Core Insights - Universal Corp. has emerged as a top decile stock in the U.S. by value ranking, highlighting its attractiveness as a well-priced investment opportunity [1] Value Ranking - The value score of Universal Corp. is 89.96, placing it among the elite value stocks, which may attract value-driven investors [2] Performance Metrics - Universal Corp. has a growth reading of 85.99, but it faces challenges with momentum and quality scores of 28.24 and 22.03, respectively [3] - The stock has experienced a decline of 3.25% year-to-date and 4.37% over the past year, closing at $52.92, with a slight increase of 0.53% in premarket trading [5] Market Position - Universal Corp. serves as a strategic supplier to major global tobacco companies, including Philip Morris and British American Tobacco, positioning it within a multi-billion-dollar value chain [4][5] - Forensic valuation models suggest that Universal Corp. is significantly undervalued, indicating potential upside in its intrinsic worth compared to its current share price [5]

Core Insights - The article discusses the current investment landscape, emphasizing the appeal of low-volatility stocks that offer high dividend yields amidst market uncertainty [3][4][5]. Group 1: Low Volatility Stocks - Low beta stocks, which are less volatile than the market, are currently undervalued, making them attractive for investors seeking stability [4][5]. - Safety Insurance Group (SAFT) offers a 5.2% yield and has low betas of 0.47 (1-year) and 0.26 (5-year), indicating its stability despite recent lackluster underwriting results [7][9][10]. - Universal Corp. (UVV) provides a 6.4% yield and operates as a tobacco supplier rather than a manufacturer, with betas of 0.33 (1-year) and 0.67 (5-year), reflecting its counter-market trends [11][13]. - LTC Properties (LTC) is a REIT with a 6.4% yield and low betas of 0.62 (5-year) and 0.23 (1-year), showing steady performance and a shift towards more operational exposure [14][15]. - Flowers Foods (FLO) has an 8.2% yield but faces challenges from import tariffs and high debt, with betas of 0.16 (1-year) and 0.31 (5-year) [15][17]. - Apple Hospitality REIT (APLE) offers an 8.6% yield and has betas of 0.94 (1-year) and 0.85 (5-year), indicating moderate volatility, with a diversified hotel portfolio [18][19][20]. Group 2: Market Conditions and Investment Strategy - The current bull market may be nearing a peak, prompting investors to consider low-volatility stocks as a defensive strategy [3][6]. - The article suggests that investors should prepare their portfolios for potential market downturns by focusing on stable, high-yield investments [3][6].

Core Viewpoint - Investors interested in undervalued tobacco stocks should consider Universal Corp. (UVV) over British American Tobacco (BTI) due to UVV's stronger performance in key valuation metrics and analyst outlook [1][3][7] Valuation Metrics - UVV has a forward P/E ratio of 11.58, while BTI's forward P/E is 12.12, indicating UVV may be more attractively priced [5] - The PEG ratio for UVV is 2.89, compared to BTI's 3.82, suggesting UVV offers better value relative to its expected earnings growth [5] - UVV's P/B ratio stands at 0.91, significantly lower than BTI's P/B of 1.77, further supporting UVV's undervaluation [6] Analyst Outlook - UVV currently holds a Zacks Rank of 1 (Strong Buy), reflecting an improving earnings estimate revision trend, while BTI has a Zacks Rank of 3 (Hold) [3][7] - The positive earnings outlook for UVV enhances its attractiveness as a value investment option [7]

Group 1 - The article provides a market analysis covering several companies including Safety Insurance Group Inc, LTC Properties Inc, Universal Corporation, and Flowers Foods Inc [1] - The analysis aims to identify potential investment opportunities and risks associated with these companies [1] - The report is available on Investing.com, indicating a focus on providing insights for investors [1] Group 2 - Safety Insurance Group Inc is highlighted for its performance metrics and market positioning [1] - LTC Properties Inc is analyzed in terms of its investment potential and market trends [1] - Universal Corporation and Flowers Foods Inc are also discussed, focusing on their respective market dynamics and financial health [1]

