LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
NYSE:LEVI - New York Stock Exchange, Inc. - US52736R1023 - Common Stock - Currency: USD
LEVI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While LEVI has a great profitability rating, there are some minor concerns on its financial health. LEVI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LEVI had positive earnings in the past year.
LEVI had a positive operating cash flow in the past year.
LEVI had positive earnings in 4 of the past 5 years.
LEVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LEVI (5.75%) is better than 66.00% of its industry peers.
Looking at the Return On Equity, with a value of 17.51%, LEVI is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
The Return On Invested Capital of LEVI (12.70%) is better than 74.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEVI is below the industry average of 13.61%.
The 3 year average ROIC (11.40%) for LEVI is below the current ROIC(12.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.75% | ||
| ROE | 17.51% | ||
| ROIC | 12.7% |
ROA(3y)5.62%
ROA(5y)4.8%
ROE(3y)17.59%
ROE(5y)15.25%
ROIC(3y)11.4%
ROIC(5y)9.92%
1.3 Margins
LEVI's Profit Margin of 5.63% is fine compared to the rest of the industry. LEVI outperforms 62.00% of its industry peers.
LEVI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.28%, LEVI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LEVI has remained more or less at the same level.
With an excellent Gross Margin value of 60.99%, LEVI belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
LEVI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.28% | ||
| PM (TTM) | 5.63% | ||
| GM | 60.99% |
OM growth 3Y-5.57%
OM growth 5Y0.79%
PM growth 3Y-29.86%
PM growth 5Y-13.51%
GM growth 3Y1.12%
GM growth 5Y2.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEVI is creating some value.
LEVI has less shares outstanding than it did 1 year ago.
LEVI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LEVI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LEVI (2.80) is comparable to the rest of the industry.
The Debt to FCF ratio of LEVI is 2.25, which is a good value as it means it would take LEVI, 2.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.25, LEVI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that LEVI is not too dependend on debt financing.
LEVI has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.33
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.50 indicates that LEVI should not have too much problems paying its short term obligations.
LEVI has a worse Current ratio (1.50) than 70.00% of its industry peers.
A Quick Ratio of 0.89 indicates that LEVI may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, LEVI is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.31% over the past year.
Measured over the past years, LEVI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.61% on average per year.
Looking at the last year, LEVI shows a small growth in Revenue. The Revenue has grown by 4.58% in the last year.
The Revenue has been growing slightly by 1.98% on average over the past years.
EPS 1Y (TTM)34.31%
EPS 3Y-5.04%
EPS 5Y-11.61%
EPS Q2Q%46.15%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%-1.98%
3.2 Future
Based on estimates for the next years, LEVI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.60% on average per year.
The Revenue is expected to grow by 1.95% on average over the next years.
EPS Next Y1.66%
EPS Next 2Y7.9%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue Next Year-3.33%
Revenue Next 2Y0.76%
Revenue Next 3Y1.95%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.69, the valuation of LEVI can be described as reasonable.
74.00% of the companies in the same industry are more expensive than LEVI, based on the Price/Earnings ratio.
LEVI is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
LEVI is valuated reasonably with a Price/Forward Earnings ratio of 10.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 68.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. LEVI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEVI is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEVI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 6.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LEVI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LEVI may justify a higher PE ratio.
PEG (NY)6.45
PEG (5Y)N/A
EPS Next 2Y7.9%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
LEVI's Dividend Yield is a higher than the industry average which is at 4.16.
LEVI's Dividend Yield is a higher than the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
The dividend of LEVI is nicely growing with an annual growth rate of 11.52%!
LEVI has been paying a dividend for over 5 years, so it has already some track record.
