LEVI STRAUSS & CO- CLASS A (LEVI)
US52736R1023 - Common Stock
Overall LEVI gets a fundamental rating of 5 out of 10. We evaluated LEVI against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of LEVI get a neutral evaluation. Nothing too spectacular is happening here. LEVI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEVI had positive earnings in the past year.
In the past year LEVI had a positive cash flow from operations.
Of the past 5 years LEVI 4 years were profitable.
LEVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LEVI (2.48%) is comparable to the rest of the industry.
LEVI has a Return On Equity of 8.28%. This is in the better half of the industry: LEVI outperforms 64.00% of its industry peers.
LEVI has a better Return On Invested Capital (10.43%) than 74.00% of its industry peers.
LEVI had an Average Return On Invested Capital over the past 3 years of 13.88%. This is above the industry average of 11.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 8.28% | ||
| ROIC | 10.43% |
ROA(3y)7.64%
ROA(5y)6%
ROE(3y)25.11%
ROE(5y)18.16%
ROIC(3y)13.88%
ROIC(5y)12.07%
1.3 Margins
Looking at the Profit Margin, with a value of 2.52%, LEVI is in line with its industry, outperforming 54.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LEVI has declined.
The Operating Margin of LEVI (8.04%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LEVI has declined.
The Gross Margin of LEVI (59.09%) is better than 76.00% of its industry peers.
In the last couple of years the Gross Margin of LEVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.04% | ||
| PM (TTM) | 2.52% | ||
| GM | 59.09% |
OM growth 3Y55.99%
OM growth 5Y-4.78%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y2.49%
GM growth 5Y1.14%
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.
LEVI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LEVI has been increased compared to 5 years ago.
Compared to 1 year ago, LEVI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, LEVI is in line with its industry, outperforming 48.00% of the companies in the same industry.
The Debt to FCF ratio of LEVI is 1.60, which is an excellent value as it means it would take LEVI, only 1.60 years of fcf income to pay off all of its debts.
LEVI has a Debt to FCF ratio of 1.60. This is in the better half of the industry: LEVI outperforms 72.00% of its industry peers.
LEVI has a Debt/Equity ratio of 0.55. This is a neutral value indicating LEVI is somewhat dependend on debt financing.
The Debt to Equity ratio of LEVI (0.55) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for LEVI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.22
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.41 indicates that LEVI should not have too much problems paying its short term obligations.
LEVI's Current ratio of 1.41 is on the low side compared to the rest of the industry. LEVI is outperformed by 82.00% of its industry peers.
LEVI has a Quick Ratio of 1.41. 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's Quick ratio of 0.76 is on the low side compared to the rest of the industry. LEVI is outperformed by 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
LEVI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.00%, which is quite good.
The Earnings Per Share has been decreasing by -2.95% on average over the past years.
Looking at the last year, LEVI shows a small growth in Revenue. The Revenue has grown by 0.53% in the last year.
Measured over the past years, LEVI shows a small growth in Revenue. The Revenue has been growing by 2.08% on average per year.
EPS 1Y (TTM)19%
EPS 3Y76.52%
EPS 5Y-2.95%
EPS Q2Q%17.86%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y11.54%
Revenue growth 5Y2.08%
Sales Q2Q%0.38%
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 13.51% yearly.
LEVI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y14.02%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
EPS Next 5Y13.51%
Revenue Next Year0.73%
Revenue Next 2Y2.6%
Revenue Next 3Y3.5%
Revenue Next 5Y5.57%
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
A Price/Earnings ratio of 14.61 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 76.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. LEVI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.16 indicates a correct valuation of LEVI.
Based on the Price/Forward Earnings ratio, LEVI is valued cheaper than 82.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, LEVI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
70.00% 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 ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 10.41 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as LEVI's earnings are expected to grow with 13.13% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 3.00%.
Compared to an average industry Dividend Yield of 2.86, LEVI pays a better dividend. On top of this LEVI pays more dividend than 88.00% of the companies listed in the same industry.
