Universal Corporation
Find Ratings ReportsUNIVERSAL CORP/VA's gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. UNIVERSAL CORP/VA has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.13% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 821.51 | 795.04 |
EBITDA ($mil) | 103.22 | 92.08 |
EBIT ($mil) | 88.39 | 77.53 |
Net Income ($mil) | 53.22 | 41.66 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 74.1 | 71.28 |
Total Assets ($mil) | 2833.87 | 2764.9 |
Total Debt ($mil) | 1015.01 | 1003.01 |
Equity ($mil) | 1417.08 | 1360.79 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 22.13 | 20.13 |
EBITDA Margin | 12.56 | 11.58 |
Operating Margin | 10.76 | 9.75 |
Sales Turnover | 0.94 | 0.91 |
Return on Assets | 4.69 | 3.47 |
Return on Equity | 9.38 | 7.06 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 3.22 | 3.26 |
Debt/Capital | 0.42 | 0.42 |
Interest Expense | 15.53 | 14.27 |
Interest Coverage | 5.69 | 5.43 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 24.56 | 24.56 |
Div / share | 0.8 | 0.79 |
EPS | 2.12 | 1.67 |
Book value / share | 57.71 | 55.42 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 239167.0 | 169768.0 |
BUY. UNIVERSAL CORP/VA's P/E ratio indicates a significant discount compared to an average of 23.56 for the Merchant Wholesalers, Nondurable Goods subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 0.87 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 20.75. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, UNIVERSAL CORP/VA proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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UVV 9.42 | Peers 23.56 | UVV 9.71 | Peers 12.26 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. UVV is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. UVV is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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UVV NA | Peers 14.94 | UVV NA | Peers 1.03 | |||||||||||||||||||||
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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UVV 0.87 | Peers 20.75 | UVV 37.92 | Peers 39.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. UVV is trading at a significant discount to its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. UVV is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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UVV 0.46 | Peers 0.57 | UVV 5.90 | Peers 2.59 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. UVV is trading at a discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. UVV has a sales growth rate that significantly exceeds its peers. |
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