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Universal Store Holdings Limited
Consumer Cyclical · Apparel Retail
Updated 21 hours ago
$7.41
MARKET CAP
$568.50M
P/E RATIO
24.5
DIV. YIELD
5.5%
FRANKING
100%
Universal Store Holdings Limited engages in the retail operations in the fashion market in Australia. It operates through two segments, Universal Store and Cheap Thrills Cycles.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$16.01
Discounted cash flow estimate
$4.42
For 6% dividend yield
Business quality and balance-sheet durability.
Profit generated per $1 of shareholder investment
Strong 19.9% average with no year below 15%. Consistent performance signals durable competitive advantage. Note: COVID-19 Pandemic year(s) excluded — ROE recovered to 282% of target.
Current Snapshot
10Y Avg
19.9%
Threshold
15.0%
Worst Year
16.0%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 19.9%, meaning each $1 of shareholder equity generates $0.20 in annual profit. The threshold is 15%, and the worst single year was 16.0%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
At 19.9% ROE, every $1 retained by this company generates $0.20 in annual profit. This compounding power drives long-term wealth - and for dividend investors, it typically means sustainable dividend growth without needing debt.
Sources
How much the company owes vs. what it owns
Acceptable. Debt level (0.61) is within this Buffett-inspired framework's limit of 1.5.
Current Snapshot
Current D/E
0.61x
Industry Limit
1.50x
Headroom
+0.89x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 0.61, meaning it carries 61 cents of debt for every $1 of equity. The consumer cyclical & retail limit is 1.50, leaving 0.89 of headroom.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
Low debt means this company isn't at risk of cutting dividends to service loans during downturns. Your income stream is protected by a strong balance sheet.
Sources
Profit after production costs, before overhead
Healthy 59.7% average margin suggests sustainable competitive advantage.
Current Snapshot
10Y Avg
59.7%
Threshold
40%
Worst Year
58.3%
Why It Matters
Gross margin indicates how much room a business has to absorb costs and still generate profit.
Formula
(Revenue - Cost of Goods Sold) / Revenue x 100Method
Assess both the long-term average and the weakest year. The framework checks for both level and consistency.
Worked Example
This company's 5-year average gross margin is 59.7% — it keeps 60 cents of every revenue dollar after production costs. The threshold is 40%, and the weakest year was 58.3%.
How to Interpret
Sustained high margins usually support durability. Sharp margin swings can signal weaker control or cyclical pressure.
Strong margins mean the company has pricing power. They can maintain profitability even if costs rise - protecting the dividend during inflationary periods.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$67M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $67M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Short-term assets vs. short-term debts
Current ratio of 0.81 is below 1.0 - company may struggle to pay short-term obligations.
Current Snapshot
Current Ratio
0.81x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 0.81x — it has $0.81 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Tight liquidity means the company may need to borrow or sell assets to pay bills. Dividends are often the first expense cut when cash runs low.
Sources
Price versus estimated intrinsic value and required return thresholds.
How current price compares with estimated intrinsic value
Stock is trading 38% BELOW the fair-value threshold (includes 25% margin of safety).
Current Snapshot
Current Margin
53.7%
Industry Threshold
25%
Status
38% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $16.01 per share, current price is $7.41, and margin of safety is 53.7%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price is below your required threshold, so you retain a margin-of-safety buffer against normal valuation error and market volatility.
Sources
What percentage of the stock price comes back as earnings each year
How efficiently the company turns money into profit
Strong 19.0% ROIC - company creates significant value above its 8.5% cost of capital.
Current Snapshot
5Y Avg
19.0%
Threshold
10.5%
WACC Delta
+10.5pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 19.0%, with a cost of capital (WACC) of 8.5%. The +10.5pp spread above WACC suggests it creates value on each dollar invested.
How to Interpret
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Returns well above cost of capital mean this company creates real value. Your investment should compound well, supporting both growth and sustainable dividends.
Sources
Percentage of revenue that becomes profit after all expenses
How much earnings are consumed by capital expenditure
Consistency of profits over time
Is the business growing — and is debt being managed responsibly?
Revenue and debt both growing — check whether debt is funding productive growth or covering shortfalls. Sustainable dividends require revenue to outpace debt over time.
Current Snapshot
Revenue Change
+58.1%
Debt Change
+497.7%
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +58.1% across the displayed period, while debt changed by +497.7%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue and debt both growing — check whether debt is funding productive growth or covering shortfalls. Sustainable dividends require revenue to outpace debt over time.
Sources
Annual dividends as percentage of stock price
3.58% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Current Snapshot
6Y Avg Yield
3.6%
6% Requirement
6.0%
Gross Yield
5.1%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.27 and a share price of $7.41, the Barsi yield is 3.6%. The minimum requirement is 6%. Including franking credits, the gross yield is 5.1%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Low yield means you need significant capital to generate meaningful income. Barsi's strategy focuses on stocks that provide substantial cash flow from day one.