LEVI's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
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)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
125.61% of the earnings are spent on dividend by LEVI. This is not a sustainable payout ratio.
DP125.61%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
LEVI STRAUSS & CO- CLASS A
NYSE:LEVI (12/20/2024, 8:22:04 PM)
After market: 17.38 -0.01 (-0.06%)17.39
+0.74 (+4.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners87.85%
Inst Owner Change1.68%
Ins Owners3.04%
Ins Owner Change3.87%
Market Cap6.90B
Analysts75.79
Price Target22.83 (31.28%)
Short Float %5.95%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Dividend Growth(5Y)N/A
DP125.61%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.27%
Min EPS beat(2)4.52%
Max EPS beat(2)44.03%
EPS beat(4)4
Avg EPS beat(4)18.19%
Min EPS beat(4)0.79%
Max EPS beat(4)44.03%
EPS beat(8)8
Avg EPS beat(8)15.75%
EPS beat(12)12
Avg EPS beat(12)13.66%
EPS beat(16)16
Avg EPS beat(16)25.25%
Revenue beat(2)0
Avg Revenue beat(2)-3.37%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)-1.29%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)3
Avg Revenue beat(12)-1.9%
Revenue beat(16)6
Avg Revenue beat(16)-1.03%
PT rev (1m)-0.44%
PT rev (3m)-3.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.16 | ||
| P/S | 1.12 | ||
| P/FCF | 10.75 | ||
| P/OCF | 8.02 | ||
| P/B | 3.68 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)1.19
EY6.84%
EPS(NY)1.43
Fwd EY8.22%
FCF(TTM)1.62
FCFY9.3%
OCF(TTM)2.17
OCFY12.47%
SpS15.52
BVpS4.72
TBVpS3.51
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 8.28% | ||
| ROCE | 11.5% | ||
| ROIC | 10.43% | ||
| ROICexc | 12.04% | ||
| ROICexgc | 13.81% | ||
| OM | 8.04% | ||
| PM (TTM) | 2.52% | ||
| GM | 59.09% | ||
| FCFM | 10.42% |
ROA(3y)7.64%
ROA(5y)6%
ROE(3y)25.11%
ROE(5y)18.16%
ROIC(3y)13.88%
ROIC(5y)12.07%
ROICexc(3y)16.47%
ROICexc(5y)15.53%
ROICexgc(3y)20.33%
ROICexgc(5y)18.72%
ROCE(3y)15.31%
ROCE(5y)13.32%
ROICexcg growth 3Y51.96%
ROICexcg growth 5Y-16.69%
ROICexc growth 3Y50.61%
ROICexc growth 5Y-16.56%
OM growth 3Y55.99%
OM growth 5Y-4.78%
PM growth 3YN/A
PM growth 5Y-4.47%
GM growth 3Y2.49%
GM growth 5Y1.14%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 120.01% | ||
| Cap/Sales | 3.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.99% | ||
| Profit Quality | 414% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.66 |
F-Score6
WACC8.53%
ROIC/WACC1.22
Cap/Depr(3y)158.52%
Cap/Depr(5y)141.8%
Cap/Sales(3y)4.11%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19%
EPS 3Y76.52%
EPS 5Y-2.95%
EPS Q2Q%17.86%
EPS Next Y14.02%
EPS Next 2Y14.02%
EPS Next 3Y13.13%
EPS Next 5Y13.51%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y11.54%
Revenue growth 5Y2.08%
Sales Q2Q%0.38%
Revenue Next Year0.73%
Revenue Next 2Y2.6%
Revenue Next 3Y3.5%
Revenue Next 5Y5.57%
EBIT growth 1Y7.45%
EBIT growth 3Y74%
EBIT growth 5Y-2.8%
EBIT Next Year54.13%
EBIT Next 3Y21.32%
EBIT Next 5Y20.03%
FCF growth 1Y231.73%
FCF growth 3Y-29.27%
FCF growth 5Y-14.39%
OCF growth 1Y91.65%
OCF growth 3Y-2.48%
OCF growth 5Y0.71%