LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - NYSE:LEVI - US52736R1023 - Common Stock
19.47 USD
-0.52 (-2.6%)
19.53 USD
+0.06 (+0.31%)
Overall LEVI gets a fundamental rating of 6 out of 10. We evaluated LEVI against 48 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 is not valued too expensively and it also shows a decent 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.
LEVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.05%, LEVI belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.87%, LEVI belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.69%, LEVI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 12.15%.
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
Looking at the Profit Margin, with a value of 9.48%, LEVI belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Profit Margin of LEVI has declined.
LEVI has a Operating Margin of 11.84%. This is amongst the best in the industry. LEVI outperforms 81.25% of its industry peers.
LEVI's Operating Margin has been stable in the last couple of years.
LEVI's Gross Margin of 61.86% is amongst the best of the industry. LEVI outperforms 83.33% of its industry peers.
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
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
LEVI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LEVI has been reduced compared to a year ago.
2.2 Solvency
LEVI has an Altman-Z score of 2.94. This is not the best score and indicates that LEVI is in the grey zone with still only limited risk for bankruptcy at the moment.
LEVI has a Altman-Z score of 2.94. This is in the better half of the industry: LEVI outperforms 60.42% 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 66.67% 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's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. LEVI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.2
WACC10.58%
2.3 Liquidity
A Current Ratio of 1.52 indicates that LEVI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, LEVI is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
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: 64.58% 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
LEVI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.01%, which is quite impressive.
Measured over the past years, LEVI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.72% on average per year.
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
LEVI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
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-0.31%
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
Based on the Price/Earnings ratio of 13.52, the valuation of LEVI can be described as correct.
70.83% of the companies in the same industry are more expensive than LEVI, based on the Price/Earnings ratio.
LEVI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 13.01, the valuation of LEVI can be described as correct.
LEVI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LEVI to the average of the S&P500 Index (22.27), we can say LEVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 13.01 |
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.
LEVI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.48 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
The 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)1.66
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
LEVI's Dividend Yield is rather good when compared to the industry average which is at 3.35. LEVI pays more dividend than 85.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LEVI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
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%
19.47
-0.52 (-2.6%)
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-0.44%
Ins Owners2.45%
Ins Owner Change-5.2%
Market Cap7.61B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts79
Price Target27.68 (42.17%)
Short Float %7.06%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)13.98%
PT rev (3m)19.41%
EPS NQ rev (1m)-4.04%
EPS NQ rev (3m)-4.05%
EPS NY rev (1m)1.49%
EPS NY rev (3m)7.49%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 13.01 | ||
| P/S | 1.2 | ||
| P/FCF | 23.48 | ||
| P/OCF | 13.59 | ||
| P/B | 3.52 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 8.4 |
EPS(TTM)1.44
EY7.4%
EPS(NY)1.5
Fwd EY7.68%
FCF(TTM)0.83
FCFY4.26%
OCF(TTM)1.43
OCFY7.36%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.66
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 | 2.94 |
F-Score7
WACC10.58%
ROIC/WACC1.2
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-0.31%
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 13.52 and the Price/Book (PB) ratio is 3.52.
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%.