LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
21.82 USD
+0.12 (+0.55%)
21.82 USD
0 (0%)
LEVI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 46 industry peers in the Textiles, Apparel & Luxury Goods industry. While LEVI has a great profitability rating, 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
The Return On Assets of LEVI (9.05%) is better 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 80.43% of its industry peers.
LEVI's Return On Invested Capital of 12.69% is fine compared to the rest of the industry. LEVI outperforms 78.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEVI 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
LEVI has a better Profit Margin (9.48%) than 86.96% of its industry peers.
LEVI's Profit Margin has declined in the last couple of years.
The Operating Margin of LEVI (11.84%) is better than 80.43% of its industry peers.
In the last couple of years the Operating Margin of LEVI has remained more or less at the same level.
LEVI has a Gross Margin of 61.86%. This is amongst the best in the industry. LEVI outperforms 82.61% of its industry peers.
LEVI's Gross Margin has improved in the last couple of years.
| 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
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 less shares outstanding
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
LEVI has an Altman-Z score of 3.03. This indicates that LEVI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.03, LEVI is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.24, LEVI is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
LEVI has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
LEVI's Debt to Equity ratio of 0.48 is in line compared 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 | 3.03 |
ROIC/WACC1.21
WACC10.53%
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.
The Current ratio of LEVI (1.52) is worse than 67.39% 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.
With a Quick ratio value of 0.87, LEVI is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| 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.
LEVI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.72% yearly.
Looking at the last year, LEVI shows a small growth in Revenue. The Revenue has grown by 5.90% in the last year.
Measured over the past years, LEVI shows a small growth in Revenue. The Revenue has been growing by 1.98% on average per year.
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
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.
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
A Price/Earnings ratio of 15.15 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 69.57% of the companies listed in the same industry.
LEVI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 14.59, which indicates a correct valuation of LEVI.
LEVI's Price/Forward Earnings ratio is in line with the industry average.
LEVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEVI is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEVI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.31 | ||
| EV/EBITDA | 9.15 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.86
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.
Compared to an average industry Dividend Yield of 3.50, LEVI pays a better dividend. On top of this LEVI pays more dividend than 84.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LEVI has a dividend comparable with the average S&P500 company.
| 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
34.78% of the earnings are spent on dividend by LEVI. This is a low number and sustainable payout ratio.
LEVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.78%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
21.82
+0.12 (+0.55%)
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 Cap8.53B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts81.9
Price Target27.68 (26.86%)
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 | 15.15 | ||
| Fwd PE | 14.59 | ||
| P/S | 1.34 | ||
| P/FCF | 26.31 | ||
| P/OCF | 15.23 | ||
| P/B | 3.94 | ||
| P/tB | 5.05 | ||
| EV/EBITDA | 9.15 |
EPS(TTM)1.44
EY6.6%
EPS(NY)1.5
Fwd EY6.86%
FCF(TTM)0.83
FCFY3.8%
OCF(TTM)1.43
OCFY6.57%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.86
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 | 3.03 |
F-Score7
WACC10.53%
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 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 15.15 and the Price/Book (PB) ratio is 3.94.
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%.