Recent News
May 28, 2026 — Universal completed its combined 2026–2027 reinsurance program, adding multi-year coverage and $352 million of incremental multi-year protection. June 16, 2026 — the company issued $100 million of 7.75% Senior Unsecured Notes due 2031 and executed redemptions of near-term 5.625% debt. June 22, 2026 — a rating agency assigned a BBB rating to the 2031 notes with a Stable outlook.
Technical Analysis
Directional indicators present mixed signals. ADX at 15.73 denotes no established trend; DI+ at 25.07 trending down reads as bearish pressure while DI– has completed a peak-and-reverse, which reads as bullish pressure—together these suggest range-bound behavior with competing directional forces affecting near-term price action.
MACD sits at 0.46 with a dip-and-reversal pattern, indicating improving momentum, but the MACD line remains below its 0.60 signal line, so a bullish momentum confirmation awaits a crossover.
MRO registers 23.69 and is decreasing. The positive MRO indicates price currently sits above the model target, implying potential downward pressure until momentum or valuation signals reduce that premium; the declining MRO lessens the immediate strength of that overvaluation signal.
RSI at 56.12 with a dip-and-reversal shows renewed buying interest without overbought conditions; the RSI supports continuation of the recent recovery but offers limited conviction for an extended breakout.
Price sits above the 200‑day average ($35.78) and marginally above short-term averages (20‑day $43.05; 12‑day EMA $42.92), reflecting intermediate bullish bias. Ichimoku components place price near the Tenkan/Kijun zone (Tenkan 43.41, Kijun 40.84), indicating short-term resistance above and support below. Bollinger bands place the close ($43.29) between the 1‑sigma range, near the upper band, consistent with contained upward pressure rather than a strong breakout.
Volume remains below recent averages (today: 110,378 vs 10‑day avg 167,797 and 50/200‑day averages above 197k), reducing conviction behind price moves and increasing the likelihood of consolidation unless volume picks up to confirm momentum.
Fundamental Analysis
Profitability and operating performance: EBIT equals $81,144,000 and the EBIT margin sits at 19.00%, marginally below the industry peer mean of 20.91% and slightly below the peer median of 19.25%, indicating near‑peer operating efficiency. QoQ EBIT margin rose by 2.29% and YoY expanded by 59.01%, reflecting meaningful margin improvement over the last year.
Bottom‑line and earnings quality: Reported EPS of $1.84 exceeded the $1.43 estimate by $0.41, an EPS surprise of +28.67%. Net income totaled $59,188,000 and cash flow metrics show operating cash flow of $101,077,000 with free cash flow of $100,175,000; free cash flow to net income sits at 169.25%, indicating high cash conversion of reported earnings.
Growth rates: Total revenue of $427,033,000 declined YoY by 3.63% and QoQ by 3.03%, while earnings growth shows a QoQ improvement of +2.12% but a YoY decline of -45.14%. The pattern suggests near‑term stabilization in earnings despite modest revenue contraction.
Balance sheet and leverage: Total assets $3,306,164,000 with total equity $637,155,000 produce asset‑to‑equity of 5.19 and debt to assets of 2.96%, noticeably below the industry peer mean debt‑to‑assets of 6.10%, signaling conservative leverage. Interest coverage stands at 53.07, indicating ample capacity to service interest expense.
Valuation and market metrics: P/E equals 20.98 with a forward P/E of 33.97; both sit below the industry peer mean P/E and forward P/E. Price-to-book sits at 1.69, below the industry peer mean of 2.35 and the peer median of 2.09. Free cash flow yield runs at 9.32%, well above the industry peer mean of 3.24%, reflecting strong cash return relative to market value.
Capital actions and liquidity: Cash and short‑term investments total $703,841,000 and the company completed refinancing activity, issuing $100 million of 2031 notes and redeeming near‑term paper, which extends debt maturity and preserves liquidity. Dividend payout ratio remains modest at 7.46% with a dividend yield around 0.41%.
Valuation conclusion: The current valuation as determined by WMDST views the stock as under‑valued, driven by strong cash generation, low leverage, and P/B and free‑cash metrics that sit below peer averages while free cash flow yield exceeds peer averages.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-23 |
| NEXT REPORT DATE: | 2026-10-22 |
| CASH FLOW | Begin Period Cash Flow | $ 598.4 M |
| Operating Cash Flow | $ 101.1 M | |
| Capital Expenditures | $ -902.00 K | |
| Change In Working Capital | $ 41.9 M | |
| Dividends Paid | $ -4.41 M | |
| Cash Flow Delta | $ 2.4 M | |
| End Period Cash Flow | $ 600.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 427.0 M | |
| Forward Revenue | $ 56.5 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 347.4 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 81.1 M | |
| Operating Income | — | |
| Interest Income | $ -466.00 K | |
| Interest Expense | $ 1.5 M | |
| Net Interest Income | $ -2.00 M | |
| Income Before Tax | $ 79.6 M | |
| Tax Provision | $ 20.4 M | |
| Tax Rate | 25.657 % | |
| Net Income | $ 59.2 M | |
| Net Income From Continuing Operations | $ 59.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.43 | |
| EPS Actual | $ 1.84 | |
