Recent News
On April 10, 2026 the Board declared a quarterly cash dividend of $0.16 per share, payable May 15, 2026 to shareholders of record May 8, 2026.
On May 28, 2026 the company announced completion of its combined 2026–2027 reinsurance program effective June 1, 2026.
On June 16, 2026 Universal issued and sold $100.0 million of 7.75% Senior Unsecured Notes due 2031 and redeemed its $100.0 million 5.625% Senior Notes due 2026.
On June 22, 2026 KBRA assigned a BBB rating with a Stable outlook to the newly issued 2031 notes.
Technical Analysis
ADX at 22.01 signals an emerging trend strength that supports a near-term directional move rather than a prolonged trend; this level aligns with other momentum cues that favor continuation rather than a neutral market.
DI+ at 27.94 increasing and DI- at 15.55 decreasing produce a bullish directional-indicator profile, reinforcing upside bias from momentum measures.
MACD at 0.69 sits above its signal line at 0.30 and the MACD trend increases, constituting a bullish momentum confirmation for short-term price direction.
MRO positive at 21.82 and increasing indicates the market price sits above the technical target and carries potential for a corrective move; that creates a near-term reversion risk even as momentum reads bullish.
RSI at 53.34 and rising shows neutral-to-mild bullish relative-strength—momentum exists but the instrument does not yet register overbought conditions.
Price sits above key averages: close $41.83 exceeds the 20-day average $38.80, 50-day average $38.33 and the 200-day average $33.02, which supports a bullish price bias tied to the company’s valuation narrative.
Bollinger context shows price trading above the upper 1x band ($40.52) and approaching the upper 2x band ($42.24), indicating price strength but proximity to a short-term resistance envelope where volatility could compress.
Volume at 195,091 slightly exceeds the 10-day average of 155,554, supporting the latest directional move while 50- and 200-day averages sit near current trading activity, pointing to typical liquidity rather than exceptional flows.
Fundamental Analysis
Operating profitability remains solid: EBIT $73,110,000 and an EBIT margin of 18.58%, which sits marginally above the industry peer mean of 17.66%, and reflects a year-over-year improvement in margin of 28.93% despite a quarter-over-quarter contraction of 15.68%. The mixed intra-year movement signals seasonal or period-specific influences on underwriting and expense timing.
Earnings show a reported EPS of $2.00 versus an estimate of $1.39, an EPS surprise of roughly 43.9%, supported by net income from continuing operations of $54,291,000 and an operating cash flow of $154,822,000. Free cash flow stands at $153,242,000, producing a free-cash-flow yield of 16.45%, well above the industry peer mean of 3.32%, which materially supports the valuation designation.
Top-line dynamics display a mixed picture: reported revenue growth shows a nominal sequential change but a year-over-year decline of 33.74% in the labelled YoY metric; this top-line contraction contrasts with margin expansion and higher earnings per share, implying improved underwriting outcomes, investment gains, or reinsurance recoveries concentrated in the period.
Liquidity and leverage present strength: cash and short-term investments $740,548,000 against total debt $100,290,000, debt-to-assets 3.62% and debt-to-equity 17.15%, both below the industry peer means for those ratios. Interest expense remained modest ($1,418,000) and interest coverage stands high at 51.56x, reducing near-term refinancing pressure—an effect reinforced by the June 2026 private placement extending debt maturity to 2031.
Shareholder returns and capital allocation remain active: dividend yield about 0.53% with a dividend payout ratio near 9.04% and dividend coverage roughly 11.06x; these metrics show payout conservatism relative to earnings and cash flow. Book value per share stands at $20.95 and return on equity at 9.29%.
Valuation conclusion: the current valuation as determined by WMDST classifies the stock as under-valued. That determination rests on a combination of above-mean free-cash-flow yield, low net leverage, and an EPS outcome that exceeded consensus—factors that together support a valuation discount relative to realized cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-23 |
| NEXT REPORT DATE: | 2026-07-23 |
| CASH FLOW | Begin Period Cash Flow | $ 477.8 M |
| Operating Cash Flow | $ 154.8 M | |
| Capital Expenditures | $ -1.58 M | |
| Change In Working Capital | $ 100.5 M | |
| Dividends Paid | $ -4.91 M | |
| Cash Flow Delta | $ 120.6 M | |
| End Period Cash Flow | $ 598.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 393.6 M | |
| Forward Revenue | $ 55.6 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 321.9 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 73.1 M | |
| Operating Income | — | |
| Interest Income | $ -177.00 K | |
| Interest Expense | $ 1.4 M | |
| Net Interest Income | $ -1.59 M | |
| Income Before Tax | $ 71.7 M | |
| Tax Provision | $ 17.4 M | |
| Tax Rate | 24.3 % | |
| Net Income | $ 54.3 M | |
| Net Income From Continuing Operations | $ 54.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.39 | |
| EPS Actual | $ 2.00 | |