Core Insights - Universal Logistics Holdings, Inc. reported consolidated operating revenues of $396.8 million for Q3 2025, with a net loss of $74.8 million and earnings per share of $(2.84) [1][9]. Financial Performance - The reported loss includes non-cash impairment charges of $81.2 million, primarily from the intermodal segment, which consisted of $58.0 million in goodwill impairment and $23.2 million related to customer-relationship intangible assets [2]. - For comparison, Q3 2024 showed total operating revenues of $426.8 million, net income of $26.5 million, and earnings per share of $1.01, with prior impairment charges of $3.7 million [3]. - Excluding impairment charges, adjusted income from operations was $7.0 million, with an adjusted operating margin of 1.8%, down from 10.9% in Q3 2024 [4]. - Adjusted EBITDA for Q3 2025 was $43.3 million, with an adjusted EBITDA margin of 10.9%, compared to $76.6 million and 18.0% in the same period last year [5]. Segment Performance - In the contract logistics segment, operating revenues increased by 7.8% to $264.4 million, with a decrease in income from operations to $13.7 million from $45.6 million year-over-year [8][10]. - The intermodal segment saw a 16.7% decrease in operating revenues to $64.7 million, with an operating loss of $(92.0) million, significantly impacted by impairment charges [12][17]. - The trucking segment's operating revenues decreased by 22.2% to $67.7 million, with an operating income of $3.9 million, down from $7.1 million in the previous year [13][18]. Cash and Dividends - The company declared a cash dividend of $0.105 per share, payable on January 2, 2026, to shareholders of record as of December 1, 2025 [14]. Future Outlook - For Q4 2025, the company expects operating revenues between $365 million and $385 million, with operating margins ranging from 4% to 6% and EBITDA margins between 12% and 14% [15].

Financial Data and Key Metrics Changes - For the first half of fiscal year 2026, consolidated revenue increased by $40 million to $1.3 billion, driven by higher third-party tobacco processing volumes and increased sales volumes in the ingredients operations segment [8][9] - Operating income rose by $16 million to $101 million, primarily due to a favorable product mix in the tobacco operations segment [8] - In the second quarter, consolidated revenue was up $43 million to $754 million, with operating income decreasing by $1 million to $68 million due to unfavorable foreign currency comparisons and higher inventory write-downs [10][11] Business Line Data and Key Metrics Changes - Tobacco operations segment revenue rose by $29 million on a 3% increase in tobacco sales volumes, but segment operating income declined by $12 million due to unfavorable foreign currency comparisons and higher inventory write-downs [10][11] - Ingredients operations segment revenue increased by 11% on higher sales volumes, but operating income was lower due to a less favorable product mix and higher fixed costs [9][11] Market Data and Key Metrics Changes - Uncommitted inventory levels in the tobacco segment decreased to 13%, down from 20% in the previous quarter, indicating effective management of inventory amidst larger crop sizes [20][34] - Worldwide estimated unsold flue-cured tobacco early stocks were at 101 million kilos as of September 30, up 76 million kilos from June 30, attributed to large crops [41][42] Company Strategy and Development Direction - The company is focused on maximizing and optimizing its tobacco business while navigating expected oversupply conditions later in the fiscal year [12] - The ingredients segment is positioned for growth, with an emphasis on expanding production capabilities and customer engagement [6][12] - Sustainability efforts are being prioritized, with investments in renewable energy and operational efficiency to create long-term value [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by the consumer packaged goods industry and tariff uncertainties, while maintaining a positive outlook for the second half of the fiscal year [19][28] - The company is committed to driving organic growth and delivering customized solutions to customers, despite the mixed market conditions [12][28] Other Important Information - Interest expense decreased by $4 million year over year, reflecting efforts to reduce leverage [9][40] - The company has approximately $340 million available under its revolving credit facility as of September 30 [9] Q&A Session Summary Question: Regarding the ingredients segment, what is the current utilization at Lancaster and the expected improvement in fixed cost absorption? - Management indicated that they are off to a good start with revenue growth and are focused on converting customer interest into product sales, which will help cover fixed costs over time [18][19] Question: How confident is management about pricing discipline and margins in the tobacco segment with larger crops and softer pricing? - Management expressed comfort with current pricing and demand, noting that while green pricing has softened in some markets, overall demand remains firm [20] Question: What factors contributed to the loss in the ingredients segment during the second quarter? - Management acknowledged that various factors, including market conditions and customer challenges, impacted the pace of conversion and overall performance [28] Question: What is the anticipated uncommitted inventory level for the full year? - Management expects to stay within the comfort range for uncommitted inventory, emphasizing effective communication with customers to ensure timely shipments [35][39]

