LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
22.27 USD
+0.08 (+0.36%)
22.12 USD
-0.15 (-0.67%)
We assign a fundamental rating of 6 out of 10 to LEVI. LEVI was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While LEVI belongs to the best of the industry regarding profitability, 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.
In the past year LEVI had a positive cash flow from operations.
LEVI had positive earnings in 4 of the past 5 years.
In the past 5 years LEVI always reported a positive cash flow from operatings.
1.2 Ratios
LEVI has a better Return On Assets (9.05%) than 89.13% of its industry peers.
LEVI has a Return On Equity of 27.87%. This is amongst the best in the industry. LEVI outperforms 82.61% 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 11.82%.
The last Return On Invested Capital (12.69%) for LEVI is above the 3 year average (11.40%), which is a sign of increasing profitability.
| 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.
Looking at the Operating Margin, with a value of 11.84%, LEVI belongs to the top of the industry, outperforming 80.43% 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.
Looking at the Gross Margin, with a value of 61.86%, LEVI belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEVI is still creating some value.
LEVI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LEVI has been increased compared to 5 years ago.
LEVI has a better debt/assets ratio than last year.
2.2 Solvency
LEVI has an Altman-Z score of 3.06. This indicates that LEVI is financially healthy and has little risk of bankruptcy at the moment.
LEVI has a better Altman-Z score (3.06) than 65.22% 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.
With a decent Debt to FCF ratio value of 3.24, LEVI is doing good in the industry, outperforming 67.39% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that LEVI is not too dependend on debt financing.
LEVI has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: LEVI outperforms 45.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.17
WACC10.85%
2.3 Liquidity
LEVI has a Current Ratio of 1.52. This is a normal value and indicates that LEVI is financially healthy and should not expect problems in meeting its short term obligations.
LEVI has a worse Current ratio (1.52) than 69.57% of its industry peers.
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.
The Revenue has been growing slightly by 1.98% on average over the past years.
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
Based on estimates for the next years, LEVI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.08% on average per year.
Based on estimates for the next years, LEVI will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
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.
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 15.47.
69.57% of the companies in the same industry are more expensive than LEVI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.49, LEVI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.89, the valuation of LEVI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 60.87% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LEVI to the average of the S&P500 Index (23.69), we can say LEVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 14.89 |
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.
LEVI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.86 | ||
| EV/EBITDA | 9.33 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.22, LEVI pays a better dividend. On top of this LEVI pays more dividend than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, LEVI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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.
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 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%
22.27
+0.08 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners87.36%
Inst Owner Change-0.85%
Ins Owners1.11%
Ins Owner Change-5.1%
Market Cap8.70B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts81.9
Price Target28.21 (26.67%)
Short Float %8.71%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)1.88%
PT rev (3m)16.12%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-4.31%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 14.89 | ||
| P/S | 1.37 | ||
| P/FCF | 26.86 | ||
| P/OCF | 15.54 | ||
| P/B | 4.02 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)1.44
EY6.47%
EPS(NY)1.5
Fwd EY6.72%
FCF(TTM)0.83
FCFY3.72%
OCF(TTM)1.43
OCFY6.44%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.9
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 | 3.06 |
F-Score7
WACC10.85%
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)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 Year58.5%
EBIT Next 3Y23.32%
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 5 / 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 15.47 and the Price/Book (PB) ratio is 4.02.
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%.