LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
21.94 USD
+0.44 (+2.05%)
21 USD
-0.94 (-4.28%)
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 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.
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 of 9.05%. This is amongst the best in 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 has a Return On Invested Capital of 12.69%. This is in the better half of the industry: LEVI outperforms 77.78% 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 11.80%.
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 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of LEVI has declined.
LEVI has a better Operating Margin (11.84%) than 82.22% of its industry peers.
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 (61.86%) is better than 82.22% 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
LEVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
LEVI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.04 indicates that LEVI is not in any danger for bankruptcy at the moment.
LEVI's Altman-Z score of 3.04 is fine compared to the rest of the industry. LEVI outperforms 62.22% of its industry peers.
LEVI has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as LEVI would need 3.24 years to pay back of all of its debts.
LEVI's Debt to FCF ratio of 3.24 is fine compared to the rest of the industry. LEVI outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that LEVI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, LEVI is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.15
WACC11.03%
2.3 Liquidity
A Current Ratio of 1.52 indicates that LEVI should not have too much problems paying its short term obligations.
The Current ratio of LEVI (1.52) is worse than 71.11% 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.
The Quick ratio of LEVI (0.87) is worse than 62.22% of its industry peers.
| 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.
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.
LEVI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.98% yearly.
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.
LEVI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
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
With a Price/Earnings ratio of 15.24, LEVI is valued correctly.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
LEVI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.67 indicates a correct valuation of LEVI.
66.67% of the companies in the same industry are more expensive than LEVI, based on the Price/Forward Earnings ratio.
LEVI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEVI is valued a bit cheaper than the industry average as 64.44% 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 | 26.46 | ||
| EV/EBITDA | 9.2 |
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.
The excellent profitability rating of LEVI may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.47, 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 1.87, LEVI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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.
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%
21.94
+0.44 (+2.05%)
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 Cap8.57B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts81.9
Price Target28.21 (28.58%)
Short Float %8.71%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 | 15.24 | ||
| Fwd PE | 14.67 | ||
| P/S | 1.35 | ||
| P/FCF | 26.46 | ||
| P/OCF | 15.31 | ||
| P/B | 3.96 | ||
| P/tB | 5.08 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)1.44
EY6.56%
EPS(NY)1.5
Fwd EY6.82%
FCF(TTM)0.83
FCFY3.78%
OCF(TTM)1.43
OCFY6.53%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.87
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 | 3.04 |
F-Score7
WACC11.03%
ROIC/WACC1.15
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 15.24 and the Price/Book (PB) ratio is 3.96.
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%.