Group 1: SB Financial Group, Inc. (SBFG) - SB Financial Group is a financial holding company for the State Bank and Trust Company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 5.4% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 8.37, significantly lower than the industry average of 29.70, and possesses a Value Score of A [1] Group 2: Universal Corporation (UVV) - Universal Corporation is an agriproducts company that also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 6.5% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 10.84, compared to the industry average of 12.80, and possesses a Value Score of A [2] Group 3: Fox Corporation (FOXA) - Fox Corporation is involved in news, sports, and entertainment, holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 5.6% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 14.78, which is lower than the industry average of 36.80, and possesses a Value Score of A [3]

Financial Performance - Net income for the six months ended September 30, 2025, was $49,170 thousand, compared to $31,145 thousand for the same period in 2024, representing an increase of 57.9%[13] - Net income for the three months ended September 30, 2025, was $34,169 thousand, a significant increase from $25,940 thousand in the same period of 2024, representing a year-over-year growth of about 31.5%[14] - The total consolidated operating income for the six months ended September 30, 2025, was $101.462 million, up from $85.961 million in the same period of 2024, reflecting an increase of approximately 17.0%[84] - The company reported a net gain on foreign currency translation of $7.954 million for the six months ended September 30, 2025, compared to a gain of $3.933 million in the same period of 2024, representing an increase of approximately 102.5%[86] Revenue and Sales - Total revenue from contracts with customers for the six months ended September 30, 2025, was $1,342,069 thousand, up from $1,304,771 thousand in 2024, reflecting a 3% increase[25] - Total revenue from contracts with customers for the three months ended September 30, 2025, was $749.4 million, a 5.8% increase from $708.4 million in 2024[25] - Tobacco sales for the six months ended September 30, 2025, were $1,080,486 thousand, slightly down from $1,089,821 thousand in 2024, indicating a decrease of 1%[25] - Ingredient sales increased to $173,780 thousand for the six months ended September 30, 2025, compared to $157,237 thousand in 2024, marking a 10% growth[25] Assets and Liabilities - As of September 30, 2025, total assets increased to $3,070,439 thousand from $3,045,586 thousand as of September 30, 2024, reflecting a growth of approximately 0.82%[9] - Total current liabilities decreased to $828,631 thousand as of September 30, 2025, from $849,422 thousand as of September 30, 2024, a reduction of approximately 2.1%[11] - The company reported a total of $1,188,283 thousand in retained earnings as of September 30, 2025, up from $1,158,658 thousand as of September 30, 2024, an increase of 2.6%[11] - The company’s long-term debt remained stable at $618,196 thousand as of September 30, 2025, compared to $617,641 thousand as of September 30, 2024[11] Cash Flow and Expenses - Net cash used by operating activities for the six months ended September 30, 2025, was $(172,358) thousand, compared to $(47,413) thousand for the same period in 2024[13] - Selling, general and administrative expenses for the six months ended September 30, 2025, totaled $108.889 million, up from $104.857 million in the same period of 2024, indicating an increase of about 3.0%[84] - The cost of goods sold for the six months ended September 30, 2025, was $1.094 billion, compared to $1.069 billion in the same period of 2024, reflecting an increase of approximately 2.3%[84] Shareholder Equity and Dividends - Total shareholders' equity increased to $1,504,150 thousand as of September 30, 2025, compared to $1,458,004 thousand as of September 30, 2024, reflecting an increase of 3.2%[11] - Cash dividends declared for common stock amounted to $20,429 thousand in the three months ended September 30, 2025, compared to $20,020 thousand in the same period of 2024, indicating a slight increase of 2.04%[14] Impairment and Restructuring - The company incurred $1.0 million in impairment costs related to the consolidation of sheet tobacco operations during the six months ended September 30, 2025[18] - Total restructuring and impairment costs for the six months ended September 30, 2025, were $10.6 million, compared to $1.1 million in 2024[19] - The company recognized an impairment charge of $4.9 million for long-lived assets in Germany due to the consolidation of European Sheet tobacco operations[72] Stock and Compensation - The company issued 114,440 RSUs with a grant date fair value of $62.77 during the six months ended September 30, 2025, compared to 96,230 RSUs at $47.81 in 2024[78] - The total stock-based compensation expense recorded for the six-month periods ended September 30, 2025, and 2024, was approximately $8.5 million and $6.6 million, respectively[78] Taxation - The Company's consolidated effective income tax rates for the three and six months ended September 30, 2025, were 24.4% and 25.2%, respectively, compared to 28.6% and 31.5% for the same periods in 2024[38][39] - The Company does not anticipate a material impact from the Pillar Two legislation, which establishes a 15% global minimum tax rate effective for fiscal year 2025, on its consolidated financial statements for fiscal year 2026[36] Segment Performance - The Ingredients Operations segment provides a variety of plant-based ingredients, serving large multinational food and beverage companies[81] - The Tobacco Operations segment derives a substantial portion of its revenues from sales to a limited number of large, multinational cigarette and cigar manufacturers[80] - Segment operating income for Tobacco Operations was $65.088 million for the three months ended September 30, 2025, compared to $78.667 million in the same period of 2024, indicating a decline of about 17.3%[84] - The Ingredients Operations segment generated sales of $94.8 million for the three months ended September 30, 2025, up from $80.6 million in the same period of 2024, reflecting a growth of about 17.5%[84]

