NYSE:LEVI

Stock Analysis Report

Executive Summary

Levi Strauss & Co. operates as an apparel company.


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Levi Strauss's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEVI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

LEVI

-0.2%

US Luxury

0.06%

US Market


1 Year Return

n/a

LEVI

12.0%

US Luxury

19.3%

US Market

Return vs Industry: Insufficient data to determine how LEVI performed against the US Luxury industry.

Return vs Market: Insufficient data to determine how LEVI performed against the US Market.


Shareholder returns

LEVIIndustryMarket
7 Day-1.1%-0.2%0.06%
30 Day0.6%-3.0%1.7%
90 Day17.7%6.8%9.0%
1 Yearn/a14.3%12.0%21.8%19.3%
3 Yearn/a67.4%59.8%49.5%39.9%
5 Yearn/a50.4%40.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is Levi Strauss's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Levi Strauss undervalued compared to its fair value and its price relative to the market?

28.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEVI ($20) is trading below our estimate of fair value ($28.13)

Significantly Below Fair Value: LEVI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LEVI is poor value based on its PE Ratio (19.7x) compared to the Luxury industry average (18.1x).

PE vs Market: LEVI is poor value based on its PE Ratio (19.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: LEVI is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: LEVI is overvalued based on its PB Ratio (5x) compared to the US Luxury industry average (1.2x).


Next Steps

Future Growth

How is Levi Strauss forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEVI's forecast earnings growth (13.1% per year) is above the savings rate (1.7%).

Earnings vs Market: LEVI's earnings (13.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: LEVI's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEVI's revenue (4.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LEVI's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEVI's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Levi Strauss performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEVI has high quality earnings.

Growing Profit Margin: LEVI's current net profit margins (6.8%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: LEVI's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: LEVI's earnings growth over the past year (39.3%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: LEVI earnings growth over the past year (39.3%) exceeded the Luxury industry 3.5%.


Return on Equity

High ROE: LEVI's Return on Equity (25.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Levi Strauss's financial position?


Financial Position Analysis

Short Term Liabilities: LEVI's short term assets ($2.9B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: LEVI's short term assets ($2.9B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: LEVI's debt to equity ratio (64.5%) is considered high.

Reducing Debt: LEVI's debt to equity ratio has reduced from 766.9% to 64.5% over the past 5 years.

Debt Coverage: LEVI's debt is well covered by operating cash flow (40.6%).

Interest Coverage: LEVI's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

Inventory Level: LEVI has a high level of physical assets or inventory.

Debt Coverage by Assets: LEVI's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is Levi Strauss's current dividend yield, its reliability and sustainability?

1.60%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: LEVI's dividend (1.6%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: LEVI's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether LEVI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if LEVI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), LEVI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEVI's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Chip Bergh (61yo)

8.4yrs

Tenure

US$12,195,083

Compensation

Mr. Charles Victor Bergh, also known as Chip, has been the Chief Executive Officer and President of Levi Strauss & Co. since September 1, 2011. Mr. Bergh served as Group President of Special Assignment at  ...


CEO Compensation Analysis

Compensation vs Market: Chip's total compensation ($USD12.20M) is above average for companies of similar size in the US market ($USD6.36M).

Compensation vs Earnings: Chip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Bergh
President8.4yrsUS$12.20m3.16% $248.9m
Harmit Singh
Executive VP & CFO7.1yrsUS$3.68m0.025% $2.0m
David Love
Executive VP and President of Levi Strauss Asia3.4yrsUS$3.04m0.069% $5.4m
Seth Ellison
Executive VP & President of Europe6.6yrsUS$3.97m0.020% $1.6m
Chris Clark
Senior VP & Chief Information Officer0yrsno datano data
Aida Orphan
Senior Director of Investor Relations & Risk Management0yrsno datano data
Seth Jaffe
Executive VP & General Counsel2.1yrsno data0.072% $5.6m
Kelly McGinnis
Chief Communications Officer & Senior VP of Corporate Affairs6.5yrsno datano data
Jennifer Sey
Global Chief Marketing Officer & Senior VP6.5yrsno datano data
Heidi Manes
Senior Vice President of Finance Americas6.1yrsUS$901.39kno data

6.5yrs

Average Tenure

56yo

Average Age

Experienced Management: LEVI's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Bergh
President8.4yrsUS$12.20m3.16% $248.9m
Spencer Fleischer
Independent Director6.6yrsUS$278.60k0.0050% $391.8k
Christopher McCormick
Independent Director3.8yrsUS$243.17k0.0050% $391.8k
Robert Eckert
Independent Director9.8yrsUS$292.79k0.023% $1.8m
Jennifer Ming
Independent Director5.4yrsUS$252.33kno data
Robert Haas
Chairman Emeritus0yrsUS$121.00k9.97% $786.2m
Patricia Pineda
Independent Director29.1yrsUS$263.66k0.015% $1.2m
Stephen Neal
Chairman of the Board8.4yrsUS$484.01k0.068% $5.4m
Troy Alstead
Independent Director7.8yrsUS$272.01k0.0069% $547.8k
Jill Beraud
Independent Director7yrsUS$245.44k0.020% $1.5m

7.8yrs

Average Tenure

64yo

Average Age

Experienced Board: LEVI's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LEVI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: LEVI only recently listed within the past 12 months, with total shares outstanding growing by 3.2% in the past year..


Top Shareholders

Company Information

Levi Strauss & Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Levi Strauss & Co.
  • Ticker: LEVI
  • Exchange: NYSE
  • Founded: 1853
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$7.882b
  • Shares outstanding: 394.12m
  • Website: https://www.levistrauss.com

Number of Employees


Location

  • Levi Strauss & Co.
  • 1155 Battery Street
  • San Francisco
  • California
  • 94111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEVINYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 2019
LV2BDB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2019
0A14LSE (London Stock Exchange)YesClass A Common StockGBEURMar 2019
LEVIWBAG (Wiener Boerse AG)YesClass A Common StockATEURMar 2019
LEVI *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMar 2019

Biography

Levi Strauss & Co. operates as an apparel company. It designs, markets, and sells jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories for men, women, and children in the Americas, Europe, and Asia. The company sells its products under the Levi's, Dockers, Signature by Levi Strauss & Co., and Denizen brands; and also licenses its Levi's and Dockers trademarks for various product categories, including footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery. The company sells its products through third-party retailers, such as department stores, specialty retailers, third-party e-commerce sites, and franchisees who operate brand-dedicated stores; and directly to consumers through various formats, including company-operated mainline and outlet stores, company-operated e-commerce sites, and select shop-in-shops located in department stores and other third-party retail locations. It operates approximately 3,000 retail stores and shop-in-shops. The company was founded in 1853 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 02:17
End of Day Share Price2020/02/20 00:00
Earnings2019/11/24
Annual Earnings2019/11/24


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.