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. Both the profitability and the financial health of LEVI get a neutral evaluation. Nothing too spectacular is happening here. LEVI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEVI had positive earnings in the past year.
In the past year LEVI had a positive cash flow from operations.
Of the past 5 years LEVI 4 years were profitable.
Each year in the past 5 years LEVI had a positive operating cash flow.
1.2 Ratios
LEVI has a Return On Assets (3.30%) which is comparable to the rest of the industry.
LEVI has a better Return On Equity (10.69%) than 67.35% of its industry peers.
LEVI's Return On Invested Capital of 11.34% is fine compared to the rest of the industry. LEVI outperforms 73.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LEVI is in line with the industry average of 11.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 10.69% | ||
| ROIC | 11.34% |
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 has a Profit Margin (3.32%) which is in line with its industry peers.
In the last couple of years the Profit Margin of LEVI has declined.
Looking at the Operating Margin, with a value of 9.90%, LEVI is in the better half of the industry, outperforming 71.43% 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.
The Gross Margin of LEVI (60.04%) is better than 77.55% of its industry peers.
In the last couple of years the Gross Margin of LEVI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.9% | ||
| PM (TTM) | 3.32% | ||
| GM | 60.04% |
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.
LEVI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEVI has more shares outstanding
The debt/assets ratio for LEVI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
LEVI has a Altman-Z score of 2.85. This is comparable to the rest of the industry: LEVI outperforms 53.06% of its industry peers.
The Debt to FCF ratio of LEVI is 1.51, which is an excellent value as it means it would take LEVI, only 1.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LEVI (1.51) is better than 77.55% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that LEVI is somewhat dependend on debt financing.
LEVI has a Debt to Equity ratio (0.51) 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 | 0.51 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.17
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.42 indicates that LEVI should not have too much problems paying its short term obligations.
LEVI has a worse Current ratio (1.42) than 77.55% of its industry peers.
LEVI has a Quick Ratio of 1.42. 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 0.80. This is in the lower half of the industry: LEVI underperforms 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
LEVI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.64%, which is quite good.
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 2.85% in the last 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)13.64%
EPS 3Y-5.04%
EPS 5Y-11.61%
EPS Q2Q%13.64%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%12.02%
3.2 Future
The Earnings Per Share is expected to grow by 9.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y1.66%
EPS Next 2Y7.9%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue Next Year1.4%
Revenue Next 2Y2.99%
Revenue Next 3Y3.75%
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
LEVI is valuated correctly with a Price/Earnings ratio of 14.71.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. LEVI is valued rather cheaply when compared to this.
LEVI is valuated correctly with a Price/Forward Earnings ratio of 14.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 65.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, LEVI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 14.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 65.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LEVI is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LEVI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.88
PEG (5Y)N/A
EPS Next 2Y7.9%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.80%.
LEVI's Dividend Yield is rather good when compared to the industry average which is at 2.88. LEVI pays more dividend than 87.76% of the companies in the same industry.
LEVI's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
94.21% of the earnings are spent on dividend by LEVI. This is not a sustainable payout ratio.
LEVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP94.21%
EPS Next 2Y7.9%
EPS Next 3Y9.6%
18.39
-0.28 (-1.5%)
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-0.69%
Ins Owners3.04%
Ins Owner Change5.58%
Market Cap7.28B
Analysts76
Price Target22.76 (23.76%)
Short Float %5.3%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend0.5
Dividend Growth(5Y)11.52%
DP94.21%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.94%
Min EPS beat(2)1.37%
Max EPS beat(2)4.52%
EPS beat(4)4
Avg EPS beat(4)18.33%
Min EPS beat(4)1.37%
Max EPS beat(4)44.03%
EPS beat(8)8
Avg EPS beat(8)14.18%
EPS beat(12)12
Avg EPS beat(12)13.74%
EPS beat(16)16
Avg EPS beat(16)23.4%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)4.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)4.41%
Revenue beat(8)2
Avg Revenue beat(8)-1.31%
Revenue beat(12)4
Avg Revenue beat(12)-1.4%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)-0.34%
PT rev (3m)-0.78%
EPS NQ rev (1m)-11.21%
EPS NQ rev (3m)-13.27%
EPS NY rev (1m)-11.14%
EPS NY rev (3m)-11.14%
Revenue NQ rev (1m)-5.86%
Revenue NQ rev (3m)-6.65%
Revenue NY rev (1m)-2.98%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 14.47 | ||
| P/S | 1.15 | ||
| P/FCF | 10.85 | ||
| P/OCF | 8.1 | ||
| P/B | 3.69 | ||
| P/tB | 4.87 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)1.25
EY6.8%
EPS(NY)1.27
Fwd EY6.91%
FCF(TTM)1.69
FCFY9.22%
OCF(TTM)2.27
OCFY12.34%
SpS16.05
BVpS4.98
TBVpS3.78
PEG (NY)8.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 10.69% | ||
| ROCE | 14.41% | ||
| ROIC | 11.34% | ||
| ROICexc | 13.46% | ||
| ROICexgc | 15.44% | ||
| OM | 9.9% | ||
| PM (TTM) | 3.32% | ||
| GM | 60.04% | ||
| FCFM | 10.56% |
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-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 117.75% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 16.47 | ||
| Cash Conversion | 109.26% | ||
| Profit Quality | 318.42% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.85 |
F-Score6
WACC9.66%
ROIC/WACC1.17
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)13.64%
EPS 3Y-5.04%
EPS 5Y-11.61%
EPS Q2Q%13.64%
EPS Next Y1.66%
EPS Next 2Y7.9%
EPS Next 3Y9.6%
EPS Next 5YN/A
Revenue 1Y (TTM)2.85%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%12.02%
Revenue Next Year1.4%
Revenue Next 2Y2.99%
Revenue Next 3Y3.75%
Revenue Next 5YN/A
EBIT growth 1Y34.14%
EBIT growth 3Y-2.44%
EBIT growth 5Y2.78%
EBIT Next Year52.87%
EBIT Next 3Y22.39%
EBIT Next 5YN/A
FCF growth 1Y459.08%
FCF growth 3Y5.56%
FCF growth 5Y23.15%
OCF growth 1Y106.29%
OCF growth 3Y6.81%
OCF growth 5Y16.86%