Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Universal Corporation (UVV)

Company Dividend Discount ModelIndustry: TobaccoSector: Consumer Defensive

Valuation Snapshot

Stable Growth$142.18 - $744.64$256.34
Multi-Stage$143.96 - $157.80$150.75
Blended Fair Value$203.55
Current Price$55.87
Upside264.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS1.12%5.35%3.173.123.083.042.993.002.782.171.981.88
YoY Growth--1.64%1.31%1.25%1.67%-0.25%7.85%27.76%9.78%5.15%0.11%
Dividend Yield--5.44%6.54%6.16%5.02%5.25%7.05%4.52%3.29%3.06%3.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)111.64
(-) Cash Dividends Paid (M)69.94
(=) Cash Retained (M)41.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22.3313.968.37
Cash Retained (M)41.7141.7141.71
(-) Cash Required (M)-22.33-13.96-8.37
(=) Excess Retained (M)19.3827.7533.33
(/) Shares Outstanding (M)25.1525.1525.15
(=) Excess Retained per Share0.771.101.33
LTM Dividend per Share2.782.782.78
(+) Excess Retained per Share0.771.101.33
(=) Adjusted Dividend3.553.884.11
WACC / Discount Rate5.93%5.93%5.93%
Growth Rate3.35%4.35%5.35%
Fair Value$142.18$256.34$744.64
Upside / Downside154.49%358.82%1,232.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)111.64116.50121.56126.84132.35138.11142.25
Payout Ratio62.64%68.11%73.59%79.06%84.53%90.00%92.50%
Projected Dividends (M)69.9479.3589.45100.28111.88124.29131.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.93%5.93%5.93%
Growth Rate3.35%4.35%5.35%
Year 1 PV (M)74.1974.9175.63
Year 2 PV (M)78.2079.7281.26
Year 3 PV (M)81.9784.3786.82
Year 4 PV (M)85.5088.8692.32
Year 5 PV (M)88.8293.2097.75
PV of Terminal Value (M)3,212.573,371.033,535.69
Equity Value (M)3,621.253,792.103,969.46
Shares Outstanding (M)25.1525.1525.15
Fair Value$143.96$150.75$157.80
Upside / Downside157.67%169.83%182.45%

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