Levi Strauss & Co. (LEVI): What Does Valuation Ratios Tell Us?

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Levi Strauss & Co. (NYSE:LEVI) saw a downside of -0.59% to close Tuesday at $16.72 after subtracting -$0.1 on the day. The 5-day average trading volume is 2,518,260 shares of the company’s common stock. It has gained $17.04 in the past week and touched a new high 3 times within the past 5 days. An average of 1,721,070 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,822,442.

LEVI’s 1-month performance is 9.14% or $1.24 on its low of $15.15 reached on 12/28/22. The company’s shares have touched a 52-week low of $13.57 and high of $24.22, with the stock’s rally to the 52-week high happening on 01/10/23. YTD, LEVI has achieved 7.73% or $1.20 and has reached a new high 6 times. However, the current price is down -30.97% from the 52-week high price.

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Insider Transactions

LEVI stock investors last saw insider trading activity on Dec 30.JAFFE SETH (EVP & General Counsel) most recently sold 11,442 shares at $15.47 per share on Dec 30. This transaction cost the insider $177,008. EVP & General Counsel, JAFFE SETH, sold 11,862 shares at a price of $16.17 on Nov 30. Then, on Nov 25, EVP & Chief Commercial Officer Ellison Seth M. sold 94 shares at a price of $15.58 per share. This transaction amounted to $1,465.

Valuation Metrics

LEVI stock has a beta of 1.14. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.02 while the price-to-book (PB) in the most recent quarter is 3.63, with the price to cash flow ratio at 187.74.

Levi Strauss & Co.’s quick ratio for the period ended August 30 was 0.80, with the current ratio over the same period at 1.50. As well, the company’s long term debt to equity for the quarter ending August 30 was 0.53, while the total debt to equity was 0.53.. In terms of profitability, the gross margin trailing 12 months is 58.00%. The firm’s gross profit as reported stood at $3.35 billion against revenue of $5.76 billion.

Earnings Surprise

For the quarterly period ending August 30 this year, Levi Strauss & Co.’s cash and short-term investments amounted to $100.52 million against total debt of $2.1 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -11.78% to $172.96 million, while revenue of $49.74 million was 71.24% off the previous quarter. Analysts expected LEVI to announce $0.37 per share in earnings in its latest quarter, but it posted $0.4, representing a 8.10% surprise. EBITDA for the quarter stood at more than $239.32 million. LEVI stock balance sheet for the quarter ending August 30 shows that total liabilities totaled 4.07 billion, with total debt at $2.1 billion. Shareholders hold equity totaling $394.39 million.

Let’s look briefly at Levi Strauss & Co. (LEVI) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 58.58% to suggest the stock is trending Neutral, with historical volatility in this time period at 26.61%.

The stock’s 5-day moving average is $16.41, reflecting a +2.70% or $0.44 change from its current price. LEVI is currently trading +8.36% above its 20-day SMA, -4.24% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +15.23% and SMA200 by-13.86%.

Stochastic %K and %D was 71.72% and 59.75% and the average true range (ATR) pointed at 0.54. The RSI (14) points at 56.76%, while the 14-day stochastic is at 73.83% with the period’s ATR at 0.54. The stock’s 9-day MACD Oscillator is pointing at 0.15 and 0.09 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Levi Strauss & Co. (NYSE: LEVI), JP Morgan downgraded it to a Neutral rating. They previously had an Overweight rating on the stock. Analysts offering their rating for LEVI stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate LEVI as a “sell,”, while 6 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 7 have offered a “buy” rating.

What is LEVI’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $16.00 and a high of $27.00, with their median price target at $18.00. Looking at these predictions, the average price target given by analysts is for Levi Strauss & Co. (LEVI) stock is $19.32.

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