| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 60.2x | 17.8x | Top tier | |
Growth | 39 | -3.5% | 7.1% | Bottom tier | |
Quality | 48 | 4.2% | 4.5% | Around median | |
Safety | 45 | 5.5x | 2.6x | Around median | |
Capital Return | 38 | 7.26% | 2.12% | Bottom tier | |
Momentum | 27 | -6.8% | 2.9% | Bottom tier | |
Sentiment | 21 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Universal Corporation operates primarily in purchasing, processing, and selling leaf tobacco through a broad geographic network and long-standing customer relationships, and describes itself as a leader in this market with more than 100 years of experience. Alongside its core business, it established the Universal Ingredients platform through three acquisitions, comprising the Shank's, FruitSmart, and Silva businesses, and focusing on plant-based, organic, and clean-label products and innovative solutions. In Q4 fiscal 2026, tobacco represented approximately 88% of the segment revenue reported on the earnings call, with revenue of $632 million, compared with $83 million, or approximately 12%, for the food ingredients segment.
According to EDGAR data, Q4 fiscal 2026 revenue was approximately $689.9 million, and gross profit was $73.1 million, equivalent to a gross margin of approximately 10.6%, while the company recorded a net loss of $43.3 million. The earnings call reported consolidated revenue of $715 million, up 2% year over year, but the operating result turned into a loss of $15 million compared with operating income of $43 million in the corresponding period. Results were affected by a $41 million non-cash impairment of Shank's goodwill, in addition to write-downs of non-wrapper dark air-cured tobacco inventory.
In fiscal 2026, revenue was $2.9 billion and gross profit was $472.6 million, with a gross margin of approximately 16.3%, while net income declined to $32.6 million and earnings per share to $1.3. Annual operating income was $169 million, down $64 million from fiscal 2025, while net income reported on the call fell to $33 million from $95 million. The tobacco segment generated annual revenue of $2.6 billion and operating income of $212 million, while the food ingredients segment recorded revenue of $348 million and limited operating income of $3 million.
Automated analysis for informational purposes only — not investment advice.
The stock carries a consensus Buy rating, but the available data does not include a consensus price target or a range between the highest and lowest targets that can be used as a fixed reference. The 52-week range extends from $43.36 to $59.38, while no reported P/E ratio is available; weak fiscal 2026 net income, the $41 million Shank's goodwill impairment, and the $43 million in inventory write-downs represent important financial reasons for the wide valuation range despite analysts' positive rating.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Universal processes and sells leaf tobacco through a global network of sourcing regions and customers, and describes its business as a market leader with more than 100 years of experience. The tobacco segment generated revenue of $2.6 billion and operating income of $212 million in fiscal 2026. It also operates the Universal Ingredients platform, which comprises Shank's, FruitSmart, and Silva and focuses on plant-based, organic, and clean-label products.
The company recorded a net loss of $43.3 million in Q4 fiscal 2026, compared with net income of $9 million in the corresponding period according to the earnings call. Pressures included a $41 million non-cash impairment of Shank's goodwill and write-downs of non-wrapper dark air-cured tobacco inventory. Tobacco segment operating income also declined during that quarter to $27 million from $46 million, while food ingredients segment income fell to $2 million from $4 million.
Inventory not committed to sales obligations stood at 27% on March 31, 2026, as the market shifted from undersupply to balance and then oversupply during fiscal 2026. Tobacco inventory write-downs rose to $43 million in fiscal 2026, compared with $19 million in fiscal 2025 and a five-year average of $14 million. Management targets reducing the uncommitted inventory ratio to a range of 10%–20% during fiscal 2027, but achieving this depends on demand, crop movements, and customer requirements.
The food ingredients segment generated revenue of $348 million in fiscal 2026, up 3%, but its operating income declined to $3 million from $12 million. The main issue came from Shank's, where market conditions pressured core products and new product development, and the company recorded a $41 million goodwill impairment. The plan during fiscal 2027 focuses on increasing facility utilization and improving commercial execution and operating efficiency, while FruitSmart and Silva performed in line with management's expectations in fiscal 2026.
In fiscal 2026, Universal announced its 56th consecutive annual dividend increase, reflecting a clear priority within its capital allocation policy. The payout ratio exceeded 100% of reported net income in fiscal 2026, although management said it remained below 75% based on adjusted net income over the previous five years. Available liquidity exceeded $1.2 billion on March 31, 2026, but net debt rose to $845 million, so the sustainability of coverage depends on an earnings recovery and improved working capital.
Investors should monitor whether uncommitted inventory reaches management's target range of 10%–20% after standing at 27% on March 31, 2026. They should also follow whether the leadership reorganization within Shank's increases capacity utilization and converts the product pipeline into revenue and margin growth. The performance of flue-cured and burley will also be important, because management indicated on May 29, 2026 that large crops and excess supply persisted across global production regions.
