LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - NYSE:LEVI - US52736R1023 - Common Stock
21.25 USD
+0.04 (+0.19%)
21.3402 USD
+0.09 (+0.42%)
Taking everything into account, LEVI scores 6 out of 10 in our fundamental rating. LEVI was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. LEVI has an excellent profitability rating, 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
In the past year LEVI was profitable.
In the past year LEVI had a positive cash flow from operations.
LEVI had positive earnings in 4 of the past 5 years.
In the past 5 years LEVI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LEVI (9.05%) is better than 85.42% of its industry peers.
With an excellent Return On Equity value of 27.87%, LEVI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
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.
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 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
LEVI's Profit Margin of 9.48% is amongst the best of the industry. LEVI outperforms 89.58% of its industry peers.
LEVI's Profit Margin has declined in the last couple of years.
The Operating Margin of LEVI (11.84%) is better than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LEVI is still creating some value.
LEVI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEVI has more shares outstanding
LEVI has a better debt/assets ratio than last year.
2.2 Solvency
LEVI has an Altman-Z score of 3.00. This indicates that LEVI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.00, LEVI perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 3.24, LEVI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
LEVI has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
LEVI has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 3 |
ROIC/WACC1.22
WACC10.37%
2.3 Liquidity
A Current Ratio of 1.52 indicates that LEVI should not have too much problems paying its short term obligations.
LEVI has a Current ratio of 1.52. This is in the lower half of the industry: LEVI underperforms 72.92% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.01% over the past year.
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.
The Revenue has been growing slightly by 1.98% on average over the past years.
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 9.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y6.58%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
EPS Next 5YN/A
Revenue Next Year-1.23%
Revenue Next 2Y1.87%
Revenue Next 3Y2.8%
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
The Price/Earnings ratio is 14.76, which indicates a correct valuation of LEVI.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LEVI to the average of the S&P500 Index (27.57), we can say LEVI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.36, 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 64.58% of the companies in the same industry.
LEVI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 14.36 |
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.
Based on the Price/Free Cash Flow ratio, LEVI is valued a bit cheaper than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.63 | ||
| EV/EBITDA | 8.92 |
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)2.24
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.55%.
Compared to an average industry Dividend Yield of 3.30, LEVI pays a better dividend. On top of this LEVI pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, LEVI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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.
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 2Y8.8%
EPS Next 3Y9.41%
21.25
+0.04 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners86.35%
Inst Owner Change0.09%
Ins Owners2.45%
Ins Owner Change-0.41%
Market Cap8.31B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts79
Price Target24.77 (16.56%)
Short Float %8.99%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)-3.9%
EPS NQ rev (3m)-6.63%
EPS NY rev (1m)0%
EPS NY rev (3m)5.91%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 14.36 | ||
| P/S | 1.31 | ||
| P/FCF | 25.63 | ||
| P/OCF | 14.83 | ||
| P/B | 3.84 | ||
| P/tB | 4.92 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)1.44
EY6.78%
EPS(NY)1.48
Fwd EY6.96%
FCF(TTM)0.83
FCFY3.9%
OCF(TTM)1.43
OCFY6.74%
SpS16.26
BVpS5.53
TBVpS4.32
PEG (NY)2.24
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 |
F-Score7
WACC10.37%
ROIC/WACC1.22
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 Y6.58%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
EPS Next 5YN/A
Revenue 1Y (TTM)5.9%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%1.75%
Revenue Next Year-1.23%
Revenue Next 2Y1.87%
Revenue Next 3Y2.8%
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%