Revenue and Income - Revenue increased by 3% to $1.35 billion for the first half of fiscal year 2026, and by 6% to $754.2 million for the second quarter[7] - Operating income rose by 18% to $101.5 million for the first half, but decreased by 2% to $67.6 million for the second quarter[7] - Net income attributable to Universal Corporation increased by 64% to $42.7 million for the first half, and by 32% to $34.2 million for the second quarter[7] - Total sales and other operating revenues for the six months ended September 30, 2025, were $1,347,939,000, up from $1,307,812,000 in 2024, indicating a 3% growth[41] - Net income for the six months ended September 30, 2025, was $49,170,000, compared to $31,145,000 for the same period in 2024, representing a 58% increase[30] - Basic earnings per share for the six months ended September 30, 2025, were $1.71, compared to $1.05 for the same period in 2024, representing a 63% increase[33] Segment Performance - Tobacco Operations segment revenue grew by 2% to $1.16 billion for the first half, with operating income up 10% to $100.9 million[9] - Ingredients Operations segment revenue increased by 11% to $183.8 million for the first half, but operating income decreased by 64% to $1.5 million[7] - Segment operating income for Tobacco Operations was $100,918,000 for the six months ended September 30, 2025, compared to $91,788,000 in 2024, reflecting a 10% increase[41] - The Ingredients Operations segment reported sales of $183,820,000 for the six months ended September 30, 2025, compared to $165,645,000 in 2024, marking an 11% increase[41] Financial Position - Total debt decreased by $39 million to $1.16 billion compared to September 30, 2024[11] - Net debt (non-GAAP) decreased by $52 million to $1.07 billion as of September 30, 2025[11] - Total assets as of September 30, 2025, amounted to $3,070,439,000, a slight increase from $3,045,586,000 as of September 30, 2024[27] - Current liabilities decreased to $828,631,000 as of September 30, 2025, from $849,422,000 as of September 30, 2024, indicating a reduction of approximately 2.5%[29] - The inventory of tobacco as of September 30, 2025, was valued at $1,138,630,000, compared to $1,070,655,000 in the previous year, showing an increase of 6.4%[27] Cash Flow and Expenses - Cash used by operating activities for the six months ended September 30, 2025, was $(172,358,000), significantly higher than $(47,413,000) in 2024[30] - Net cash provided by financing activities for the six months ended September 30, 2025, was $20,565,000, a decrease from $109,289,000 in 2024[30] - The company reported a net cash decrease of $(171,463,000) for the six months ended September 30, 2025, compared to an increase of $24,525,000 in 2024[30] - Interest expense for the three months ended September 30, 2025, was $20,438,000, a decrease from $21,273,000 in the same period of 2024, representing a decline of 3.9%[25] Strategic Focus and Initiatives - The company is focusing on organic growth and building scale through its product pipeline despite market challenges[11] - Universal Corporation is making progress in its transition to renewable energy sources, expanding solar capacity in multiple countries[14] - The company anticipates continued growth in fiscal year 2026, driven by strategic plans in both the ingredients and tobacco businesses[22] Other Financial Metrics - Basic earnings per share for the three months ended September 30, 2025, rose to $1.36, compared to $1.04 for the same period in 2024, marking an increase of 30.8%[25] - Operating income for the six months ended September 30, 2025, was $101,462,000, compared to $85,961,000 for the same period in 2024, reflecting an increase of 17.9%[25] - Cash and cash equivalents as of September 30, 2025, were $88,652,000, compared to $80,118,000 as of September 30, 2024, indicating an increase of 10.5%[27] - The company incurred restructuring and impairment costs of $1,122,000 for the six months ended September 30, 2025, down from $10,573,000 in 2024[41]

Core Insights - Universal Corporation reported strong operational performance in both of its business segments for the first half of fiscal year 2026 [1] Financial Performance - The financial results for the six months and quarter ended September 30, 2025, were announced, indicating positive trends in revenue and operational efficiency [1]