Universal Stock Analysis, Valuation (NYSE:UVV)

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$65.7 $0.9 (1.39%) UVV stock closing price Jul 20, 2018 (Closing)

Take a look at Amigobulls Universal stock analysis video. Our analyst opinion covering the buy and sell arguments for UVV stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Universal Corp Stock Rating 3.7/5

Amigobulls UVV stock analysis uses latest quarter 2018 Q4 financial data like Universal revenue growth, profit margins and cash flows. Universal valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Universal stock rating which is indicative of the company's financial performance.

Should you buy UVV stock?

  • With its debt/equity ratio of 0.3, Universal has a lower debt burden when compared to the Consumer Staples average.
  • The company has an operating cash flow which is 4.3447 times the net income.
  • The Universal stock currently trades at a price to earnings ratio of 16.5, compared to the sector average of 21.7. We rate this as a positive.
  • When compared with the Consumer Staples sector average PS ratio of 1.7, the price-to-sales ratio of 0.8 for UVV stock is attractive.
  • The company has a healthy free cash flow margin of 20.1.

Should you sell UVV stock?

  • Revenue declined at a CAGR of -3.7 over the last 5 years.
  • The TTM ROE (Return On Equity) for Universal is not so attractive at 7.8.

Comments on this video and Universal stock

Amigobulls Universal stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Universal revenue growth and profit or net income are two main metrics which help in identifying whether UVV stock is overvalued or undervalued. Investors could make use of UVV technical analysis to check whether the fundamental story is reflected in the market sentiment.