LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
21.205 USD
-0.04 (-0.16%)
Overall LEVI gets a fundamental rating of 6 out of 10. We evaluated LEVI against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. LEVI has an excellent profitability rating, 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.
- In the past year LEVI had a positive cash flow from operations.
- Of the past 5 years LEVI 4 years were profitable.
- In the past 5 years LEVI always reported a positive cash flow from operatings.
1.2 Ratios
- LEVI's Return On Assets of 9.05% is amongst the best of the industry. LEVI outperforms 88.89% of its industry peers.
- The Return On Equity of LEVI (27.87%) is better than 84.44% of its industry peers.
- LEVI's Return On Invested Capital of 12.69% is fine compared to the rest of the industry. LEVI outperforms 77.78% 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 11.59%.
- 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 Profit Margin of 9.48%. This is amongst the best in the industry. LEVI outperforms 88.89% 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 82.22% of its industry peers.
- LEVI's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 61.86%, LEVI belongs to the best of the industry, outperforming 82.22% 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
- LEVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for LEVI has been reduced compared to 1 year ago.
- LEVI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LEVI has an improved debt to assets ratio.
2.2 Solvency
- LEVI has an Altman-Z score of 3.00. This indicates that LEVI is financially healthy and has little risk of bankruptcy at the moment.
- LEVI has a Altman-Z score of 3.00. This is in the better half of the industry: LEVI outperforms 66.67% 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.
- Looking at the Debt to FCF ratio, with a value of 3.24, LEVI is in the better half of the industry, outperforming 68.89% 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 has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 3 |
ROIC/WACC1.14
WACC11.16%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that LEVI should not have too much problems paying its short term obligations.
- LEVI has a Current ratio of 1.52. This is in the lower half of the industry: LEVI underperforms 71.11% of its industry peers.
- A Quick Ratio of 0.87 indicates that LEVI may have some problems paying its short term obligations.
- With a Quick ratio value of 0.87, LEVI is not doing good in the industry: 62.22% 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.
- LEVI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
- 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 10.53% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y8.29%
EPS Next 2Y9.75%
EPS Next 3Y10.53%
EPS Next 5YN/A
Revenue Next Year-0.22%
Revenue Next 2Y2.54%
Revenue Next 3Y3.39%
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
- The Price/Earnings ratio is 14.73, which indicates a correct valuation of LEVI.
- LEVI's Price/Earnings ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 73.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, LEVI is valued a bit cheaper.
- LEVI is valuated correctly with a Price/Forward Earnings ratio of 14.08.
- LEVI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 71.11% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of LEVI to the average of the S&P500 Index (25.98), we can say LEVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LEVI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as LEVI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.57 | ||
| EV/EBITDA | 8.91 |
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)1.78
PEG (5Y)N/A
EPS Next 2Y9.75%
EPS Next 3Y10.53%
5. Dividend
5.1 Amount
- LEVI has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.45, LEVI pays a better dividend. On top of this LEVI pays more dividend than 84.44% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, LEVI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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.
- 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 2Y9.75%
EPS Next 3Y10.53%
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 for 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.
What are the PE and PB ratios of LEVI STRAUSS & CO- CLASS A (LEVI) stock?
The Price/Earnings (PE) ratio for LEVI STRAUSS & CO- CLASS A (LEVI) is 14.73 and the Price/Book (PB) ratio is 3.83.
How sustainable is the dividend of LEVI STRAUSS & CO- CLASS A (LEVI) stock?
The dividend rating of LEVI STRAUSS & CO- CLASS A (LEVI) is 6 / 10 and the dividend payout ratio is 34.78%.