LEVI STRAUSS & CO- CLASS A (LEVI) Stock Fundamental Analysis
NYSE:LEVI - US52736R1023 - Common Stock
21.7 USD
-0.3 (-1.36%)
21.7 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LEVI. LEVI was compared to 49 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 decent growth rate and is not valued too expensively.
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.
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
LEVI's Return On Assets of 6.20% is fine compared to the rest of the industry. LEVI outperforms 73.47% of its industry peers.
The Return On Equity of LEVI (19.39%) is better than 75.51% of its industry peers.
The Return On Invested Capital of LEVI (12.92%) is better than 75.51% 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 12.18%.
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 has a better Profit Margin (6.40%) than 77.55% of its industry peers.
In the last couple of years the Profit Margin of LEVI has declined.
The Operating Margin of LEVI (11.78%) is better than 81.63% 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 (61.48%) than 83.67% 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
LEVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 3.07. This indicates that LEVI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.07, LEVI perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
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 69.39% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that LEVI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.50, LEVI perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.29
WACC10.02%
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 75.51% of its industry peers.
A Quick Ratio of 0.85 indicates that LEVI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, LEVI is doing worse than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
LEVI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.44%, which is quite impressive.
The earnings per share for LEVI have been decreasing by -11.72% on average. This is quite bad
Looking at the last year, LEVI shows a small growth in Revenue. The Revenue has grown by 4.28% in the last year.
LEVI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.98% yearly.
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 9.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.69% 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-1.3%
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.
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
LEVI is valuated correctly with a Price/Earnings ratio of 15.17.
Based on the Price/Earnings ratio, LEVI is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.07, LEVI is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.67 indicates a correct valuation of LEVI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 63.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.59. LEVI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
LEVI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LEVI is valued a bit cheaper than 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.47 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LEVI may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, 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 3.12. LEVI pays more dividend than 81.63% of the companies in the same industry.
LEVI's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 50.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LEVI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.75%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
21.7
-0.3 (-1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.46%
Inst Owner Change3.09%
Ins Owners2.45%
Ins Owner Change-0.41%
Market Cap8.59B
Analysts78.95
Price Target24.29 (11.94%)
Short Float %11.69%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)4.77%
PT rev (3m)19.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)5.91%
EPS NY rev (3m)6.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 14.67 | ||
| P/S | 1.36 | ||
| P/FCF | 23.47 | ||
| P/OCF | 14.61 | ||
| P/B | 4.11 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)1.43
EY6.59%
EPS(NY)1.48
Fwd EY6.82%
FCF(TTM)0.92
FCFY4.26%
OCF(TTM)1.49
OCFY6.84%
SpS16
BVpS5.28
TBVpS4.08
PEG (NY)2.31
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 | 3.07 |
F-Score8
WACC10.02%
ROIC/WACC1.29
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 Y6.58%
EPS Next 2Y8.8%
EPS Next 3Y9.41%
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 Year56.42%
EBIT Next 3Y21.52%
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%