Levi Strauss & Co Class A Common Stock (LEVI)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $546 million in annual free cash flow (6.3% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 25.4% demonstrating efficient capital deployment
• Attractive 2.5% dividend yield providing steady income returns
• Established organization with 19,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($13) with negative 70% margin of safety—limited downside protection

AI Analysis

Levi Strauss & Co Class A Common Stock is a small-cap consumer cyclical company valued at $8.6 billion. The business generates $6.5 billion in annual revenue with a 2.7% net margin and $546 million in free cash flow. From a quality standpoint, Levi shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.1 in the grey zone. On valuation, the stock is reasonably priced at 16.5x earnings, with trades above its Graham Number with a negative 70% margin. Growth dynamics show revenue growing at 14.1% and profit growth of 30.2%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $546 million in annual free cash flow (6.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer