Universal Corporation Stock Fair Value – Susquehanna Portfolio Strategies LLC drastically reduces stake in Universal Co. by 73.7% in Q2
October 3, 2024
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Universal Corporation ($NYSE:UVV) is a global leader in the tobacco industry, providing a wide range of products and services to tobacco growers and manufacturers around the world. With over a century of experience, the company has established itself as a trusted partner in the tobacco supply chain, with operations spanning from leaf sourcing and processing to sales and marketing. Despite its long history and prominent position in the industry, Universal Corporation has recently experienced a significant decrease in stake from one of its major shareholders, Susquehanna Portfolio Strategies LLC. This news was revealed in a recent filing with the Securities and Exchange Commission, which reported that Susquehanna reduced its holdings in Universal Co. by 73.7% during the second quarter. This drastic reduction in stake by a major shareholder is certainly a cause for concern for Universal Corporation and its investors. The decision by Susquehanna to reduce its holdings by such a significant amount raises questions about the company’s financial performance and potential future prospects. It is not uncommon for large institutional investors to periodically adjust their holdings in various companies, but a decrease of this magnitude is certainly noteworthy. This news may also have an impact on the overall market sentiment towards Universal Corporation. With one of its major shareholders significantly reducing their stake, other investors may become more cautious about their investments in the company. This could potentially lead to a decrease in the stock price of Universal Corporation, as well as affect future investment decisions.
Additionally, it is worth considering that this decrease in stake may have been driven by factors unrelated to Universal Corporation’s performance, such as portfolio diversification or strategic reallocation of assets. In conclusion, the recent filing by Susquehanna Portfolio Strategies LLC regarding their reduced stake in Universal Corporation has raised questions and concerns about the company’s financial performance and market sentiment. It will be important to closely monitor any further developments and updates from both companies to gain a better understanding of the reasons behind this significant change in holdings.
Analysis – Universal Corporation Stock Fair Value
As an analyst, I have conducted a thorough analysis of UNIVERSAL CORPORATION‘s financials and overall wellbeing. Based on my findings, I have determined that the fair value of their shares is around $60.9, which has been calculated using our proprietary Valuation Line. This indicates that the current stock price of UNIVERSAL CORPORATION, at $51.83, is undervalued by approximately 14.9%. To reach this conclusion, I have taken into consideration various factors such as the company’s revenue growth, profitability, and financial health. Overall, UNIVERSAL CORPORATION has shown steady growth in their revenue over the years and has maintained a strong financial position. Their profitability has also been consistent, with a healthy return on equity. Furthermore, I have assessed the company’s industry and competitive landscape, as well as their future prospects and potential risks. Based on this analysis, I am confident in my valuation of UNIVERSAL CORPORATION’s stock. In summary, my analysis shows that UNIVERSAL CORPORATION is a well-managed company with solid financials and growth potential. At its current stock price, it presents a good investment opportunity for potential investors looking for undervalued stocks. However, as with any investment, careful consideration of market conditions and individual risk tolerance is always important before making a decision to invest. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Universal Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.67k | 132.99 | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Universal Corporation. More…
| Operations | Investing | Financing |
| 126.56 | -57.84 | -66.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Universal Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.83k | 1.38k | 57.7 |
Key Ratios Snapshot
Some of the financial key ratios for Universal Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.2% | 14.4% | 8.2% |
| FCF Margin | ROE | ROA |
| 2.4% | 9.8% | 4.8% |
Peers
The company produces a wide range of tobacco products, including cigarettes, cigars, pipe tobacco, smokeless tobacco, and rolling papers. Universal Corp is one of the world’s largest tobacco companies, with a market share of more than 10%. The company’s main competitors are Scandinavian Tobacco Group A/S, NTC Industries Ltd, and PepsiCo Inc.
– Scandinavian Tobacco Group A/S ($OTCPK:SNDVF)
Scandinavian Tobacco Group A/S is a leading international manufacturer and marketer of cigars, cigarettes, and pipe tobacco. The company has a market cap of 1.5B as of 2022 and a Return on Equity of 12.76%. Scandinavian Tobacco Group A/S is a publicly traded company listed on the Copenhagen Stock Exchange. The company’s products are sold in more than 100 countries worldwide.
– NTC Industries Ltd ($BSE:526723)
NTC Industry Ltd is a publicly traded company with a market capitalization of 1.04 billion as of 2022. The company has a return on equity of 9.86%. NTC Industries Ltd is engaged in the production and sale of nitrocellulose-based products. The company’s products are used in a variety of applications, including paints, inks, adhesives, and coatings.
– PepsiCo Inc ($NASDAQ:PEP)
PepsiCo Inc is a food and beverage company with a market cap of 246.31B as of 2022. The company has a Return on Equity of 45.25%. PepsiCo manufactures, markets, and sells a variety of carbonated and non-carbonated beverages, food, and snacks. The company’s products are sold in over 200 countries and territories. PepsiCo’s brands include Pepsi, Lay’s, Gatorade, Quaker, Tropicana, Mountain Dew, and Doritos.
Summary
Universal Corporation is facing a reduction in position by 73.7% from Susquehanna Portfolio Strategies LLC in the 2nd quarter, according to their most recent report. This decrease in investment signals a lack of confidence in the company’s performance and potential future growth. This could be due to various factors such as declining sales, financial instability, or competition in the market.
Investors must carefully analyze the company’s financial statements, market trends, and competitive landscape before making investment decisions. It is essential to consider the company’s strengths and opportunities for growth, as well as potential risks and challenges, to make informed investment decisions.
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