LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - NYSE:LEVI - US52736R1023 - Common Stock
23.03 USD
+0.33 (+1.45%)
23.1 USD
+0.07 (+0.3%)
LEVI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 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.
LEVI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years LEVI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.20%, LEVI is doing good in the industry, outperforming 73.47% of the companies in the same industry.
The Return On Equity of LEVI (19.39%) is better than 75.51% of its industry peers.
LEVI has a Return On Invested Capital of 12.92%. This is in the better half of the industry: LEVI outperforms 75.51% 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 12.08%.
The last Return On Invested Capital (12.92%) for LEVI is above the 3 year average (11.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 19.39% | ||
| ROIC | 12.92% |
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
With a decent Profit Margin value of 6.40%, LEVI is doing good in the industry, outperforming 77.55% of the companies in the same industry.
LEVI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.78%, LEVI belongs to the top of the industry, outperforming 81.63% 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 61.48%, LEVI belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
LEVI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.78% | ||
| PM (TTM) | 6.4% | ||
| GM | 61.48% |
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.
The number of shares outstanding for LEVI has been reduced compared to 1 year ago.
The number of shares outstanding for LEVI has been increased compared to 5 years ago.
The debt/assets ratio for LEVI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.11 indicates that LEVI is not in any danger for bankruptcy at the moment.
The Altman-Z score of LEVI (3.11) is comparable to the rest of the industry.
LEVI has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as LEVI would need 2.84 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.84, LEVI is doing good in the industry, outperforming 69.39% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that LEVI is not too dependend on debt financing.
The Debt to Equity ratio of LEVI (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.28
WACC10.09%
2.3 Liquidity
LEVI has a Current Ratio of 1.48. This is a normal value and indicates that LEVI is financially healthy and should not expect problems in meeting its short term obligations.
LEVI's Current ratio of 1.48 is on the low side compared to the rest of the industry. LEVI is outperformed by 75.51% of its industry peers.
LEVI has a Quick Ratio of 1.48. This is a bad value and indicates that LEVI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LEVI (0.85) is worse than 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.44% over the past year.
LEVI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.72% yearly.
LEVI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.28%.
LEVI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.98% yearly.
EPS 1Y (TTM)25.44%
EPS 3Y-5.04%
EPS 5Y-11.72%
EPS Q2Q%37.5%
Revenue 1Y (TTM)4.28%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%0.33%
3.2 Future
LEVI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
Based on estimates for the next years, LEVI will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y6.58%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
EPS Next 5YN/A
Revenue Next Year-1.3%
Revenue Next 2Y1.72%
Revenue Next 3Y2.69%
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.
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
A Price/Earnings ratio of 16.10 indicates a correct valuation of LEVI.
Compared to the rest of the industry, the Price/Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 65.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LEVI to the average of the S&P500 Index (27.41), we can say LEVI is valued slightly cheaper.
LEVI is valuated correctly with a Price/Forward Earnings ratio of 15.57.
Based on the Price/Forward Earnings ratio, LEVI is valued a bit cheaper than 63.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LEVI to the average of the S&P500 Index (22.88), we can say LEVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEVI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, LEVI is valued a bit cheaper than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.91 | ||
| EV/EBITDA | 9.68 |
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.
LEVI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.40%.
LEVI's Dividend Yield is rather good when compared to the industry average which is at 3.08. LEVI pays more dividend than 83.67% of the companies in the same industry.
LEVI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
On average, the dividend of LEVI grows each year by 11.52%, which is quite nice.
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 50.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
LEVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.75%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
23.03
+0.33 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.46%
Inst Owner Change3.09%
Ins Owners2.45%
Ins Owner Change-0.41%
Market Cap9.11B
Analysts78.95
Price Target24.29 (5.47%)
Short Float %10.88%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.5
Dividend Growth(5Y)11.52%
DP50.75%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.98%
Min EPS beat(2)32.77%
Max EPS beat(2)61.2%
EPS beat(4)4
Avg EPS beat(4)24.96%
Min EPS beat(4)1.37%
Max EPS beat(4)61.2%
EPS beat(8)8
Avg EPS beat(8)21.34%
EPS beat(12)12
Avg EPS beat(12)18.98%
EPS beat(16)16
Avg EPS beat(16)17.8%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)3.73%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)4.41%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)3
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-1.14%
PT rev (1m)0%
PT rev (3m)19.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)5.91%
EPS NY rev (3m)6.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 15.57 | ||
| P/S | 1.44 | ||
| P/FCF | 24.91 | ||
| P/OCF | 15.51 | ||
| P/B | 4.36 | ||
| P/tB | 5.64 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)1.43
EY6.21%
EPS(NY)1.48
Fwd EY6.42%
FCF(TTM)0.92
FCFY4.01%
OCF(TTM)1.49
OCFY6.45%
SpS16
BVpS5.28
TBVpS4.08
PEG (NY)2.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 19.39% | ||
| ROCE | 16.37% | ||
| ROIC | 12.92% | ||
| ROICexc | 15.41% | ||
| ROICexgc | 17.59% | ||
| OM | 11.78% | ||
| PM (TTM) | 6.4% | ||
| GM | 61.48% | ||
| FCFM | 5.78% |
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-Score8
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 108.67% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.87% | ||
| Profit Quality | 90.25% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.11 |
F-Score8
WACC10.09%
ROIC/WACC1.28
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)25.44%
EPS 3Y-5.04%
EPS 5Y-11.72%
EPS Q2Q%37.5%
EPS Next Y6.58%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
EPS Next 5YN/A
Revenue 1Y (TTM)4.28%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%0.33%
Revenue Next Year-1.3%
Revenue Next 2Y1.72%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y46.8%
EBIT growth 3Y-2.44%
EBIT growth 5Y2.78%
EBIT Next Year56.42%
EBIT Next 3Y21.52%
EBIT Next 5YN/A
FCF growth 1Y391.3%
FCF growth 3Y5.56%
FCF growth 5Y23.15%
OCF growth 1Y183.02%
OCF growth 3Y6.81%
OCF growth 5Y16.86%