LEVI STRAUSS & CO- CLASS A (LEVI)
US52736R1023 - Common Stock
Taking everything into account, LEVI scores 5 out of 10 in our fundamental rating. LEVI was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. LEVI has an average financial health and profitability rating. 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.
LEVI had positive earnings in 4 of the past 5 years.
LEVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.09%, LEVI perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.29%, LEVI is in line with its industry, outperforming 52.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.07%, LEVI is doing good in the industry, outperforming 72.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LEVI is above the industry average of 10.04%.
The 3 year average ROIC (13.88%) for LEVI is well above the current ROIC(9.07%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.29% | ||
| ROIC | 9.07% |
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
The Profit Margin of LEVI (2.06%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LEVI has declined.
With a Operating Margin value of 6.92%, LEVI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LEVI has declined.
LEVI's Gross Margin of 57.54% is fine compared to the rest of the industry. LEVI outperforms 78.00% of its industry peers.
LEVI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 2.06% | ||
| GM | 57.54% |
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.
LEVI has more shares outstanding than it did 5 years ago.
LEVI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.08 indicates that LEVI is not in any danger for bankruptcy at the moment.
LEVI has a Altman-Z score of 3.08. This is in the better half of the industry: LEVI outperforms 62.00% of its industry peers.
The Debt to FCF ratio of LEVI is 1.67, which is an excellent value as it means it would take LEVI, only 1.67 years of fcf income to pay off all of its debts.
LEVI's Debt to FCF ratio of 1.67 is fine compared to the rest of the industry. LEVI outperforms 64.00% of its industry peers.
LEVI has a Debt/Equity ratio of 0.51. This is a neutral value indicating LEVI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, LEVI is in line with its industry, outperforming 42.00% of the companies in the same industry.
Although LEVI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.96
WACC9.43%
2.3 Liquidity
LEVI has a Current Ratio of 1.43. This is a normal value and indicates that LEVI is financially healthy and should not expect problems in meeting its short term obligations.
LEVI's Current ratio of 1.43 is on the low side compared to the rest of the industry. LEVI is outperformed by 74.00% of its industry peers.
LEVI has a Quick Ratio of 1.43. 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 (0.78) is worse than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
LEVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.55%.
LEVI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.95% yearly.
The Revenue has decreased by -3.48% in the past year.
The Revenue has been growing slightly by 2.08% on average over the past years.
EPS 1Y (TTM)-25.55%
EPS 3Y76.52%
EPS 5Y-2.95%
EPS growth Q2Q-23.53%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y11.54%
Revenue growth 5Y2.08%
Revenue growth Q2Q-7.77%
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 17.13% yearly.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y17.6%
EPS Next 2Y16.4%
EPS Next 3Y17.11%
EPS Next 5Y17.13%
Revenue Next Year2.48%
Revenue Next 2Y3.96%
Revenue Next 3Y5.06%
Revenue Next 5Y6.8%
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
Based on the Price/Earnings ratio of 20.63, the valuation of LEVI can be described as rather expensive.
LEVI's Price/Earnings is on the same level as the industry average.
LEVI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.12, LEVI is valued correctly.
64.00% of the companies in the same industry are more expensive than LEVI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.67. LEVI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
LEVI's Enterprise Value to EBITDA ratio is in line with the industry average.
LEVI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.82 | ||
| EV/EBITDA | 15.41 |
4.3 Compensation for Growth
LEVI's 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 17.11% in the coming years.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y16.4%
EPS Next 3Y17.11%
5. Dividend
5.1 Amount
LEVI has a Yearly Dividend Yield of 2.34%.
LEVI's Dividend Yield is a higher than the industry average which is at 2.97.
Compared to an average S&P500 Dividend Yield of 2.45, LEVI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LEVI pays out 153.50% of its income as dividend. This is not a sustainable payout ratio.
DP153.5%
EPS Next 2Y16.4%
EPS Next 3Y17.11%
LEVI STRAUSS & CO- CLASS A
NYSE:LEVI (4/25/2024, 1:59:06 PM)
21.04
-0.53 (-2.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 14.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.92% | ||
| PM (TTM) | 2.06% | ||
| GM | 57.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-25.55%
EPS 3Y76.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y11.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y