Consumer Discretionary • NYSE
According to Zyberno, UNIVERSAL CORPORATION (UVV) shows a Value Trap signal — AVERAGE BUSINESS (50/100) with an apparent Margin of Safety of +78.8%, but a Brina Gap of -0.7% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, UNIVERSAL CORPORATION (UVV) trades at $45.74 against an estimated intrinsic value per share of $215.56 — a +78.8% Margin of Safety based on Owner Earnings of $173.74M TTM, projected at 70.8% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -0.7% weakens the case: based on the company's ROIC (7.3%) and reinvestment rate (-2.6%), the business can fundamentally grow at -0.2% — but the current enterprise value implies the market expects 0.5%. This places UVV in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 63.6% annually.
Over the trailing twelve months, UVV generated $173.74M in Owner Earnings. Capital was deployed as follows: $2.75M returned via share buybacks, $81.72M paid as dividends, $52.70M invested in capital expenditures. Reinvestment rate: -2.6%. Owner Earnings have grown at 70.8% annually over the trailing five years using log-linear regression.