LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
21.23 USD
-0.48 (-2.21%)
21.43 USD
+0.2 (+0.94%)
LEVI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
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.
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
Looking at the Return On Assets, with a value of 9.05%, LEVI belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Equity of LEVI (27.87%) is better than 84.44% of its industry peers.
The Return On Invested Capital of LEVI (12.69%) is better than 77.78% of its industry peers.
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 11.70%.
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
The Profit Margin of LEVI (9.48%) is better than 88.89% of its industry peers.
LEVI's Profit Margin has declined in the last couple of years.
LEVI's Operating Margin of 11.84% is amongst the best of the industry. LEVI outperforms 82.22% 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 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
Compared to 5 years ago, LEVI has more shares outstanding
Compared to 1 year ago, LEVI has an improved debt to assets ratio.
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.
The Altman-Z score of LEVI (3.03) is better than 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.
The Debt to Equity ratio of LEVI (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.15
WACC11.05%
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.
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.
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.
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 10.08% 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
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
With a Price/Earnings ratio of 14.74, LEVI is valued correctly.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 71.11% of the companies are valued more expensively.
LEVI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
Based on the Price/Forward Earnings ratio of 14.19, 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 (24.01), we can say LEVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 14.19 |
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.
LEVI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.6 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LEVI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.46%.
LEVI's Dividend Yield is rather good when compared to the industry average which is at 1.50. LEVI pays more dividend than 82.22% of the companies 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 | 2.46% |
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.
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.
The dividend of LEVI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.78%
EPS Next 2Y9.4%
EPS Next 3Y10.08%
21.23
-0.48 (-2.21%)
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-4.94%
Market Cap8.30B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts81.9
Price Target28.21 (32.88%)
Short Float %8.93%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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 | 14.74 | ||
| Fwd PE | 14.19 | ||
| P/S | 1.31 | ||
| P/FCF | 25.6 | ||
| P/OCF | 14.81 | ||
| P/B | 3.84 | ||
| P/tB | 4.91 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)1.44
EY6.78%
EPS(NY)1.5
Fwd EY7.05%
FCF(TTM)0.83
FCFY3.91%
OCF(TTM)1.43
OCFY6.75%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.81
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
WACC11.05%
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 14.74 and the Price/Book (PB) ratio is 3.84.
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%.