Universal Corp (UVV)

Over the past six months, Universal Corp. experienced a stock price decline of 3.82%. Key events include the CFO's retirement announcement in July 2025, solid Q1 fiscal year 2026 results driven by a favorable product mix in Asia, and an embezzlement investigation that led to delayed filings. The company also reported Q2 fiscal year 2026 results with increased revenue and net income, completed a credit facility refinancing, and announced quarterly dividends.

Universal Corporation's tobacco business experiences seasonality, with negative free cash flow in the first half of the fiscal year due to inventory building and working capital extension. Cash collection accelerates in the second half, leading to positive free cash flow for the full year. Customer demand for tobacco has remained firm, and shipments are progressing smoothly.

Universal Corporation is a global agri-products company operating in the Consumer Staples sector, specifically in Tobacco, Wholesale-Farm Product Raw Materials, and Food, Beverage & Tobacco. The company sources, processes, and supplies agricultural raw materials. It operates through two segments: Tobacco Operations, which handles leaf tobacco and related services, and Ingredients Operations, which produces specialty plant-based ingredients.

Universal Corporation operates in over 30 countries across five continents, connecting farmers and communities worldwide with various industries.

Universal Corporation's brand reputation was impacted by an internal investigation into embezzlement by a former senior finance employee at its Mozambique subsidiary, leading to postponed earnings releases and potentially affecting investor confidence.

Universal Corporation's ownership is primarily institutional, with major holders including BlackRock, The Vanguard Group, and Dimensional Fund Advisors LP. The largest individual shareholder is CEO George C. Freeman III. The general public holds a smaller stake.