Sources
Track record of consistent dividend payments
Insufficient dividend history for estimation
Highest price to lock in 6% yield
Industry category of the business
Consumer Cyclical is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Apparel Retail
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Apparel Retail (Consumer Cyclical sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 74% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
73.6%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.39 dividend / $0.30 EPS equals 127.5% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 74% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
Universal Store Holdings Limited engages in the retail operations in the fashion market in Australia. It operates through two segments, Universal Store and Cheap Thrills Cycles. The company offers tops, jeans, dresses, jackets and coats, pants, matching sets, hoodies and jumpers, fitted shirts and blouses, skirts, knitwear, T-Shirts, sweat sets, shorts, basics, cardigans, singlets and muscle tanks, underwear, jerseys, shirts, micro shorts, jorts, bralettes, and swim wears; denim products; shoes, such as crocs, birkenstocks, sneakers, sandals, havaianas, boots, ballet flats, slides, loafers, thongs, heels, and kids shoes. It also provides accessories, including jewelry, caps and hats, bags, keyrings and bag charms, sunglasses and glasses, wallets, shoe and hair care products, socks, watches, belts, beauty, fashion tape and solutions, scarves, grooming, and laces; and gift products comprising games, homewares, gift cards, candles, books, cameras, novelty, and sexual wellness products.
In addition, the company operates physical stores and online channels. The company was formerly known as US Holdings Pty Ltd. and changed its name to Universal Store Holdings Limited in October 2020. Universal Store Holdings Limited was founded in 1999 and is based in Eagle Farm, Australia.
Who owns the company's shares and how much leadership has at stake
Management's wealth moves with yours
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
A healthy mix — insiders hold 12.3% (they have skin in the game) and professional fund managers hold 53.5% (they’ve done their homework and like the business). This balance is a good sign for long-term investors.
Current Snapshot
Insider %
12.3%
Institutional %
53.5%
Float %
34.2%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 12.3% and institutions own 53.5%, public float is 34.2%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
A healthy mix — insiders hold 12.3% (they have skin in the game) and professional fund managers hold 53.5% (they’ve done their homework and like the business). This balance is a good sign for long-term investors.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 23 Sept 2025 | Peterson (Trent) Director (Non-Executive) | Sale at price 5.66 per share. | 150K | $849K |
| 19 Sept 2025 | Gamble (Renne) Independent Non-Executive Director | Purchase at price 5.81 per share. | 11K | $63K |
| 1 Sept 2025 | Barbery (Dorothy Alice) Chief Executive Officer | Unknown | 36K | — |
| 30 June 2025 | Do (Hoang George Minh) Divisional Officer | Unknown | 75K | — |
| 21 May 2025 | MacLean (David) Independent Non-Executive Director | Purchase at price 5.24 per share. | 3K | $16K |
Company insiders have been net sellers of shares over the past 12 months. Insider selling can occur for many reasons (tax, diversification) and is not necessarily negative.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
4.1% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
4.1%
Required Yield
7.5%
Spread
-3.4pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.30 and a share price of $7.41, earnings yield is 4.1%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
7.0% net margin meets the 5% threshold for this sector.
Current Snapshot
Current Margin
7.0%
Threshold
5.0%
Relative Position
+2.0%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 7.0% — it keeps 7 cents of every revenue dollar as profit after all expenses. The consumer cyclical & retail threshold is 5%, putting it 2.0% above the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Adequate profitability for this sector. The business converts enough revenue into profit to support dividend payments and moderate growth.
Sources
CapEx consumes 38% of cumulative earnings — within the 50% threshold but approaching the limit.
Current Snapshot
10Y CapEx Intensity
38%
Threshold
50%
Buffer
+12%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 38% of this company's cumulative earnings were consumed by capital expenditure. The consumer cyclical & retail threshold is 50%, leaving a buffer of +12%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Capital needs are within acceptable bounds but on the higher end. If CapEx requirements increase, there may be less room for dividends and growth.
Sources
Only 5/6 positive EPS years. Buffett requires predictable earnings he can forecast 5-10 years out.
Current Snapshot
Positive Years
5/6
Allowed Losses
0 (limited)
EPS CAGR
-4.7%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 5 of the last 6 years. With only 6 years of data, every year must be positive. EPS growth rate (CAGR) is -4.7%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Volatile earnings create dividend uncertainty. When profits disappear, dividends often follow. Forecasting your future income becomes difficult.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 26 Feb 2026Interim | 27 Mar 2026 | $0.37 | 100% | $0.26 | $0.11 |
| 3 Sept 2025Final | 25 Sept 2025 | $0.24 | 100% | $0.17 | $0.07 |
| 6 Mar 2025Interim | 10 Apr 2025 | $0.31 | 100% | $0.22 | $0.09 |
| 4 Sept 2024Final | 9 Oct 2024 | $0.27 | 100% | $0.19 | $0.08 |
| 7 Mar 2024Interim | 11 Apr 2024 | $0.24 | 100% | $0.17 | $0.07 |
| 11 Sept 2023Final | 16 Oct 2023 | $0.11 | 100% | $0.08 | $0.03 |
| 7 Mar 2023Interim | 11 Apr 2023 | $0.20 | 100% | $0.14 | $0.06 |
| 7 Sept 2022Final | 12 Oct 2022 | $0.15 | 100% | $0.10 | $0.04 |
| 4 Mar 2022Interim | 8 Apr 2022 | $0.16 | 100% | $0.11 | $0.05 |
| 7 Sept 2021Final | 12 Oct 2021 | $0.15 | 100% | $0.10 | $0.04 |
6 years of consistent dividends meets Barsi's 6-year minimum requirement.
Current Snapshot
History
6yr
Predictability
Variable
Payout Health
High risk
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 6 years of dividend history (2021–2026). No suspensions detected — 6 consecutive years of payments. Predictability: Variable. Payout health: High risk. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A consistent track record through recent years gives confidence your income will continue. This company has shown commitment to shareholder returns.
Sources
Current price ($7.41) is 68% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$7.41
Max Buy Price
$4.42
Delta
-67.6%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $7.41 and a ceiling of $4.42, the entry is 67.6% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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