Levi Strauss & Co (LEVI) AI Stock Analysis

• Market Cap: $8.74B
• Dividend Yield: 2.4%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.97
• Revenue Growth: 2.90%
• EPS Growth: 182.72%
• Country: US
• Employees: 18,700
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.22
• Shares Outstanding: 107,206,840
• 10 Day Avg. Volume: 2,008,274
• 30 Day Avg. Volume: 2,059,283
• PEG Ratio: -2.17
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 10.79
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 11.27
• 1Y Price Target: $23.45
• Price Target Upside: 6.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $24.00 ▲(8.70% Upside)

Levi Strauss & Co's strong earnings performance and positive technical indicators are the primary drivers of the high stock score. The company's strategic focus on direct-to-consumer growth and successful international expansion further enhance its outlook. However, valuation concerns and revenue growth challenges slightly temper the overall score.

Positive Factors

Direct-to-Consumer Growth

The focus on direct-to-consumer sales enhances control over brand presentation and customer engagement, driving sustainable revenue growth.

Gross Margin Improvement

Improved gross margins indicate effective cost management and pricing strategies, contributing to long-term profitability and financial health.

Leadership Strengthening

The addition of an experienced supply chain leader can enhance operational efficiency and sustainability, supporting long-term strategic goals.

Negative Factors

Challenges in Asia

Flat revenues in Asia suggest difficulties in market penetration and profitability, potentially limiting growth in this key region.

Tariff Uncertainty

Tariff uncertainties can impact cost structures and margins, posing risks to profitability and pricing strategies in the long term.

Declining Free Cash Flow

A significant drop in free cash flow limits financial flexibility and may constrain future investments or debt reduction efforts.

Levi Strauss & Co Business Overview & Revenue Model

Company Description

Levi Strauss & Co. operates as an apparel company. The company designs, markets, and sells jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women, and children in the Americas, Europe, and Asia. It also sells its products under the Levi's, Dockers, Signature by Levi Strauss & Co., and Denizen brands. In addition, the company licenses Levi's and Dockers trademarks for various product categories, including footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery. Further, 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. The company also operates approximately 3,100 brand-dedicated stores and shop-in-shops. The company was founded in 1853 and is headquartered in San Francisco, California.

How the Company Makes Money

Levi Strauss & Co. generates revenue primarily through the sale of its branded apparel and accessories. The company operates a direct-to-consumer model via its own retail stores and e-commerce platforms, which have increasingly become significant revenue streams. Additionally, Levi's products are sold through wholesale channels, partnering with a variety of retailers around the world. Key revenue streams include core products like denim jeans, which account for a substantial portion of sales, as well as seasonal collections and collaborations that attract diverse consumer interest. The company also benefits from strategic partnerships and licensing agreements that expand its reach and product offerings, contributing to its overall earnings.

Levi Strauss & Co Financial Statement Overview

Summary

Levi Strauss & Co exhibits strong profitability with a robust gross profit margin and improved EBIT margin. The company shows effective equity utilization with a strong return on equity. However, challenges in revenue growth and declining free cash flow due to increased capital expenditures are concerns.

Income Statement

Levi Strauss & Co shows a robust financial performance with a healthy gross profit margin of 61.5% and a significant improvement in EBIT margin to 8.6% in TTM. Net profit margin also improved to 6.4% from 3.3% in the previous year. Revenue growth rate is stable with a slight decline of 0.4% compared to the previous year, indicating some challenges in revenue expansion.

Balance Sheet

The company maintains a solid debt-to-equity ratio of 1.07, indicating a balanced approach to leveraging. Return on equity is strong at 19.4%, reflecting effective utilization of shareholders' investments. Equity ratio stands at 32.0%, suggesting a moderate level of financial stability.

Cash Flow

Operating cash flow to net income ratio is 1.45, indicating good cash generation relative to net income. However, free cash flow decreased by 45.5% compared to the previous year, reflecting increased capital expenditures which could impact future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.33B	6.36B	6.18B	6.17B	5.76B	4.45B
Gross Profit	3.89B	3.82B	3.52B	3.55B	3.35B	2.35B
EBITDA	747.10M	454.00M	476.40M	834.20M	796.30M	34.20M
Net Income	405.30M	210.60M	249.60M	569.10M	553.54M	-127.14M
Balance Sheet
Total Assets	6.53B	6.38B	6.05B	6.04B	5.90B	5.64B
Cash, Cash Equivalents and Short-Term Investments	736.70M	690.00M	398.80M	500.20M	901.82M	1.59B
Total Debt	2.25B	2.21B	2.18B	2.09B	2.24B	2.66B
Total Liabilities	4.44B	4.41B	4.01B	4.13B	4.23B	4.34B
Stockholders Equity	2.09B	1.97B	2.05B	1.90B	1.67B	1.30B
Cash Flow
Free Cash Flow	365.80M	670.90M	121.90M	-39.00M	570.40M	339.20M
Operating Cash Flow	587.60M	898.40M	435.50M	228.10M	737.30M	469.59M
Investing Cash Flow	-269.40M	-281.10M	-240.70M	-235.70M	-571.80M	-188.56M
Financing Cash Flow	-308.80M	-319.30M	-214.10M	-365.40M	-840.90M	286.00M

Levi Strauss & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEVI, the sentiment is Positive. The current price of 22.08 is above the 20-day moving average (MA) of 21.72, above the 50-day MA of 20.85, and above the 200-day MA of 17.83, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 24.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEVI.

Levi Strauss & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEVI	78 Outperform	$8.74B	21.45	20.93%	2.40%	2.90%	182.72%
PVH	73 Outperform	$3.95B	9.15	9.32%	0.18%	-1.14%	-29.30%
KTB	71 Outperform	$4.29B	17.22	58.07%	2.47%	3.47%	5.86%
COLM	67 Neutral	$3.05B	14.01	12.93%	2.18%	0.81%	4.86%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
VFC	55 Neutral	$6.05B	68.92	7.83%	2.33%	-7.41%	―
HBI	55 Neutral	$2.25B	14.32	154.00%	―	-27.88%	―

Levi Strauss & Co Corporate Events

Levi Strauss Appoints New Global Controller

On August 7, 2025, Levi Strauss & Co. announced the appointment of Timothy Joseph ‘Joe’ Davis as the Senior Vice President, Global Controller, effective August 11, 2025. Davis, with a background in accounting and previous roles at Crocs, Inc., Agero, Inc., and Thermo Fisher Scientific Inc., will receive a comprehensive compensation package including a base salary, bonuses, and equity grants. This appointment follows the transition of Lisa Stirling, the former Global Controller, to a new role as Vice President, U.S. and Canada Finance.

Levi Strauss Issues €475 Million in Senior Notes

On July 29, 2025, Levi Strauss & Co. issued €475 million in 4.000% Senior Notes due 2030, which are senior obligations and rank equally with the company’s existing and future senior unsecured debt. The proceeds from this issuance were used to redeem the company’s outstanding 3.375% Senior Notes due 2027, enhancing its debt structure and potentially impacting its financial flexibility and market positioning.

Levi Strauss Announces €475M Senior Notes Placement

On July 14, 2025, Levi Strauss & Co. announced a private placement of euro-denominated senior notes due 2030, aiming to raise up to €475 million. The proceeds are intended to redeem the company’s 3.375% senior notes due 2027 and cover related fees, which could strengthen its financial position by managing debt obligations.