LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
NYSE:LEVI - New York Stock Exchange, Inc. - US52736R1023 - Common Stock
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. LEVI has an average financial health and profitability rating. LEVI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEVI was profitable.
LEVI had a positive operating cash flow in the past year.
Of the past 5 years LEVI 4 years were profitable.
LEVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LEVI has a Return On Assets (2.48%) which is comparable to the rest of the industry.
The Return On Equity of LEVI (8.28%) is better than 63.27% of its industry peers.
The Return On Invested Capital of LEVI (10.43%) is better than 75.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEVI is above the industry average of 11.39%.
| 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 has a Profit Margin of 2.52%. This is comparable to the rest of the industry: LEVI outperforms 55.10% of its industry peers.
In the last couple of years the Profit Margin of LEVI has declined.
LEVI's Operating Margin of 8.04% is in line compared to the rest of the industry. LEVI outperforms 55.10% 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 75.51% of its industry peers.
LEVI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEVI is creating some value.
Compared to 1 year ago, LEVI has more shares outstanding
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 2.70 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.70, LEVI is in line with its industry, outperforming 46.94% of the companies in the same 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.
With a decent Debt to FCF ratio value of 1.60, LEVI is doing good in the industry, outperforming 73.47% of the companies in the same industry.
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 comparable to the rest of the industry.
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 | 2.7 |
ROIC/WACC1.22
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.41 indicates that LEVI should not have too much problems paying its short term obligations.
LEVI has a worse Current ratio (1.41) than 81.63% of its industry peers.
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: 85.71% 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.
LEVI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.95% yearly.
The Revenue has been growing slightly by 0.53% in the past year.
LEVI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.08% yearly.
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
Based on estimates for the next years, LEVI will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.51% on average per year.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y14.02%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
EPS Next 5Y13.51%
Revenue Next Year0.73%
Revenue Next 2Y2.6%
Revenue Next 3Y3.5%
Revenue Next 5Y5.57%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LEVI is valuated correctly with a Price/Earnings ratio of 14.74.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 75.51% of the companies are valued more expensively.
LEVI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 12.27 indicates a correct valuation of LEVI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a rather cheap valuation: LEVI is cheaper than 81.63% of the companies listed in the same industry.
LEVI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
LEVI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 67.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LEVI is valued a bit cheaper than 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.84 | ||
| EV/EBITDA | 10.83 |
4.3 Compensation for Growth
LEVI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LEVI's earnings are expected to grow with 13.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 2.84, LEVI pays a better dividend. On top of this LEVI pays more dividend than 87.76% of the companies listed in the same industry.
LEVI's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
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)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
125.61% of the earnings are spent on dividend by LEVI. This is not a sustainable payout ratio.
DP125.61%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
LEVI STRAUSS & CO- CLASS A
NYSE:LEVI (1/21/2025, 8:11:35 PM)
After market: 17.54 0 (0%)17.54
+0.17 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners87.85%
Inst Owner Change-0.04%
Ins Owners3.04%
Ins Owner Change4.42%
Market Cap6.96B
Analysts75.79
Price Target22.83 (30.16%)
Short Float %5.99%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP125.61%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.27%
Min EPS beat(2)4.52%
Max EPS beat(2)44.03%
EPS beat(4)4
Avg EPS beat(4)18.19%
Min EPS beat(4)0.79%
Max EPS beat(4)44.03%
EPS beat(8)8
Avg EPS beat(8)15.75%
EPS beat(12)12
Avg EPS beat(12)13.66%
EPS beat(16)16
Avg EPS beat(16)25.25%
Revenue beat(2)0
Avg Revenue beat(2)-3.37%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)-1.29%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)3
Avg Revenue beat(12)-1.9%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)0%
PT rev (3m)-3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.27 | ||
| P/S | 1.13 | ||
| P/FCF | 10.84 | ||
| P/OCF | 8.09 | ||
| P/B | 3.72 | ||
| P/tB | 4.99 | ||
| EV/EBITDA | 10.83 |
EPS(TTM)1.19
EY6.78%
EPS(NY)1.43
Fwd EY8.15%
FCF(TTM)1.62
FCFY9.22%
OCF(TTM)2.17
OCFY12.36%
SpS15.52
BVpS4.72
TBVpS3.51
PEG (NY)1.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 8.28% | ||
| ROCE | 11.5% | ||
| ROIC | 10.43% | ||
| ROICexc | 12.04% | ||
| ROICexgc | 13.81% | ||
| OM | 8.04% | ||
| PM (TTM) | 2.52% | ||
| GM | 59.09% | ||
| FCFM | 10.42% |
ROA(3y)7.64%
ROA(5y)6%
ROE(3y)25.11%
ROE(5y)18.16%
ROIC(3y)13.88%
ROIC(5y)12.07%
ROICexc(3y)16.47%
ROICexc(5y)15.53%
ROICexgc(3y)20.33%
ROICexgc(5y)18.72%
ROCE(3y)15.31%
ROCE(5y)13.32%
ROICexcg growth 3Y51.96%
ROICexcg growth 5Y-16.69%
ROICexc growth 3Y50.61%
ROICexc growth 5Y-16.56%
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%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 120.01% | ||
| Cap/Sales | 3.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.99% | ||
| Profit Quality | 414% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.7 |
F-Score6
WACC8.57%
ROIC/WACC1.22
Cap/Depr(3y)158.52%
Cap/Depr(5y)141.8%
Cap/Sales(3y)4.11%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19%
EPS 3Y76.52%
EPS 5Y-2.95%
EPS Q2Q%17.86%
EPS Next Y14.02%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
EPS Next 5Y13.51%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y11.54%
Revenue growth 5Y2.08%
Sales Q2Q%0.38%
Revenue Next Year0.73%
Revenue Next 2Y2.6%
Revenue Next 3Y3.5%
Revenue Next 5Y5.57%
EBIT growth 1Y7.45%
EBIT growth 3Y74%
EBIT growth 5Y-2.8%
EBIT Next Year54.21%
EBIT Next 3Y21.43%
EBIT Next 5Y20.03%
FCF growth 1Y231.73%
FCF growth 3Y-29.27%
FCF growth 5Y-14.39%
OCF growth 1Y91.65%
OCF growth 3Y-2.48%
OCF growth 5Y0.71%