| EPS Difference | $ 0.41 | |
| EPS Surprise | 28.671 % | |
| Forward EPS | $ 1.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.3 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 637.2 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 703.8 M | |
| Cash | $ 532.2 M | |
| Net Receivables | $ 262.4 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 627.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 97.9 M | |
| Total Liabilities | $ 2.7 B | |
| EQUITY | ||
| Total Equity | $ 637.2 M | |
| Retained Earnings | $ 861.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 22.89 | |
| Shares Outstanding | 27.830 M | |
| Revenue Per-Share | $ 15.34 | |
| VALUATION | Market Capitalization | $ 1.1 B |
| Enterprise Value | $ 468.4 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 1.097 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.189 | |
| Asset To Liability | 1.239 | |
| Debt To Capital | 0.133 | |
| Debt To Assets | 0.03 | |
| Debt To Assets QoQ | -18.255 % | |
| Debt To Assets YoY | -3.865 % | |
| Debt To Assets IPRWA | high: 0.135 median: 0.062 mean: 0.061 UVE: 0.03 low: 0.004 |
|
| Debt To Equity | 0.154 | |
| Debt To Equity QoQ | -10.454 % | |
| Debt To Equity YoY | -30.292 % | |
| Debt To Equity IPRWA | high: 0.603 mean: 0.251 median: 0.244 UVE: 0.154 low: 0.011 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.686 | |
| Price To Book QoQ | 5.856 % | |
| Price To Book YoY | 13.014 % | |
| Price To Book IPRWA | high: 4.924 mean: 2.348 median: 2.089 UVE: 1.686 low: 0.285 |
|
| Price To Earnings (P/E) | 20.982 | |
| Price To Earnings QoQ | 25.712 % | |
| Price To Earnings YoY | 1.93 % | |
| Price To Earnings IPRWA | high: 74.319 mean: 40.396 median: 38.765 UVE: 20.982 low: 12.893 |
|
| PE/G Ratio | -2.623 | |
| Price To Sales (P/S) | 2.516 | |
| Price To Sales QoQ | 6.304 % | |
| Price To Sales YoY | 47.382 % | |
| Price To Sales IPRWA | high: 17.773 mean: 5.61 median: 5.195 UVE: 2.516 low: 1.475 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 33.966 | |
| Forward PE/G | -4.246 | |
| Forward P/S | 19.026 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.292 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.141 | |
| Asset Turnover Ratio QoQ | 0.171 % | |
| Asset Turnover Ratio YoY | 5.225 % | |
| Asset Turnover Ratio IPRWA | high: 0.275 UVE: 0.141 mean: 0.116 median: 0.087 low: 0.008 |
|
| Receivables Turnover | 1.581 | |
| Receivables Turnover Ratio QoQ | 17.784 % | |
| Receivables Turnover Ratio YoY | 99.226 % | |
| Receivables Turnover Ratio IPRWA | high: 1.94 UVE: 1.581 mean: 0.72 median: 0.581 low: 0.103 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 57.728 | |
| 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 | -0.002 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 735.0 M | |
| Net Invested Capital | $ 735.0 M | |
| Invested Capital | $ 735.0 M | |
| Net Tangible Assets | $ 637.2 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 | 1.069 % | |
| Interest Coverage Ratio | 53.07 | |
| Interest Coverage Ratio QoQ | 2.932 % | |
| Interest Coverage Ratio YoY | 58.82 % | |
| Interest Coverage Ratio IPRWA | high: 103.374 UVE: 53.07 mean: 32.853 median: 27.705 low: -51.472 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 13.412 | |
| Dividend Payout Ratio | 0.075 | |
| Dividend Rate | $ 0.16 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 19.382 % | |
| Revenue Growth | -3.52 % | |
| Revenue Growth QoQ | -303.233 % | |
| Revenue Growth YoY | -363.473 % | |
| Revenue Growth IPRWA | high: 23.705 % median: 6.069 % mean: 4.542 % UVE: -3.52 % low: -8.981 % |
|
| Earnings Growth | -8.0 % | |
| Earnings Growth QoQ | 2.119 % | |
| Earnings Growth YoY | -45.142 % | |
| Earnings Growth IPRWA | high: 114.286 % mean: 4.926 % median: -2.308 % UVE: -8.0 % low: -50.8 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 19.002 % | |
| EBIT Margin QoQ | 2.293 % | |
| EBIT Margin YoY | 59.013 % | |
| EBIT Margin IPRWA | high: 45.417 % mean: 20.914 % median: 19.249 % UVE: 19.002 % low: 6.954 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 100.2 M | |
| Free Cash Flow Yield | 9.323 % | |
| Free Cash Flow Yield QoQ | -43.329 % | |
| Free Cash Flow Yield YoY | -39.489 % | |
| Free Cash Flow Yield IPRWA | high: 10.897 % UVE: 9.323 % mean: 3.242 % median: 2.829 % low: -4.064 % |
|
| Free Cash Growth | -34.63 % | |
| Free Cash Growth QoQ | -106.752 % | |
| Free Cash Growth YoY | -19.979 % | |
| Free Cash Growth IPRWA | high: 827.586 % mean: 1.058 % median: -19.401 % UVE: -34.63 % low: -767.445 % |
|
| Free Cash To Net Income | 1.692 | |
| Cash Flow Margin | 132.69 % | |
| Cash Flow To Earnings | 9.573 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.948 % | |
| Return On Assets QoQ | 0.62 % | |
| Return On Assets YoY | 66.212 % | |
| Return On Assets IPRWA | high: 5.201 % UVE: 1.948 % mean: 1.836 % median: 1.545 % low: -2.187 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.093 | |
| Return On Equity QoQ | 0.043 % | |
| Return On Equity YoY | 21.187 % | |
| Return On Equity IPRWA | high: 0.14 UVE: 0.093 mean: 0.069 median: 0.067 low: -0.087 |
|
| DuPont ROE | 9.687 % | |
| Return On Invested Capital (ROIC) | 8.203 % | |
| Return On Invested Capital QoQ | 1.497 % | |
| Return On Invested Capital YoY | 26.687 % | |
| Return On Invested Capital IPRWA | high: 11.67 % UVE: 8.203 % mean: 5.764 % median: 5.447 % low: 0.798 % |
|