer tobacco products.

Previous Intraday Trading Performance:

The UVV stock showed a previous change of 1.72% with an open at 59.54 and a close of 60.30. It reached an intraday high of 60.61 and a low of 59.15.

SeekingAlpha:  Universal Corporation: Creating Potential Treasure In Tobacco

Liquidity:

The stock has a market cap of $1.5b with 25.0m shares outstanding, of which the float is 23.9m shares. Trading volume reached 206,072 shares compared to its average volume of 187,643 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Universal Corporation shares returned -0.35% and in the past 30 trading days it returned 14.07%. Over three months, it changed 2.37%. In one year it has changed -2.42% and within that year its 52-week high was 76.98 and its 52-week low was 50.67. UVV stock is 19.01% above its 52 Week Low.

Our calculations show a 200 day moving average of 58.62 and a 50 day moving average of 55.16. Currently UVV stock is trading 2.86% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Universal Corporation: Creating Potential Treasure In Tobacco

Earnings:

The last annual fiscal EPS for the company was reported at 4.11 that ended on 31st of March 2019, which according to the previous close, that is a PE of 14.67.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/22/2019): 1.24
4thQtr of 2018 (Reported on 02/07/2019): 1.11
3rdQtr of 2018 (Reported on 11/08/2018): 1.24
2ndQtr of 2018 (Reported on 08/07/2018): 0.52
1stQtr of 2018 (Reported on 05/23/2018): 1.20

The dividend per share is currently 3.04, which is a dividend yield of 5.13%. UVV stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 48.77, which means it may be overvalued by -23.63%.

Indicators to Watch:

Short-interest was 534,002, which was 2.14% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.88. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.71.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 7.77%, return on assets is 4.84%, profit margin is 4.95%, price-to-sales is 0.67 and price-to-book is 1.11.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 1  :Past Performance Score
 5  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.