One-glance verdict
Undervalued
$42.32 our estimate vs market $24.41
Wall Street consensus: $27.73 (-34.5% lower than our fair-value estimate)
42% below our estimate, below the bear case
Fundamentals snapshot
Levi Strauss & Co.
LEVI · NYQ · Consumer Cyclical · Apparel Manufacturing
Current price
$24.41
52-week range
$17.72 - $25.58
Market cap
$9.39B
Balance sheet
Watch
14.50x Strong cushion
Net debt $1.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.4% last year.
- Reward Returns 25.4% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 2.1% (peer median: 2.1%).
What this company does
Levi Strauss & Co.
Levi Strauss & Co. is a historic apparel company, world-famous for its Levi's brand jeans, which also sells other clothing and accessories. It makes money primarily in two ways: selling in bulk to other retailers like department stores, and selling directly to customers through its own stores and websites. Growing its direct sales is a key goal for the company, as this often leads to higher profit margins (the percentage of each sale that the company gets to keep as profit) because there is no middleman taking a cut.
How the company got here
Levi Strauss & Co. was founded in 1853 by Levi Strauss, a German immigrant who moved to San Francisco during the Gold Rush to open a dry goods business. In 1873, he and a tailor named Jacob Davis patented the idea of adding metal rivets to work pants to make them more durable, creating the world's first pair of blue jeans. Originally made for American workers like miners and cowboys, Levi's jeans became a symbol of youth rebellion and casual style after World War II, gaining worldwide popularity in the 1960s. The company went public for a second time in 2019, trading on the New York Stock Exchange under the ticker "LEVI".
What it actually does
Levi Strauss & Co. is a clothing company famous for its denim jeans. It designs and sells casual apparel, including jeans, pants, shorts, shirts, jackets, and accessories for men, women, and children. The company's products are sold globally in over 110 countries through a mix of chain retailers, department stores, its own websites, and about 3,200 of its own retail stores and shop-in-shops (a store within another, bigger store). While jeans are its most famous product, the company also makes and sells other clothing items and has expanded into new areas like activewear.
Levi's®
This is the company's main and most famous brand, known worldwide for its classic denim jeans, like the iconic 501® model. This segment sells a wide range of jeans, casual wear, and accessories under the Levi's® name, including its premium lines. The Levi's brand accounts for the vast majority of the company's sales and is the primary driver of its business. It sells products directly to consumers through its own stores and website, as well as through wholesale (selling in bulk to other retailers) partnerships with department stores and specialty shops.
Other Brands
This part of the business includes a few other distinct brands. Signature by Levi Strauss & Co.™ and Denizen® are brands sold at more affordable prices in large retail chains. The company also owns Beyond Yoga®, an athletic and lifestyle apparel brand, which represents a move into the growing activewear market. While much smaller than the main Levi's brand, these other brands allow the company to reach different types of customers and sell clothing at various price points.
What management is betting on now
The company is focused on growing its direct-to-consumer (DTC) business, which means selling directly to customers through its own stores and websites rather than through other retailers. This approach generally leads to higher profit margins (the amount of profit made on each sale). They are also working to expand beyond just men's jeans by growing their women's apparel and tops categories. Another key priority is international growth, with a focus on expanding in markets like Asia. Finally, the company is investing in sustainability, with goals to reduce water usage and greenhouse gas emissions in its supply chain (the entire process of making and selling its goods).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$2.30M
FY2025 Q1
$231.60M
FY2025 Q2
$-14.10M
FY2025 Q3
$146.00M
FY2025 Q4
$215.70M
FY2026 Q2
$152.10M
Revenue
$1.74B
Net income
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Diluted EPS
0.45
Operating cash flow
$211.50M
Free cash flow
$152.10M
Fetching…
Sources
Revenue
$1.77B
Net income
—
Diluted EPS
0.39
Operating cash flow
$266.80M
Free cash flow
$215.70M
Fetching…
Sources
Revenue
$1.45B
Net income
—
Diluted EPS
0.17
Operating cash flow
$185.50M
Free cash flow
$146.00M
Fetching…
Sources
Revenue
$1.53B
Net income
$135.00M
Diluted EPS
0.34
Operating cash flow
$52.50M
Free cash flow
$-14.10M
Fetching…
Sources
Revenue
$1.84B
Net income
$182.50M
Diluted EPS
0.46
Operating cash flow
$297.30M
Free cash flow
$231.60M
Fetching…
Sources
Revenue
$1.52B
Net income
$20.70M
Diluted EPS
0.05
Operating cash flow
$52.30M
Free cash flow
$2.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $42.32 vs current price $24.41
Wall Street consensus is the average analyst price target: $27.73 (-34.5% lower than our fair-value estimate).
Our most-likely fair value is $42.32 a share — about 73.4% above today's price of $24.41, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $1.5B. Interest coverage 14.5x.
Net debt
$1.51B
Interest coverage
14.50x
Levi Strauss & Co.'s profit covers its interest bill about 14.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LEVI
BASELINE
Levi Strauss & Co.
Total debt $2.32B Interest coverage 14.50x This is the baseline the peer rows are being compared against.
Total debt $4.98B Interest coverage 3.64x -75% vs LEVI Carries about 4.0x less debt cushion than LEVI.
Total debt $1.28B Interest coverage 5.56x -62% vs LEVI Carries about 2.6x less debt cushion than LEVI.
Total debt $3.92B Interest coverage 14.87x +3% vs LEVI Has roughly the same debt cushion as LEVI.
Total debt $1.42B Interest coverage 1.01x -93% vs LEVI Carries about 14.3x less debt cushion than LEVI.
Total debt $293.56M Interest coverage 308.17x +2,026% vs LEVI Carries about 21.3x more debt cushion than LEVI.
What you should know
The case for and against LEVI
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.4% last year.
-
Returns 25.4% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 2.1% (peer median: 2.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.95x
Forward P/E
14.49x
P/B
4.25x
P/S
1.44x
EV/EBITDA
11.53x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
61.7%
Operating margin
12.5%
Net margin
9.5%
ROE
25.4%
ROA
7.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
1.58x
Quick ratio
0.83x
Total debt
$2.32B
Total cash
$812.00M
Growth
How the business has been compounding
Revenue TTM
$6.50B
Revenue 5Y CAGR
2.2%
EPS TTM
1.36
EPS 5Y CAGR
0.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$688.60M
Free CF TTM
$308.20M
FCF margin
4.7%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
40.4%
Last ex-div date
2026-04-22