Recent News
On January 7, 2026 the company authorized a $20.0 million share repurchase program. On February 24–25, 2026 Universal released fourth-quarter 2025 results showing adjusted diluted EPS of $2.17, above the $1.30 consensus estimate, and reported strong annual net income. The company declared and paid a regular cash dividend in March 2026 (cash payable March 13, 2026).
Technical Analysis
ADX at 16.01 indicates no established trend; price action therefore qualifies as range-bound rather than trending, which reduces the likelihood of a sustained breakout without a fresh directional catalyst.
Directional indicators present mixed directional momentum: DI+ at 22.65 shows a peak-and-reversal (bearish signal), while DI- at 17.93 also shows a peak-and-reversal (bullish signal). These opposing DI signals inside a weak ADX environment suggest choppy, mean-reverting price behavior into the near term.
MACD sits at 0.36 beneath its signal line of 0.47 and carries a peak-and-reversal reading; that combination indicates fading bullish momentum and a short-term bearish tilt in momentum until MACD re-accelerates above the signal line.
MRO at 29.9 (peak-and-reversal) registers positive territory, which implies the price currently sits above the model target and faces mean-reversion pressure; strength of the MRO number signals meaningful but not extreme reversion potential.
RSI at 54.29 with a peak-and-reversal reading places momentum in neutral-to-slightly-weak range; RSI does not show overbought conditions but confirms recent loss of upside momentum.
Price sits at $34.16, above the 200-day average of $29.11 and slightly above the 20-day average of $33.96; short-term moving averages tightened while the 12-day EMA shows a peak-and-reversal, signaling near-term momentum weakening despite a constructive longer-term moving-average bias. Bollinger bands place the 1x upper band near $34.55, leaving limited immediate upside before near-term resistance; the super-trend lower level near $32.50 serves as nearby support on intramonth pullbacks.
Fundamental Analysis
Operational profitability remains strong: EBIT equals $89,872,000 and the EBIT margin measures 22.03%, above the industry peer mean of 20.92%. Quarter-over-quarter EBIT-margin expansion registers 62.98% and the year-over-year reading shows a substantial increase (865.43%), reflecting material margin recovery versus prior periods.
Earnings exceeded expectations: diluted EPS of $2.17 beat the $1.30 estimate by $0.87, yielding an EPS surprise of approximately 66.92%. Forward EPS stands at $1.00 with forward P/E roughly 31.50; trailing P/E equals 14.30, which implies the market currently values trailing earnings more cheaply than forward consensus would suggest.
Balance-sheet metrics support capital deployment: cash and short-term investments total $571.79 million, while total debt remains modest at $100.48 million (debt-to-assets 3.54%). Interest coverage approximates 63.20x, indicating material capacity to service debt and support buybacks or dividends from operating profits.
Returns show durable profitability: return on equity records 12.08% (above the industry peer mean of 6.90%), and return on assets at 2.25% sits above the industry peer mean of 1.76%. Free cash flow equals $25,003,000 with a free-cash-flow yield of 2.88% and free-cash-flow growth negative over the last year, reflecting volatility in cash generation despite positive absolute FCF.
Valuation context: price-to-book stands at 1.5769 (below the industry peer mean of 2.5810), and price-to-sales at 2.13. WMDST values the stock as under-valued; the combination of above-peer margins, conservative leverage, strong interest coverage, and a meaningful buyback authorization supports that stated valuation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-24 |
| NEXT REPORT DATE: | 2026-05-26 |
| CASH FLOW | Begin Period Cash Flow | $ 474.2 M |
| Operating Cash Flow | $ 26.1 M | |
| Capital Expenditures | $ -1.08 M | |
| Change In Working Capital | $ -40.51 M | |
| Dividends Paid | $ -8.35 M | |
| Cash Flow Delta | $ 3.6 M | |
| End Period Cash Flow | $ 477.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 407.9 M | |
| Forward Revenue | $ 42.9 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 319.5 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 89.9 M | |
| Operating Income | — | |
| Interest Income | $ -177.00 K | |
| Interest Expense | $ 1.4 M | |
| Net Interest Income | $ -1.60 M | |
| Income Before Tax | $ 88.5 M | |
| Tax Provision | $ 21.9 M | |
| Tax Rate | 24.716 % | |
| Net Income | $ 66.6 M | |
| Net Income From Continuing Operations | $ 66.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.30 | |
| EPS Actual | $ 2.17 | |
| EPS Difference | $ 0.87 | |
| EPS Surprise | 66.923 % | |
| Forward EPS | $ 1.00 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.8 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 551.0 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 571.8 M | |
| Cash | $ 408.9 M | |
| Net Receivables | $ 308.6 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 257.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 100.5 M | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 551.0 M | |
