LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LEVI - US52736R1023 - Common Stock
21.11 USD
-0.07 (-0.33%)
21.11 USD
0 (0%)
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. LEVI has an excellent profitability rating, 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 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.87%, LEVI belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
LEVI's Return On Invested Capital of 12.69% is fine compared to the rest of the industry. LEVI outperforms 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 11.62%.
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
With an excellent Profit Margin value of 9.48%, LEVI belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of LEVI has declined.
LEVI has a better Operating Margin (11.84%) than 82.22% of its industry peers.
In the last couple of years the Operating Margin of LEVI has remained more or less at the same level.
LEVI has a better Gross Margin (61.86%) than 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
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
LEVI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LEVI has been reduced compared to a year ago.
2.2 Solvency
LEVI has an Altman-Z score of 2.99. This indicates that LEVI is financially healthy and has little risk of bankruptcy at the moment.
LEVI's Altman-Z score of 2.99 is fine compared to the rest of the industry. LEVI outperforms 62.22% 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.
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.
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 | 2.99 |
ROIC/WACC1.15
WACC11.05%
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: 71.11% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that LEVI may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, LEVI is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
| 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.
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
LEVI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.54% yearly.
Based on estimates for the next years, LEVI will show a small growth in Revenue. The Revenue will grow by 3.36% on average per year.
EPS Next Y8.1%
EPS Next 2Y9.64%
EPS Next 3Y10.54%
EPS Next 5YN/A
Revenue Next Year-0.25%
Revenue Next 2Y2.51%
Revenue Next 3Y3.36%
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
LEVI is valuated correctly with a Price/Earnings ratio of 14.66.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. LEVI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.05, LEVI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 68.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. LEVI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEVI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 8.86 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y9.64%
EPS Next 3Y10.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, LEVI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.52, LEVI pays a better dividend. On top of this LEVI pays more dividend than 82.22% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, LEVI pays a bit more dividend than the S&P500 average.
| 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.
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
34.78% of the earnings are spent on dividend by LEVI. This is a low number and sustainable payout ratio.
LEVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.78%
EPS Next 2Y9.64%
EPS Next 3Y10.54%
21.11
-0.07 (-0.33%)
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-4.93%
Market Cap8.25B
Revenue(TTM)6.36B
Net Income(TTM)602.70M
Analysts81.9
Price Target28.21 (33.63%)
Short Float %8.93%
Short Ratio3.03
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)1.88%
PT rev (3m)16.12%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-4.25%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 14.05 | ||
| P/S | 1.3 | ||
| P/FCF | 25.46 | ||
| P/OCF | 14.73 | ||
| P/B | 3.81 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)1.44
EY6.82%
EPS(NY)1.5
Fwd EY7.12%
FCF(TTM)0.83
FCFY3.93%
OCF(TTM)1.43
OCFY6.79%
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 | 2.99 |
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 Y8.1%
EPS Next 2Y9.64%
EPS Next 3Y10.54%
EPS Next 5YN/A
Revenue 1Y (TTM)5.9%
Revenue growth 3Y3.31%
Revenue growth 5Y1.98%
Sales Q2Q%1.75%
Revenue Next Year-0.25%
Revenue Next 2Y2.51%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y34.88%
EBIT growth 3Y-2.44%
EBIT growth 5Y2.78%
EBIT Next Year58.6%
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 14.66 and the Price/Book (PB) ratio is 3.81.
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%.