LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
NYSE:LEVI - New York Stock Exchange, Inc. - US52736R1023 - Common Stock - Currency: USD
LEVI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 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
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.
Each year in the past 5 years LEVI had a positive operating cash flow.
1.2 Ratios
LEVI has a Return On Assets of 6.20%. This is in the better half of the industry: LEVI outperforms 70.00% of its industry peers.
With a decent Return On Equity value of 19.39%, LEVI is doing good in the industry, outperforming 78.00% of the companies in the same industry.
LEVI has a better Return On Invested Capital (12.92%) than 82.00% 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 10.79%.
The last Return On Invested Capital (12.92%) for LEVI is above the 3 year average (11.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 19.39% | ||
| ROIC | 12.92% |
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
LEVI's Profit Margin of 6.40% is fine compared to the rest of the industry. LEVI outperforms 70.00% of its industry peers.
LEVI's Profit Margin has declined in the last couple of years.
LEVI's Operating Margin of 11.78% is fine compared to the rest of the industry. LEVI outperforms 80.00% of its industry peers.
LEVI's Operating Margin has been stable in the last couple of years.
The Gross Margin of LEVI (61.48%) is better than 82.00% of its industry peers.
In the last couple of years the Gross Margin of LEVI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.78% | ||
| PM (TTM) | 6.4% | ||
| GM | 61.48% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEVI is still creating some value.
Compared to 1 year ago, LEVI has less shares outstanding
The number of shares outstanding for LEVI has been increased compared to 5 years ago.
LEVI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.97 indicates that LEVI is not a great score, but indicates only limited risk for bankruptcy at the moment.
LEVI has a Altman-Z score (2.97) which is in line with its industry peers.
The Debt to FCF ratio of LEVI is 2.84, which is a good value as it means it would take LEVI, 2.84 years of fcf income to pay off all of its debts.
LEVI has a better Debt to FCF ratio (2.84) than 68.00% of its industry peers.
LEVI has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
LEVI has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: LEVI outperforms 46.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.58
WACC8.19%
2.3 Liquidity
LEVI has a Current Ratio of 1.48. 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 worse Current ratio (1.48) than 74.00% of its industry peers.
A Quick Ratio of 0.85 indicates that LEVI may have some problems paying its short term obligations.
LEVI has a Quick ratio of 0.85. This is in the lower half of the industry: LEVI underperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.44% over the past year.
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 4.28% in the last 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)25.44%
EPS 3Y-5.04%
EPS 5Y-11.72%
EPS Q2Q%37.5%
Revenue 1Y (TTM)4.28%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%0.33%
3.2 Future
The Earnings Per Share is expected to grow by 6.45% on average over the next years.
LEVI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y0.63%
EPS Next 2Y5.45%
EPS Next 3Y6.45%
EPS Next 5YN/A
Revenue Next Year-1.3%
Revenue Next 2Y1.72%
Revenue Next 3Y2.69%
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
Based on the Price/Earnings ratio of 14.08, the valuation of LEVI can be described as correct.
LEVI's Price/Earnings ratio is a bit cheaper when compared to the industry. LEVI is cheaper than 76.00% of the companies in the same industry.
LEVI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.48 indicates a correct valuation of LEVI.
LEVI's Price/Forward Earnings is on the same level as the industry average.
LEVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 14.48 |
4.2 Price Multiples
LEVI's Enterprise Value to EBITDA is on the same level as the industry average.
LEVI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 8.62 |
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.
LEVI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)22.46
PEG (5Y)N/A
EPS Next 2Y5.45%
EPS Next 3Y6.45%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.69%. 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 3.93. LEVI pays more dividend than 82.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LEVI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
50.75% of the earnings are spent on dividend by LEVI. This is a bit on the high side, but may be sustainable.
LEVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.75%
EPS Next 2Y5.45%
EPS Next 3Y6.45%
NYSE:LEVI (8/8/2025, 2:47:08 PM)
20.13
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners85.89%
Inst Owner Change0.46%
Ins Owners2.52%
Ins Owner Change-0.42%
Market Cap7.96B
Analysts81.05
Price Target23.18 (15.15%)
Short Float %7.5%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.5
Dividend Growth(5Y)11.52%
DP50.75%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.98%
Min EPS beat(2)32.77%
Max EPS beat(2)61.2%
EPS beat(4)4
Avg EPS beat(4)24.96%
Min EPS beat(4)1.37%
Max EPS beat(4)61.2%
EPS beat(8)8
Avg EPS beat(8)21.34%
EPS beat(12)12
Avg EPS beat(12)18.98%
EPS beat(16)16
Avg EPS beat(16)17.8%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)3.73%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)4.41%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)3
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-1.14%
PT rev (1m)14.21%
PT rev (3m)21.82%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)3.26%
Revenue NQ rev (3m)3.68%
Revenue NY rev (1m)2.4%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 14.48 | ||
| P/S | 1.26 | ||
| P/FCF | 21.77 | ||
| P/OCF | 13.55 | ||
| P/B | 3.81 | ||
| P/tB | 4.93 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)1.43
EY7.1%
EPS(NY)1.39
Fwd EY6.9%
FCF(TTM)0.92
FCFY4.59%
OCF(TTM)1.49
OCFY7.38%
SpS16
BVpS5.28
TBVpS4.08
PEG (NY)22.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 19.39% | ||
| ROCE | 16.37% | ||
| ROIC | 12.92% | ||
| ROICexc | 15.41% | ||
| ROICexgc | 17.59% | ||
| OM | 11.78% | ||
| PM (TTM) | 6.4% | ||
| GM | 61.48% | ||
| FCFM | 5.78% |
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%
ROICexcg growth 3Y-10.85%
ROICexcg 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-Score8
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 108.67% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.87% | ||
| Profit Quality | 90.25% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.97 |
F-Score8
WACC8.19%
ROIC/WACC1.58
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)25.44%
EPS 3Y-5.04%
EPS 5Y-11.72%
EPS Q2Q%37.5%
EPS Next Y0.63%
EPS Next 2Y5.45%
EPS Next 3Y6.45%
EPS Next 5YN/A
Revenue 1Y (TTM)4.28%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%0.33%
Revenue Next Year-1.3%
Revenue Next 2Y1.72%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y46.8%
EBIT growth 3Y-2.44%
EBIT growth 5Y2.78%
EBIT Next Year50.79%
EBIT Next 3Y19.07%
EBIT Next 5YN/A
FCF growth 1Y391.3%
FCF growth 3Y5.56%
FCF growth 5Y23.15%
OCF growth 1Y183.02%
OCF growth 3Y6.81%
OCF growth 5Y16.86%