As LEVI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.52%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
LEVI pays out 56.69% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LEVI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.69%
EPS Next 2Y7.9%
EPS Next 3Y9.6%
14.65
+0.54 (+3.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners85%
Inst Owner Change0%
Ins Owners2.73%
Ins Owner Change5.58%
Market Cap5.79B
Analysts74.74
Price Target22.01 (50.24%)
Short Float %5.78%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend0.5
Dividend Growth(5Y)11.52%
DP56.69%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.07%
Min EPS beat(2)1.37%
Max EPS beat(2)32.77%
EPS beat(4)4
Avg EPS beat(4)20.67%
Min EPS beat(4)1.37%
Max EPS beat(4)44.03%
EPS beat(8)8
Avg EPS beat(8)17.81%
EPS beat(12)12
Avg EPS beat(12)15.81%
EPS beat(16)16
Avg EPS beat(16)23.23%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)4.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)4.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.92%
Revenue beat(12)3
Avg Revenue beat(12)-1.71%
Revenue beat(16)5
Avg Revenue beat(16)-1.16%
PT rev (1m)-0.15%
PT rev (3m)-3.63%
EPS NQ rev (1m)-23.56%
EPS NQ rev (3m)-31.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.14%
Revenue NQ rev (1m)-4.05%
Revenue NQ rev (3m)-8.98%
Revenue NY rev (1m)-4.08%
Revenue NY rev (3m)-7.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.69 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.92 | ||
| P/FCF | 13.09 | ||
| P/OCF | 8.71 | ||
| P/B | 2.85 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 6.81 |
EPS(TTM)1.37
EY9.35%
EPS(NY)1.46
Fwd EY9.93%
FCF(TTM)1.12
FCFY7.64%
OCF(TTM)1.68
OCFY11.48%
SpS16
BVpS5.15
TBVpS3.95
PEG (NY)6.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.75% | ||
| ROE | 17.51% | ||
| ROCE | 16.1% | ||
| ROIC | 12.7% | ||
| ROICexc | 14.59% | ||
| ROICexgc | 16.63% | ||
| OM | 11.28% | ||
| PM (TTM) | 5.63% | ||
| GM | 60.99% | ||
| FCFM | 7% |
ROA(3y)5.62%
ROA(5y)4.8%
ROE(3y)17.59%
ROE(5y)15.25%
ROIC(3y)11.4%
ROIC(5y)9.92%
ROICexc(3y)13.08%
ROICexc(5y)11.93%
ROICexgc(3y)15.48%
ROICexgc(5y)14.43%
ROCE(3y)14.48%
ROCE(5y)12.6%
ROICexcg growth 3Y-10.85%
ROICexcg growth 5Y-8.71%
ROICexc growth 3Y-7.63%
ROICexc growth 5Y-8.57%
OM growth 3Y-5.57%
OM growth 5Y0.79%
PM growth 3Y-29.86%
PM growth 5Y-13.51%
GM growth 3Y1.12%
GM growth 5Y2.21%
F-Score9
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.25 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 112.49% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.98% | ||
| Profit Quality | 124.17% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.8 |
F-Score9
WACC9.58%
ROIC/WACC1.33
Cap/Depr(3y)158.9%
Cap/Depr(5y)137.05%
Cap/Sales(3y)4.34%
Cap/Sales(5y)3.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.31%
EPS 3Y-5.04%
EPS 5Y-11.61%
EPS Q2Q%46.15%
EPS Next Y1.66%
EPS Next 2Y7.9%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue 1Y (TTM)4.58%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%-1.98%
Revenue Next Year-3.33%
Revenue Next 2Y0.76%
Revenue Next 3Y1.95%
Revenue Next 5YN/A
EBIT growth 1Y70.36%
EBIT growth 3Y-2.44%
EBIT growth 5Y2.78%
EBIT Next Year50.6%
EBIT Next 3Y20.21%
EBIT Next 5YN/A
FCF growth 1Y236.86%
FCF growth 3Y5.56%
FCF growth 5Y23.15%
OCF growth 1Y3630.13%
OCF growth 3Y6.81%
OCF growth 5Y16.86%