Levi Strauss & Co

LEVI

Apparel & Other Finishd Prods of Fabrics & Similar Matl

Mkt Cap

$9.024B

PE

72.60

Debt

$1.01B

Cash

$516.7M

EV

$9.518B

FCF

$606.1M

Market Cap

$9.024B

P/E Ratio

72.60

Debt

$1.01B

Cash

$516.7M

EV

$9.518B

FCF

$606.1M

Charts data: {"Earnings":[{"time":"2014-11-29","value":104309000},{"time":"2015-11-28","value":209436000},{"time":"2016-11-26","value":291052000},{"time":"2017-11-25","value":281403000},{"time":"2018-11-24","value":283142000},{"time":"2019-11-23","value":394612000},{"time":"2020-11-28","value":-127141000},{"time":"2021-11-27","value":553541000},{"time":"2022-11-26","value":569100000},{"time":"2023-11-25","value":249600000}],"Sales":[{"time":"2014-11-29","value":4753992000},{"time":"2015-11-28","value":4494493000},{"time":"2016-11-26","value":4552739000},{"time":"2017-11-25","value":4904030000},{"time":"2018-11-24","value":5575440000},{"time":"2019-11-23","value":5763087000},{"time":"2020-11-28","value":4452609000},{"time":"2021-11-27","value":5763936000},{"time":"2022-11-26","value":6168600000},{"time":"2023-11-25","value":6179000000}],"Net Margins":[{"time":"2014-11-29","value":0.021941349501639885},{"time":"2015-11-28","value":0.04659835937001126},{"time":"2016-11-26","value":0.06392898868131909},{"time":"2017-11-25","value":0.05738198991441733},{"time":"2018-11-24","value":0.05078379464221658},{"time":"2019-11-23","value":0.06847233088794252},{"time":"2020-11-28","value":-0.028554270091984274},{"time":"2021-11-27","value":0.09603524397217457},{"time":"2022-11-26","value":0.09225756249392082},{"time":"2023-11-25","value":0.04039488590386794}],"Assets":[{"time":"2014-11-29","value":2924073000},{"time":"2015-11-28","value":2884395000},{"time":"2016-11-26","value":2987096000},{"time":"2017-11-25","value":3354692000},{"time":"2018-11-24","value":3542660000},{"time":"2019-11-23","value":4232418000},{"time":"2020-11-28","value":5641241000},{"time":"2021-11-27","value":5900069000},{"time":"2022-11-26","value":6037800000},{"time":"2023-11-25","value":6053600000}],"Stockholders Equity":[{"time":"2014-11-29","value":154455000},{"time":"2015-11-28","value":331863000},{"time":"2016-11-26","value":511775000},{"time":"2017-11-25","value":702388000},{"time":"2018-11-24","value":667459000},{"time":"2019-11-23","value":1571557000},{"time":"2020-11-28","value":1299475000},{"time":"2021-11-27","value":1665661000},{"time":"2022-11-26","value":1903700000},{"time":"2023-11-25","value":2046400000}],"ROE":[{"time":"2014-11-29","value":0.675335858340617},{"time":"2015-11-28","value":0.6310917456902396},{"time":"2016-11-26","value":0.5687108592643252},{"time":"2017-11-25","value":0.40063753936570673},{"time":"2018-11-24","value":0.42420882780815},{"time":"2019-11-23","value":0.2510962058646298},{"time":"2020-11-28","value":-0.0978402816522057},{"time":"2021-11-27","value":0.33232512498041317},{"time":"2022-11-26","value":0.29894416136996377},{"time":"2023-11-25","value":0.12197028928850664}],"ROA":[{"time":"2014-11-29","value":0.10733350364371888},{"time":"2015-11-28","value":0.14944104396242539},{"time":"2016-11-26","value":0.16083513887735781},{"time":"2017-11-25","value":0.1392583879533501},{"time":"2018-11-24","value":0.15675170634494984},{"time":"2019-11-23","value":0.1338891858034816},{"time":"2020-11-28","value":-0.01508870122726542},{"time":"2021-11-27","value":0.1163055889685358},{"time":"2022-11-26","value":0.10758885686839577},{"time":"2023-11-25","value":0.05836196643319678}]}

Levi Strauss & Co. engages in the design, marketing, and sale of apparels and related accessories for men, women, and children in the Americas, Europe, and Asia. It offers jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jumpsuits, shirts, sweaters, jackets, footwear, and related products under the Levi's, Dockers, Beyond Yoga, Signature by Levi Strauss & Co., and Denizen brands. The company also licenses Levi's and Dockers trademarks for various product categories, including footwear, belts, wallets, bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery. In addition, it 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. Further, the company operates approximately 3,200 brand-dedicated stores and shop-in-shops. The company was founded in 1853 and is headquartered in San Francisco, California.

Sector

10-Q
8/27/23
10-Q
5/28/23
10-Q
2/26/23
10-K
11/27/22
10-Q
8/28/22
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5/29/22
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2/27/22
10-K
11/28/21
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8/29/21
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5/30/21
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11/29/20
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5/24/20
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2/23/20
10-K
11/24/19
10-Q
8/25/19
10-Q
5/26/19
10-Q
2/24/19
10-K
11/25/18
10-Q
8/26/18
10-Q
5/27/18
10-Q
2/25/18

DCF

Discounted Cash Flow Valuation of Levi Strauss & Co

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$606.1M	$674.5M	$746M	$819.8M	$895.2M	$971.3M	$1.047B	$1.121B	$1.193B	$1.261B	$1.324B	$13.24B
DCF		$586.6M	$564.1M	$539.1M	$511.8M	$482.9M	$452.7M	$421.5M	$390M	$358.5M	$327.3M	$3.273B
Value	$7.907B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 6.6%

Earnings Stability -3%

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.

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

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	11-2015	11-2016	11-2017	11-2018	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Net Margin	4.7%	6.4%	5.7%	5.1%	6.8%	-2.9%	9.6%	9.2%	4%	2.1%
ROA	15%	16%	14%	16%	13%	-1.5%	12%	11%	5.8%	3.3%
ROE	63%	57%	40%	42%	25%	-9.8%	33%	30%	12%	6.3%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.32%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.41%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.3%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.26%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +22.18%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.68%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	11-2015	11-2016	11-2017	11-2018	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Debt FCF	9.65	5.13	2.65	4.03	4.28	4.61	1.80	-25.94	8.52	1.67
Debt Equity	3.37	2.04	1.53	1.58	0.65	1.20	0.62	0.53	0.50	0.51
MIN
Graham Stability	-	-	100%	100%	100%	-40%	100%	100%	75%	-40%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.67.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -2.03.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.40.

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.

Earnings growth has not been increasing in the past years.

Years	11-2016	11-2018	11-2020	11-2022	Trend
Revenue	4.5%	2.1%	12%	0.17%	0.78%
Net Income	-2.2%	-2.5%	-	-56%	-13%
Stockholders Equity	22%	25%	16%	7.5%	-9.7%
FCF	-7.3%	-14%	-29%	-	4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.08%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.78%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -2.49%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -12.61%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +25.12%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -9.66%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -14.39%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +4.02%.