LEVI STRAUSS & CO- CLASS A (LEVI)
US52736R1023 - Common Stock
We assign a fundamental rating of 5 out of 10 to LEVI. LEVI was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. LEVI has only an average score on both its financial health and profitability. LEVI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEVI was profitable.
In the past year LEVI had a positive cash flow from operations.
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
LEVI has a Return On Assets of 2.48%. This is comparable to the rest of the industry: LEVI outperforms 50.00% of its industry peers.
With a decent Return On Equity value of 8.28%, LEVI is doing good in the industry, outperforming 64.00% of the companies in the same industry.
The Return On Invested Capital of LEVI (10.43%) is better than 72.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEVI is in line with the industry average of 11.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 8.28% | ||
| ROIC | 10.43% |
ROA(3y)7.64%
ROA(5y)6%
ROE(3y)25.11%
ROE(5y)18.16%
ROIC(3y)13.88%
ROIC(5y)12.07%
1.3 Margins
LEVI's Profit Margin of 2.52% is in line compared to the rest of the industry. LEVI outperforms 52.00% of its industry peers.
In the last couple of years the Profit Margin of LEVI has declined.
LEVI has a Operating Margin of 8.04%. This is comparable to the rest of the industry: LEVI outperforms 56.00% of its industry peers.
In the last couple of years the Operating Margin of LEVI has declined.
LEVI has a better Gross Margin (59.09%) than 78.00% of its industry peers.
In the last couple of years the Gross Margin of LEVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.04% | ||
| PM (TTM) | 2.52% | ||
| GM | 59.09% |
OM growth 3Y55.99%
OM growth 5Y-4.78%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y2.49%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
LEVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
LEVI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEVI has more shares outstanding
LEVI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.69 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LEVI (2.69) is comparable to the rest of the industry.
The Debt to FCF ratio of LEVI is 1.60, which is an excellent value as it means it would take LEVI, only 1.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LEVI (1.60) is better than 68.00% of its industry peers.
LEVI has a Debt/Equity ratio of 0.55. This is a neutral value indicating LEVI is somewhat dependend on debt financing.
LEVI has a Debt to Equity ratio (0.55) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for LEVI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.23
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.41 indicates that LEVI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.41, LEVI is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
LEVI has a Quick Ratio of 1.41. This is a bad value and indicates that LEVI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, LEVI is not doing good in the industry: 82.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.00% over the past year.
The Earnings Per Share has been decreasing by -2.95% on average over the past years.
LEVI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.53%.
The Revenue has been growing slightly by 2.08% on average over the past years.
EPS 1Y (TTM)19%
EPS 3Y76.52%
EPS 5Y-2.95%
EPS Q2Q%17.86%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y11.54%
Revenue growth 5Y2.08%
Sales Q2Q%0.38%
3.2 Future
The Earnings Per Share is expected to grow by 17.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.86% on average over the next years.
EPS Next Y14.02%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
EPS Next 5Y17.28%
Revenue Next Year0.71%
Revenue Next 2Y2.59%
Revenue Next 3Y3.48%
Revenue Next 5Y6.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.29, the valuation of LEVI can be described as correct.
LEVI's Price/Earnings ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 76.00% of the companies in the same industry.
LEVI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.20.
With a Price/Forward Earnings ratio of 11.89, the valuation of LEVI can be described as very reasonable.
72.00% of the companies in the same industry are more expensive than LEVI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.28. LEVI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEVI is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
66.00% of the companies in the same industry are more expensive than LEVI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.51 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
LEVI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as LEVI's earnings are expected to grow with 13.13% in the coming years.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, LEVI pays a better dividend. On top of this LEVI pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, LEVI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
LEVI has been paying a dividend for over 5 years, so it has already some track record.
LEVI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LEVI pays out 125.61% of its income as dividend. This is not a sustainable payout ratio.
DP125.61%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
LEVI STRAUSS & CO- CLASS A
NYSE:LEVI (11/4/2024, 8:20:32 PM)
After market: 17 0 (0%)17
-0.19 (-1.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 8.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.04% | ||
| PM (TTM) | 2.52% | ||
| GM | 59.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19%
EPS 3Y76.52%
EPS 5Y
EPS Q2Q%
EPS Next Y14.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.53%
Revenue growth 3Y11.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y