Levi Strauss & Co. (LEVI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Levi Strauss & Co.

Ralph Lauren Corp.

Crocs, Inc.

Skechers U.S.A., Inc.

Columbia Sportswear Co.

Oxford Industries, Inc.

VF Corp.

PVH Corp.

Kontoor Brands, Inc.

Steven Madden Ltd.

Ermenegildo Zegna NV

Why is Levi Strauss & Co. ?

High Management Efficiency with a high ROCE of 25.74%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.75 times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 25.74%

The company has declared Positive results for the last 3 consecutive quarters

DEBT-EQUITY RATIO (HY) Lowest at 71.65 %
RAW MATERIAL COST(Y) Fallen by -1.1% (YoY)
DIVIDEND PER SHARE(HY) Highest at USD 10.56

With ROCE of 26.59%, it has a fair valuation with a 2.80 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 21.96%, its profits have risen by 44.5% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Levi Strauss & Co. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Levi Strauss & Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Levi Strauss & Co.

20.01%

-0.11

43.27%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.75%

EBIT Growth (5y)

21.48%

EBIT to Interest (avg)

13.14

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.90

Tax Ratio

15.18%

Dividend Payout Ratio

95.53%

Pledged Shares

Institutional Holding

98.27%

ROCE (avg)

25.74%

ROE (avg)

27.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.39

EV to EBIT

10.53

EV to EBITDA

8.26

EV to Capital Employed

2.80

EV to Sales

1.20

PEG Ratio

0.27

Dividend Yield

2.44%

ROCE (Latest)

26.59%

ROE (Latest)

29.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 71.65 %

RAW MATERIAL COST(Y)

Fallen by -1.1% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 10.56

-9What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 107.5 MM has Fallen at -35.04%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.98 times

NET SALES(Q)

At USD 1,447.1 MM has Fallen at -8.56%

INTEREST(Q)

Highest at USD 11.8 MM

NET PROFIT(Q)

Lowest at USD 83.48 MM

Here's what is working for Levi Strauss & Co.

Debt-Equity Ratio

Lowest at 71.65 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 10.56

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -1.1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Levi Strauss & Co.

Net Profit

At USD 83.48 MM has Fallen at -45.23%

over average net sales of the previous four periods of USD 152.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

At USD 107.5 MM has Fallen at -35.04%

over average net sales of the previous four periods of USD 165.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Sales

At USD 1,447.1 MM has Fallen at -8.56%

over average net sales of the previous four periods of USD 1,582.5 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 11.8 MM

in the last five periods and Increased by 8.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD 83.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 1.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio