LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
20.76 USD
+0.73 (+3.64%)
20.8 USD
+0.04 (+0.19%)
We assign a fundamental rating of 6 out of 10 to LEVI. LEVI was compared to 46 industry peers in the Textiles, Apparel & Luxury Goods industry. LEVI scores excellent on profitability, but there are some minor concerns on its financial health. 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 of 9.05%. This is amongst the best in the industry. LEVI outperforms 89.13% of its industry peers.
The Return On Equity of LEVI (27.87%) is better than 80.43% of its industry peers.
LEVI has a better Return On Invested Capital (12.69%) than 78.26% of its industry peers.
LEVI had an Average Return On Invested Capital over the past 3 years of 11.40%. This is in line with the industry average of 11.99%.
The 3 year average ROIC (11.40%) for LEVI is below the current ROIC(12.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 27.87% | ||
| ROIC | 12.69% |
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
The Profit Margin of LEVI (9.48%) is better than 86.96% of its industry peers.
LEVI's Profit Margin has declined in the last couple of years.
LEVI has a better Operating Margin (11.84%) than 80.43% of its industry peers.
LEVI's Operating Margin has been stable in the last couple of years.
LEVI's Gross Margin of 61.86% is amongst the best of the industry. LEVI outperforms 82.61% of its industry peers.
In the last couple of years the Gross Margin of LEVI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.84% | ||
| PM (TTM) | 9.48% | ||
| GM | 61.86% |
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
LEVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LEVI has less shares outstanding
LEVI has more shares outstanding than it did 5 years ago.
LEVI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LEVI (2.98) is better than 63.04% of its industry peers.
The Debt to FCF ratio of LEVI is 3.24, which is a good value as it means it would take LEVI, 3.24 years of fcf income to pay off all of its debts.
LEVI has a Debt to FCF ratio of 3.24. This is in the better half of the industry: LEVI outperforms 67.39% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that LEVI is not too dependend on debt financing.
The Debt to Equity ratio of LEVI (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.21
WACC10.52%
2.3 Liquidity
A Current Ratio of 1.52 indicates that LEVI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, LEVI is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
LEVI has a Quick Ratio of 1.52. This is a bad value and indicates that LEVI is not financially healthy enough and could expect problems in meeting its short term obligations.
LEVI has a Quick ratio of 0.87. This is in the lower half of the industry: LEVI underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.01% over the past year.
The earnings per share for LEVI have been decreasing by -11.72% on average. This is quite bad
The Revenue has been growing slightly by 5.90% in the past year.
LEVI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.98% yearly.
EPS 1Y (TTM)21.01%
EPS 3Y-5.04%
EPS 5Y-11.72%
EPS Q2Q%3.03%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%1.75%
3.2 Future
The Earnings Per Share is expected to grow by 10.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.23% on average over the next years.
EPS Next Y8.16%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year-0.24%
Revenue Next 2Y2.44%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
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 14.42, the valuation of LEVI can be described as correct.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LEVI to the average of the S&P500 Index (25.47), we can say LEVI is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.88, which indicates a correct valuation of LEVI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.42. LEVI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
63.04% of the companies in the same industry are more expensive than LEVI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as LEVI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.03 | ||
| EV/EBITDA | 8.72 |
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 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
LEVI's Dividend Yield is rather good when compared to the industry average which is at 3.54. LEVI pays more dividend than 84.78% of the companies in the same industry.
LEVI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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.
LEVI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.52%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
LEVI pays out 34.78% of its income as dividend. This is a sustainable payout ratio.
The dividend of LEVI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.78%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
20.76
+0.73 (+3.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners86.35%
Inst Owner Change-0.84%
Ins Owners2.45%
Ins Owner Change-5.11%
Market Cap8.11B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts81.9
Price Target27.68 (33.33%)
Short Float %8.28%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend0.5
Dividend Growth(5Y)11.52%
DP34.78%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.87%
Min EPS beat(2)8.55%
Max EPS beat(2)61.2%
EPS beat(4)4
Avg EPS beat(4)25.97%
Min EPS beat(4)1.37%
Max EPS beat(4)61.2%
EPS beat(8)8
Avg EPS beat(8)22.08%
EPS beat(12)12
Avg EPS beat(12)19.16%
EPS beat(16)16
Avg EPS beat(16)16.74%
Revenue beat(2)2
Avg Revenue beat(2)2.27%
Min Revenue beat(2)0.81%
Max Revenue beat(2)3.73%
Revenue beat(4)3
Avg Revenue beat(4)1.52%
Min Revenue beat(4)-2.88%
Max Revenue beat(4)4.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.82%
Revenue beat(16)6
Avg Revenue beat(16)-1.05%
PT rev (1m)11.75%
PT rev (3m)13.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.28 | ||
| P/FCF | 25.03 | ||
| P/OCF | 14.49 | ||
| P/B | 3.75 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 8.72 |
EPS(TTM)1.44
EY6.94%
EPS(NY)1.5
Fwd EY7.21%
FCF(TTM)0.83
FCFY3.99%
OCF(TTM)1.43
OCFY6.9%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.77
PEG (5Y)N/A
Graham Number13.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 27.87% | ||
| ROCE | 16.09% | ||
| ROIC | 12.69% | ||
| ROICexc | 14.95% | ||
| ROICexgc | 16.97% | ||
| OM | 11.84% | ||
| PM (TTM) | 9.48% | ||
| GM | 61.86% | ||
| FCFM | 5.1% |
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%
ROICexgc growth 3Y-10.85%
ROICexgc 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-Score7
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 114.67% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.45% | ||
| Profit Quality | 53.77% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.98 |
F-Score7
WACC10.52%
ROIC/WACC1.21
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)21.01%
EPS 3Y-5.04%
EPS 5Y-11.72%
EPS Q2Q%3.03%
EPS Next Y8.16%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue 1Y (TTM)5.9%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%1.75%
Revenue Next Year-0.24%
Revenue Next 2Y2.44%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
EBIT growth 1Y34.88%
EBIT growth 3Y-2.44%
EBIT growth 5Y2.78%
EBIT Next Year56.42%
EBIT Next 3Y21.52%
EBIT Next 5YN/A
FCF growth 1Y340.18%
FCF growth 3Y5.56%
FCF growth 5Y23.15%
OCF growth 1Y188.15%
OCF growth 3Y6.81%
OCF growth 5Y16.86%
LEVI STRAUSS & CO- CLASS A / LEVI FAQ
Can you provide the ChartMill fundamental rating for LEVI STRAUSS & CO- CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to LEVI.
What is the valuation status of LEVI STRAUSS & CO- CLASS A (LEVI) stock?
ChartMill assigns a valuation rating of 6 / 10 to LEVI STRAUSS & CO- CLASS A (LEVI). This can be considered as Fairly Valued.
Can you provide the profitability details for LEVI STRAUSS & CO- CLASS A?
LEVI STRAUSS & CO- CLASS A (LEVI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for LEVI stock?
The Price/Earnings (PE) ratio for LEVI STRAUSS & CO- CLASS A (LEVI) is 14.42 and the Price/Book (PB) ratio is 3.75.
Can you provide the dividend sustainability for LEVI stock?
The dividend rating of LEVI STRAUSS & CO- CLASS A (LEVI) is 6 / 10 and the dividend payout ratio is 34.78%.