Levi Strauss & Co (LEVI) AI Stock Analysis

• Market Cap: $7.14B
• Dividend Yield: 2.79%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.97
• Revenue Growth: 4.63%
• EPS Growth: 187.50%
• Country: US
• Employees: 18,700
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.38
• Shares Outstanding: 104,585,526
• 10 Day Avg. Volume: 2,419,751
• 30 Day Avg. Volume: 2,112,960
• PEG Ratio: 3.10
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -163.72
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: 3.22
• 1Y Price Target: $19.40
• Price Target Upside: 7.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $19.50 ▲(7.91%Upside)

Levi Strauss & Co's strong earnings performance and strategic initiatives, including the Dockers sale, are major positives. Financial stability and technical indicators support a solid outlook, though valuation suggests moderate growth prospects. Challenges such as tariff impacts and wholesale flatness warrant caution.

Positive Factors

Brand Focus

The sale of Dockers is seen as a positive move as it allows management to focus on its key Levi’s brand, which has been performing well.

Earnings Confidence

Increasing the price objective to $21 reflects improving confidence in Levi's earnings trajectory.

Tariff Navigation

Levi is well positioned to navigate tariffs due to high international exposure, minimal China to US sourcing, and a diversified supply chain.

Negative Factors

Business Concerns

There is a lack of confidence in the long-term prospects of the Beyond Yoga business.

Operational Struggles

In recent years, the Dockers brand has struggled operationally as khaki's have widely under-performed, becoming a drag on overall profitability.

Tariff Impact

A scenario where the average tariff increases to 20% could result in a significant impact on earnings.

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 apparel products under various brand names, with Levi's being the most prominent. The company operates a multi-channel sales strategy, which includes direct-to-consumer sales through its branded retail stores and e-commerce platforms, as well as wholesale distribution through department stores, specialty retailers, and mass merchants. The direct-to-consumer channel allows the company to capture higher margins, while the wholesale channel provides broader market reach. Additionally, Levi Strauss & Co. engages in collaborations and partnerships with other brands and designers to create limited-edition collections, further driving brand visibility and sales. Key factors contributing to its earnings include brand strength, product innovation, effective marketing strategies, and global market penetration.

Levi Strauss & Co Financial Statement Overview

Summary

Levi Strauss & Co demonstrates solid financial health with stable margins and effective cash management, despite inconsistent revenue growth and negative recent free cash flow growth rates.

Income Statement

Levi Strauss & Co shows strong gross profit margins consistent with industry standards, though net profit margins are modest. Revenue growth has been fluctuating, with a slight decline recently in TTM data. The EBIT and EBITDA margins are stable, indicating efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is manageable, reflecting a balanced use of leverage. Return on equity is moderate, suggesting decent profitability for shareholders. The equity ratio is stable, indicating a solid capital structure.

Cash Flow

Operating cash flow is robust relative to net income, suggesting strong cash generation capabilities. However, recent free cash flow growth rates have been negative, signaling caution. The company's ability to convert earnings into cash remains a key strength.

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	3.86B	3.82B	3.52B	3.55B	3.35B	2.35B
EBITDA	649.90M	454.00M	476.40M	834.20M	796.31M	34.20M
Net Income	356.30M	210.60M	249.60M	569.10M	553.54M	-127.14M
Balance Sheet
Total Assets	6.20B	6.38B	6.05B	6.04B	5.90B	5.64B
Cash, Cash Equivalents and Short-Term Investments	574.40M	690.00M	398.80M	500.20M	901.82M	1.59B
Total Debt	2.16B	2.21B	2.18B	2.08B	2.24B	2.66B
Total Liabilities	4.16B	4.41B	4.01B	4.13B	4.23B	4.34B
Stockholders Equity	2.03B	1.97B	2.05B	1.90B	1.67B	1.30B
Cash Flow
Free Cash Flow	442.40M	670.90M	120.00M	-39.00M	570.32M	339.20M
Operating Cash Flow	664.90M	898.40M	435.50M	228.10M	737.26M	469.59M
Investing Cash Flow	-280.50M	-281.10M	-240.70M	-235.70M	-571.81M	-188.56M
Financing Cash Flow	-322.30M	-319.30M	-214.10M	-365.40M	-840.89M	286.00M

Levi Strauss & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 18.07 is above the 20-day moving average (MA) of 17.51, above the 50-day MA of 16.94, and above the 200-day MA of 17.26, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 84.03 is Negative, 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	74 Outperform	$7.14B	20.94	18.03%	2.79%	4.63%	187.50%
PVH	72 Outperform	$3.05B	9.02	8.31%	0.24%	-3.63%	-37.24%
KTB	71 Outperform	$3.53B	15.90	56.32%	3.20%	1.19%	3.19%
COLM	63 Neutral	$3.30B	15.56	12.34%	1.97%	-1.69%	-4.01%
Sector *	56 Neutral	HK$24.19B	4.02	-1.57%	11.14%	0.06%	-64.76%
HBI	50 Neutral	$1.59B	―	-23.24%	―	-33.72%	-892.32%
VFC	47 Neutral	$4.46B	―	-2.39%	3.08%	-7.52%	94.28%

Levi Strauss & Co Corporate Events

Levi Strauss Sells Dockers Business to Authentic Brands

On May 18, 2025, Levi Strauss & Co. announced an agreement to sell its Dockers business to Authentic Brands Group for an initial value of $311 million, potentially reaching $391 million based on future performance. This strategic move aligns with Levi’s focus on its direct-to-consumer approach and expanding its denim lifestyle brand, while returning $100 million from the proceeds to shareholders through share repurchases.

The most recent analyst rating on (LEVI) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Levi Strauss & Co stock, see the LEVI Stock Forecast page.

Levi Strauss Announces Leadership Transition in Finance

On April 30, 2025, Levi Strauss & Co. announced that Lisa Stirling, the Global Controller and Principal Accounting Officer, will transition to a new role as Vice President, U.S. and Canada Finance to further her career development. The company has initiated a search for her successor, and Stirling will maintain her current role until a replacement is found, ensuring a smooth transition. Her move is not due to any disagreements with the company’s accounting practices or policies.