UniversalHAM:UVV +1.15%72 Interest Coverage is 1.41 as of Mar. 2026, which is 78% below its 10-year median of 6.36. GuruFocus rates HAM:UVV with a GF Score™ of 72/100 and a GF Value™ of €47.77. The stock has 8 warning signs investors should review. Among 35 Tobacco Products companies, Universal ranks worse than 91.43% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Universal's
Operating Income
for the
three
months ended in Mar. 2026 was €23 Mil. Universal's Interest Expense for the
three
months ended in Mar. 2026 was €-16 Mil.
Universal's interest coverage for the quarter that ended in Mar. 2026 was 1.41.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Universal's Interest Coverage or its related term are showing as below:
HAM:UVV'
s Interest Coverage Range Over the Past 10 Years
Min: 2.85 Med: 6.36 Max: 11.22
Current: 2.85
HAM:UVV's Interest Coverage is ranked worse than 91.43% of 35
companies
in the Tobacco Products industry
Industry Median: 10.9
vs HAM:UVV: 2.85
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Universal Interest Coverage Related Terms
Universal Interest Coverage Historical Data
* Premium members only.
The historical data trend for Universal's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HAM:UVV vs AIIR, TPB, ISPR: Interest Coverage Comparison
For the Tobacco subindustry, Universal's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Interest Coverage vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Universal's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Universal's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Universal (HAM:UVV) has a Interest Coverage of 1.41 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Universal and its competitors. This is 78% below median its historical median of 6.36. Over the past decade, Universal's Interest Coverage has ranged from 2.85 to 11.22. According to the industry distribution chart, Universal ranks #32 out of 35 companies in the Tobacco Products industry, placing it in the top 91.4%.
Is Universal's Interest Coverage too high?
Universal's current Interest Coverage of 1.41 is 78% below median its 10-year median of 6.36. Over the past 10 years, this metric has ranged from a low of 2.85 to a high of 11.22. The Tobacco Products industry median Interest Coverage is 10.90. Universal's value of 1.41 is 87.1% below this industry median. Based on the distribution chart, Universal ranks #32 out of 35 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. Overall, Universal has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Universal's Interest Coverage compare to AIIR and TPB?
According to the Tobacco Products industry distribution chart, Universal ranks #32 out of 35 companies for Interest Coverage. This places Universal in the lower half of its industry. The industry median Interest Coverage is 10.90. Universal's value of 1.41 is 87.1% below this benchmark. Historically, Universal's own Interest Coverage has ranged from 2.85 to 11.22 over the past decade. While the company's 10-year median is 6.36 vs. the industry median of 10.90, Universal has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Tobacco Products company?
The median Interest Coverage among Tobacco Products companies is 10.90, based on 35 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal's current Interest Coverage of 1.41 is 87.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Universal and its competitors. For the Tobacco Products industry, the median Interest Coverage is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal's current Interest Coverage is 1.41, which is 78% below median its own 10-year median of 6.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal stock overvalued right now?
Universal (HAM:UVV) has a current Interest Coverage of 1.41. The stock's GF Value™ is €47.77, compared to a current price of €45.72 — trading 4.3% below its estimated fair value. The current Interest Coverage is 1.41, which is 78% below median its 10-year median of 6.36 and 87.1% below the Tobacco Products industry median of 10.90. Universal's overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Universal (HAM:UVV), the current Interest Coverage is 1.41 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal (HAM:UVV) Overvalued in 2026?
Based on GuruFocus' analysis, Universal stock appears to be undervalued.
The current stock price of €45.72 is trading 4.3% below its estimated GF Value™ of €47.77.
Key valuation signals for HAM:UVV:
Interest Coverage: 1.41 (78% below median its 10-year median of 6.36)
GF Value™: €47.77 vs. price of €45.72 (4.3% below fair value)
Industry Position: 87.1% below the Tobacco Products median (#32 of 35)
No single metric tells the full story. See the HAM:UVV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Corp is an international leaf tobacco supplier. The company procures leaf tobacco from farmers, processes it, and sells it to companies that manufacture consumer tobacco products. Universal does not manufacture or sell any consumer products itself. The company's segments include Tobacco Operations and Ingredients Operations. It generates maximum revenue from the Tobacco Operations segment. Geographically, it derives a majority of revenue from the United States. The company operates in the USA, Belgium, China, Egypt, Philippines, Germany, and Other Countries with majority of revenue from USA.
72GF Score
Get the complete analysis for HAM:UVV
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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