Bedrijfsoverzicht
Levi Strauss & Co. is a major global entity dedicated to the design, marketing, and sale of apparel and related accessories for men, women, and children across the United States and international markets. The company's product portfolio includes jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jumpsuits, shirts, sweaters, jackets, footwear, and other items, positioning it firmly within the Consumer Cyclical sector and the Apparel Manufacturing industry. Operating in the apparel manufacturing industry implies that the firm is directly exposed to consumer discretionary spending patterns and global supply chain dynamics, which are critical factors for cyclical businesses. The company demonstrates significant scale with a market capitalization of $8.75B, annual revenue of $6.50B, and an employee base of 19000 individuals. These valuation and revenue figures indicate that Levi Strauss & Co. holds a substantial position in the global fashion landscape, serving as a dominant player capable of sustaining operations and generating cash flows across diverse geographic regions.
Financiële gezondheid
The financial performance of the company is defined by a TTM revenue of $6.50B, which generated a net income of $538.90M and an EBITDA of $944.90M. The gap between the $6.50B revenue and the $538.90M net income reveals a cost structure where approximately 90.6% of revenue is consumed by costs of goods sold, operating expenses, and taxes before reaching the bottom line. The company reports a free cash flow of $545.96M, which signifies robust financial flexibility allowing for potential capital expenditures, debt repayment, or share buybacks without relying solely on external financing. Profitability is analyzed through three key margins: a gross margin of 61.7% indicating strong pricing power or low direct production costs, an operating margin of 12.5% reflecting efficient management of overhead and administrative expenses, and a profit margin of 9.5% representing the final earnings available to shareholders. Regarding leverage, the company holds $812.00M in cash against $2.32B in total debt, resulting in a debt-to-equity ratio of 104.98, which suggests a leveraged balance sheet where debt obligations exceed equity capitalization. Liquidity is assessed via a current ratio of 1.58, indicating that the company possesses sufficient current assets to cover its short-term liabilities with a comfortable margin of safety. Management effectiveness is further highlighted by a Return on Equity of 25.4% and a Return on Assets of 7.2%, metrics that demonstrate the ability to generate substantial returns relative to the shareholders' investment and the total asset base utilized.
Waarderingsbeoordeling
Valuation metrics provide insight into market expectations, with a trailing P/E ratio of 16.73 compared to a forward P/E of 13.58. The difference between the trailing and forward P/E ratios implies that the market anticipates an expansion in earnings, as the price investors are willing to pay for future earnings is lower relative to current earnings levels. The price-to-book ratio stands at 3.90, indicating that the market values the company at nearly four times its net asset value, suggesting a premium over the underlying book equity often associated with strong brand intangibles. Alternative valuation metrics include a price-to-sales ratio of 1.35 and an EV/EBITDA of 10.85, which provide context by normalizing valuation against revenue and operating cash flow respectively, often offering a clearer picture for capital-intensive or high-growth segments. The stock has traded within a 52-week range defined by a high of $24.82 and a low of $13.83; without a specific current price, the precise percentage distance cannot be calculated, but the range establishes the volatility band within which the security has operated over the past year. The beta value of 1.34 indicates that the stock exhibits higher price volatility relative to the broader market, meaning it is expected to fluctuate more than 34% more than the general market index during periods of rising or falling equity prices.
Growth & Income
Growth dynamics are characterized by a revenue growth rate of 14.1% year-over-year and an earnings growth rate of 32.6% year-over-year. The fact that earnings are growing significantly faster than revenue implies that the company is benefiting from operational leverage, likely due to fixed cost absorption or favorable mix shifts toward higher-margin products. As a dividend payer, the company offers a dividend yield of 2.5% with a payout ratio of 40.4%, a level that suggests the dividend is highly sustainable given the earnings growth and the conservative portion of earnings retained for reinvestment. The sustainability of the dividend is further reinforced by the robust free cash flow generation, ensuring that the payout does not jeopardize the company's ability to fund growth initiatives. Overall, the company presents a profile combining moderate dividend income with accelerated earnings growth, offering investors exposure to a brand that is expanding profitability at a rate outpacing top-line revenue expansion.