LEVI STRAUSS & CO- CLASS A (LEVI)
US52736R1023 - Common Stock
Overall LEVI gets a fundamental rating of 5 out of 10. We evaluated LEVI against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. LEVI has only an average score on both its financial health and profitability. LEVI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LEVI was profitable.
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
The Return On Assets of LEVI (2.09%) is comparable to the rest of the industry.
LEVI has a Return On Equity (6.29%) which is comparable to the rest of the industry.
LEVI has a Return On Invested Capital of 9.07%. This is in the better half of the industry: LEVI outperforms 72.00% of its industry peers.
LEVI had an Average Return On Invested Capital over the past 3 years of 13.88%. This is above the industry average of 10.04%.
The last Return On Invested Capital (9.07%) for LEVI is well below the 3 year average (13.88%), which needs to be investigated, but indicates that LEVI had better years and this may not be a problem.
| 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.
LEVI has a Operating Margin (6.92%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LEVI has declined.
Looking at the Gross Margin, with a value of 57.54%, LEVI is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
In the last couple of years the Gross Margin of LEVI has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LEVI is creating some value.
LEVI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LEVI has more shares outstanding
Compared to 1 year ago, LEVI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.05 indicates that LEVI is not in any danger for bankruptcy at the moment.
LEVI's Altman-Z score of 3.05 is fine compared to the rest of the industry. LEVI outperforms 62.00% of its industry peers.
LEVI has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of 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.
LEVI's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. LEVI outperforms 42.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for LEVI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.95
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.43 indicates that LEVI should not have too much problems paying its short term obligations.
The Current ratio of LEVI (1.43) is worse than 74.00% of its industry peers.
A Quick Ratio of 0.78 indicates that LEVI may have some problems paying its short term obligations.
LEVI has a Quick ratio of 0.78. This is in the lower half of the industry: LEVI underperforms 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%.
Measured over the past years, LEVI shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.95% on average per year.
Looking at the last year, LEVI shows a decrease in Revenue. The Revenue has decreased by -3.48% in the last 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
Based on estimates for the next years, LEVI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.13% on average per year.
Based on estimates for the next years, LEVI will show a small growth in Revenue. The Revenue will grow by 6.80% on average per year.
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
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.
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
A Price/Earnings ratio of 20.72 indicates a rather expensive valuation of LEVI.
The rest of the industry has a similar Price/Earnings ratio as LEVI.
When comparing the Price/Earnings ratio of LEVI to the average of the S&P500 Index (25.20), we can say LEVI is valued inline with the index average.
LEVI is valuated correctly with a Price/Forward Earnings ratio of 14.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LEVI indicates a somewhat cheap valuation: LEVI is cheaper than 64.00% of the companies listed in the same industry.
LEVI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 14.18 |
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.
LEVI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LEVI's earnings are expected to grow with 17.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y16.4%
EPS Next 3Y17.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, LEVI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.97, LEVI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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
153.50% of the earnings are spent on dividend by LEVI. This is not a sustainable payout ratio.
DP153.5%
EPS Next 2Y16.4%
EPS Next 3Y17.11%
LEVI STRAUSS & CO- CLASS A
NYSE:LEVI (4/26/2024, 4:06:08 PM)
After market: 21.13 0 (0%)21.13
+0.04 (+0.19%)
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 Cap8.41B
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)
Max Revenue beat(4)
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 | 20.72 | ||
| Fwd PE | 14.18 | ||
| 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)1.18
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