| Retained Earnings | $ 757.4 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.67 | |
| Shares Outstanding | 28.008 M | |
| Revenue Per-Share | $ 14.56 | |
| VALUATION | Market Capitalization | $ 868.9 M |
| Enterprise Value | $ 397.6 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 0.975 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.153 | |
| Asset To Liability | 1.241 | |
| Debt To Capital | 0.154 | |
| Debt To Assets | 0.035 | |
| Debt To Assets QoQ | 8.594 % | |
| Debt To Assets YoY | -0.702 % | |
| Debt To Assets IPRWA | high: 0.14 median: 0.056 mean: 0.054 UVE: 0.035 low: 0.005 |
|
| Debt To Equity | 0.182 | |
| Debt To Equity QoQ | -10.331 % | |
| Debt To Equity YoY | -32.774 % | |
| Debt To Equity IPRWA | high: 0.705 mean: 0.228 median: 0.227 UVE: 0.182 low: 0.012 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.577 | |
| Price To Book QoQ | 5.309 % | |
| Price To Book YoY | 4.501 % | |
| Price To Book IPRWA | high: 6.563 mean: 2.581 median: 1.861 UVE: 1.577 low: 0.322 |
|
| Price To Earnings (P/E) | 14.297 | |
| Price To Earnings QoQ | -26.43 % | |
| Price To Earnings YoY | -82.17 % | |
| Price To Earnings IPRWA | high: 103.837 mean: 40.889 median: 40.504 UVE: 14.297 low: 12.348 |
|
| PE/G Ratio | 0.24 | |
| Price To Sales (P/S) | 2.13 | |
| Price To Sales QoQ | 15.224 % | |
| Price To Sales YoY | 45.533 % | |
| Price To Sales IPRWA | high: 19.182 mean: 5.878 median: 5.676 UVE: 2.13 low: 1.58 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 31.499 | |
| Forward PE/G | 0.529 | |
| Forward P/S | 20.257 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 37.994 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.138 | |
| Asset Turnover Ratio QoQ | 9.215 % | |
| Asset Turnover Ratio YoY | -1.798 % | |
| Asset Turnover Ratio IPRWA | high: 0.259 UVE: 0.138 mean: 0.112 median: 0.087 low: 0.008 |
|
| Receivables Turnover | 1.154 | |
| Receivables Turnover Ratio QoQ | 24.314 % | |
| Receivables Turnover Ratio YoY | 39.155 % | |
| Receivables Turnover Ratio IPRWA | high: 1.703 UVE: 1.154 mean: 0.717 median: 0.604 low: 0.073 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 79.075 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 79.075 | |
| Cash Conversion Cycle Days QoQ | -19.559 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 438.402 mean: 120.442 median: 80.405 UVE: 79.075 low: 33.334 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.003 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 651.5 M | |
| Net Invested Capital | $ 651.5 M | |
| Invested Capital | $ 651.5 M | |
| Net Tangible Assets | $ 551.0 M | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.064 % | |
| Interest Coverage Ratio | 63.201 | |
| Interest Coverage Ratio QoQ | 66.273 % | |
| Interest Coverage Ratio YoY | 932.956 % | |
| Interest Coverage Ratio IPRWA | high: 143.716 UVE: 63.201 mean: 38.626 median: 37.5 low: -0.995 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 7.971 | |
| Dividend Payout Ratio | 0.125 | |
| Dividend Rate | $ 0.30 | |
| Dividend Yield | 0.01 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -8.09 % | |
| Revenue Growth | 1.732 % | |
| Revenue Growth QoQ | 724.762 % | |
| Revenue Growth YoY | -344.633 % | |
| Revenue Growth IPRWA | high: 21.706 % mean: 3.728 % median: 2.421 % UVE: 1.732 % low: -20.344 % |
|
| Earnings Growth | 59.559 % | |
| Earnings Growth QoQ | 463.525 % | |
| Earnings Growth YoY | -144.365 % | |
| Earnings Growth IPRWA | UVE: 59.559 % high: 47.959 % median: 5.18 % mean: 4.741 % low: -43.137 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 22.031 % | |
| EBIT Margin QoQ | 62.975 % | |
| EBIT Margin YoY | 865.425 % | |
| EBIT Margin IPRWA | high: 62.969 % UVE: 22.031 % mean: 20.92 % median: 16.497 % low: -17.243 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 25.0 M | |
| Free Cash Flow Yield | 2.877 % | |
| Free Cash Flow Yield QoQ | -65.191 % | |
| Free Cash Flow Yield YoY | -115.85 % | |
| Free Cash Flow Yield IPRWA | high: 13.218 % mean: 3.493 % median: 3.288 % UVE: 2.877 % low: -1.478 % |
|
| Free Cash Growth | -59.188 % | |
| Free Cash Growth QoQ | 41.632 % | |
| Free Cash Growth YoY | -73.842 % | |
| Free Cash Growth IPRWA | high: 101.01 % mean: -31.9 % median: -36.48 % UVE: -59.188 % low: -205.847 % |
|
| Free Cash To Net Income | 0.375 | |
| Cash Flow Margin | -21.635 % | |
| Cash Flow To Earnings | 0.392 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.246 % | |
| Return On Assets QoQ | 79.536 % | |
| Return On Assets YoY | 925.571 % | |
| Return On Assets IPRWA | high: 4.006 % UVE: 2.246 % mean: 1.756 % median: 1.737 % low: -1.129 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.121 | |
| Return On Equity QoQ | 50.186 % | |
| Return On Equity YoY | 649.628 % | |
| Return On Equity IPRWA | high: 0.134 UVE: 0.121 median: 0.076 mean: 0.069 low: -0.041 |
|
| DuPont ROE | 12.732 % | |
| Return On Invested Capital (ROIC) | 10.385 % | |
| Return On Invested Capital QoQ | 51.164 % | |
| Return On Invested Capital YoY | -559.31 % | |
| Return On Invested Capital IPRWA | high: 11.649 % UVE: 10.385 % median: 6.141 % mean: 5.973 % low: -2.346 % |
|