Levi Strauss & Co

Consumer Discretionary
Apparel
www.levistrauss.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.08B
PE 46
Debt $1.03B
Cash $577.10M
EV $7.53B
FCF $641.70M

Earnings

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Sales & Net Margins

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Earnings	$154.90M
EBIT	$203.00M
ROE	8%
ROA	3%
FCF	$641.70M
Equity	$1.87B
Growth Stability	-40%
PE	45.68
PEG	11.95
PB	3.78
P/FCF	11.03
P/S	1.15
Price/Cash	0.08
Debt/Equity	0.55
Debt/FCF	1.6
Net Margins	1%
Gross Margins	59%
Op. Margins	3%
Earnings CAGR	1%
Sales Growth YoY	0%
Sales Growth QoQ	5%
Sales CAGR	4%
FCF CAGR	6%
Equity CAGR	29%
Earnings Stability	0
Earnings Growth YoY	116%
Earnings Growth QoQ	16%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	6%
FCF CAGR 5Y	7%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	2%
Equity CAGR 3Y	6%
Market Cap	$7.08B
Revenue	$6.16B
Dividend Yield	3%
Payout Ratio	126%
Assets	$6.25B
Total Debt	$1.03B
Cash	$577.10M
Shares Outstanding	398.19M
EV	7.53B
Earnings Score	6%
Moat Score	54%
Safety Score	63%
Final Score	41%
Working Capital	799.4M
Current Ratio	1.41
Gross Profit	$3.64B
Shares Growth 3y	-0%
Equity Growth QoQ	-4%
Equity Growth YoY	-4%

Assets & ROA

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Stockholders Equity & ROE

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Levi Strauss & Co is involved in designing, marketing, and selling products that include jeans, casual and dresses pants, tops, shorts, skirts, jackets, footwear, and related accessories directly or through third parties and licensees for men, women, and children under Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. The company manages its business according to three regional segments: the Americas, which is the key revenue driver; Europe; and Asia.

SEC Filings

Direct access to Levi Strauss & Co (LEVI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 25
- 10-Q May 26
- 10-Q Feb 25
2023
- 10-K Nov 26
- 10-Q Aug 27
- 10-Q May 28
- 10-Q Feb 26
2022
- 10-K Nov 27
- 10-Q Aug 28
- 10-Q May 29
- 10-Q Feb 27

Sector Comparison

How does Levi Strauss & Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Levi Strauss & Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 0%

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Levi Strauss & Co Discounted Cash Flow

Fully customizable DCF calculator online for Levi Strauss & Co.

Years

Calculation mode

= $9.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$642M	$678M	$717M	$758M	$801M	$846M	$895M	$946M	$999M	$1.1B	$1.1B	$11B
DCF		$617M	$592M	$569M	$547M	$526M	$505M	$485M	$466M	$448M	$430M	$4.3B
Value	$9.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	TTM
Net Margins	5%	6%	6%	5%	7%	-3%	10%	9%	4%	1%
ROA	-	16%	14%	16%	13%	-2%	12%	11%	6%	3%
ROE	-	57%	40%	42%	25%	-10%	33%	30%	12%	8%

Bad Net Margins (0.62%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	TTM
Debt over FCF	-	5.13	2.65	4.03	4.28	4.61	1.8	-25.94	8.52	1.6
Debt over Equity	3.47	2.04	1.53	1.58	0.65	1.2	0.62	0.53	0.5	0.55
Growth Stability	-	-	-	100%	100%	-40%	100%	100%	75%	-40%

Good Debt/FCF ratio (1.6)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.55)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-40%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	CAGR 5Y
Revenue YoY growth	-	1%	8%	14%	3%	-23%	29%	7%	0%	6%
Earnings YoY growth	-	39%	-3%	1%	39%	-132%	-535%	3%	-56%	4%
Equity YoY growth	-	54%	37%	-5%	135%	-17%	28%	14%	7%	10%
FCF YoY growth	-	75%	100%	-36%	-9%	43%	68%	-107%	-408%	7%