| EPS Difference | $ 0.61 | |
| EPS Surprise | 43.885 % | |
| Forward EPS | $ 1.10 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.8 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 584.7 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 740.5 M | |
| Cash | $ 595.8 M | |
| Net Receivables | $ 277.9 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 135.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 100.3 M | |
| Total Liabilities | $ 2.2 B | |
| EQUITY | ||
| Total Equity | $ 584.7 M | |
| Retained Earnings | $ 807.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 20.95 | |
| Shares Outstanding | 27.905 M | |
| Revenue Per-Share | $ 14.10 | |
| VALUATION | Market Capitalization | $ 931.5 M |
| Enterprise Value | $ 291.2 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 0.74 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.736 | |
| Asset To Liability | 1.268 | |
| Debt To Capital | 0.146 | |
| Debt To Assets | 0.036 | |
| Debt To Assets QoQ | 2.346 % | |
| Debt To Assets YoY | -2.714 % | |
| Debt To Assets IPRWA | high: 0.135 median: 0.06 mean: 0.058 UVE: 0.036 low: 0.005 |
|
| Debt To Equity | 0.172 | |
| Debt To Equity QoQ | -5.945 % | |
| Debt To Equity YoY | -28.31 % | |
| Debt To Equity IPRWA | high: 0.65 median: 0.262 mean: 0.24 UVE: 0.172 low: 0.011 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.593 | |
| Price To Book QoQ | 1.022 % | |
| Price To Book YoY | 9.766 % | |
| Price To Book IPRWA | high: 5.78 mean: 2.375 median: 1.963 UVE: 1.593 low: 0.308 |
|
| Price To Earnings (P/E) | 16.691 | |
| Price To Earnings QoQ | 16.744 % | |
| Price To Earnings YoY | 10.527 % | |
| Price To Earnings IPRWA | high: 119.255 mean: 45.027 median: 41.501 low: 19.674 UVE: 16.691 |
|
| PE/G Ratio | -2.131 | |
| Price To Sales (P/S) | 2.367 | |
| Price To Sales QoQ | 11.114 % | |
| Price To Sales YoY | 52.46 % | |
| Price To Sales IPRWA | high: 14.496 mean: 5.737 median: 5.424 UVE: 2.367 low: 1.646 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.699 | |
| Forward PE/G | -4.174 | |
| Forward P/S | 16.745 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.298 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.14 | |
| Asset Turnover Ratio QoQ | 1.984 % | |
| Asset Turnover Ratio YoY | -1.266 % | |
| Asset Turnover Ratio IPRWA | high: 0.241 UVE: 0.14 mean: 0.108 median: 0.084 low: 0.008 |
|
| Receivables Turnover | 1.342 | |
| Receivables Turnover Ratio QoQ | 16.298 % | |
| Receivables Turnover Ratio YoY | 112.182 % | |
| Receivables Turnover Ratio IPRWA | high: 1.905 UVE: 1.342 mean: 0.699 median: 0.599 low: 0.067 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 67.994 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 685.0 M | |
| Net Invested Capital | $ 685.0 M | |
| Invested Capital | $ 685.0 M | |
| Net Tangible Assets | $ 584.7 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 | 51.559 | |
| Interest Coverage Ratio QoQ | -18.422 % | |
| Interest Coverage Ratio YoY | 30.05 % | |
| Interest Coverage Ratio IPRWA | high: 51.943 UVE: 51.559 mean: 29.887 median: 29.619 low: -27.9 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 11.064 | |
| Dividend Payout Ratio | 0.09 | |
| Dividend Rate | $ 0.18 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.476 % | |
| Revenue Growth | 1.732 % | |
| Revenue Growth QoQ | 0.0 % | |
| Revenue Growth YoY | -33.741 % | |
| Revenue Growth IPRWA | high: 20.657 % UVE: 1.732 % mean: -1.747 % median: -2.349 % low: -11.415 % |
|
| Earnings Growth | -7.834 % | |
| Earnings Growth QoQ | -113.153 % | |
| Earnings Growth YoY | -101.646 % | |
| Earnings Growth IPRWA | high: 62.069 % UVE: -7.834 % mean: -11.509 % median: -16.107 % low: -66.667 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 18.576 % | |
| EBIT Margin QoQ | -15.682 % | |
| EBIT Margin YoY | 28.928 % | |
| EBIT Margin IPRWA | high: 47.822 % UVE: 18.576 % mean: 17.661 % median: 16.43 % low: -12.265 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 153.2 M | |
| Free Cash Flow Yield | 16.451 % | |
| Free Cash Flow Yield QoQ | 471.811 % | |
| Free Cash Flow Yield YoY | -45.649 % | |
| Free Cash Flow Yield IPRWA | UVE: 16.451 % high: 7.237 % median: 3.501 % mean: 3.317 % low: -4.372 % |
|
| Free Cash Growth | 512.894 % | |
| Free Cash Growth QoQ | -966.551 % | |
| Free Cash Growth YoY | -282.204 % | |
| Free Cash Growth IPRWA | UVE: 512.894 % high: 196.35 % mean: -8.168 % median: -15.291 % low: -133.645 % |
|
| Free Cash To Net Income | 2.823 | |
| Cash Flow Margin | -9.25 % | |
| Cash Flow To Earnings | -0.671 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.936 % | |
| Return On Assets QoQ | -13.802 % | |
| Return On Assets YoY | 29.759 % | |
| Return On Assets IPRWA | high: 4.47 % UVE: 1.936 % mean: 1.481 % median: 1.303 % low: -1.844 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.093 | |
| Return On Equity QoQ | -23.163 % | |
| Return On Equity YoY | -5.361 % | |
| Return On Equity IPRWA | high: 0.11 UVE: 0.093 mean: 0.056 median: 0.053 low: -0.069 |
|
| DuPont ROE | 9.56 % | |
| Return On Invested Capital (ROIC) | 8.082 % | |
| Return On Invested Capital QoQ | -22.176 % | |
| Return On Invested Capital YoY | -0.492 % | |
| Return On Invested Capital IPRWA | UVE: 8.082 % high: 7.411 % mean: 4.73 % median: 4.375 % low: -4.85 % |
|