LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - NYSE:LEVI - US52736R1023 - Common Stock
20.77 USD
-0.57 (-2.67%)
20.91 USD
+0.14 (+0.67%)
LEVI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LEVI had positive earnings in the past year.
LEVI had a positive operating cash flow in the past year.
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
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.
LEVI has a better Return On Equity (27.87%) than 81.25% 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 75.00% 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 12.15%.
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
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's Operating Margin of 11.84% is amongst the best of the industry. LEVI outperforms 81.25% of its industry peers.
In the last couple of years the Operating Margin of LEVI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 61.86%, LEVI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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
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
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 2.98. 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 2.98. This is comparable to the rest of the industry: LEVI outperforms 58.33% 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.
LEVI has a Debt to FCF ratio of 3.24. This is in the better half of the industry: LEVI outperforms 66.67% of its industry peers.
LEVI has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.98 |
ROIC/WACC1.24
WACC10.22%
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: 72.92% 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.
Looking at the Quick ratio, with a value of 0.87, LEVI is doing worse than 66.67% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 5.90% in the past year.
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.
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
A Price/Earnings ratio of 14.42 indicates a correct valuation of LEVI.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than 72.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, LEVI is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.88 indicates a correct valuation of LEVI.
Based on the Price/Forward Earnings ratio, LEVI is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
LEVI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 13.88 |
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 ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 8.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LEVI may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y9.4%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, LEVI has a reasonable but not impressive dividend return.
LEVI's Dividend Yield is rather good when compared to the industry average which is at 3.18. LEVI pays more dividend than 87.50% of the companies in the same industry.
LEVI's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
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 2Y9.4%
EPS Next 3Y10.08%
20.77
-0.57 (-2.67%)
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-0.33%
Ins Owners2.45%
Ins Owner Change-5.2%
Market Cap8.12B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts79
Price Target24.77 (19.26%)
Short Float %7.06%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)2%
PT rev (3m)6.86%
EPS NQ rev (1m)-4.05%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)1.49%
EPS NY rev (3m)7.49%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)1%
Revenue NY rev (3m)3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.28 | ||
| P/FCF | 25.05 | ||
| P/OCF | 14.49 | ||
| P/B | 3.75 | ||
| P/tB | 4.81 | ||
| EV/EBITDA | 8.72 |
EPS(TTM)1.44
EY6.93%
EPS(NY)1.5
Fwd EY7.2%
FCF(TTM)0.83
FCFY3.99%
OCF(TTM)1.43
OCFY6.9%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)1.77
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 | 2.98 |
F-Score7
WACC10.22%
ROIC/WACC1.24
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 14.42 and the Price/Book (PB) ratio is 3.75.
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%.