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Levi Strauss & logo

Levi Strauss &

LEVI
59
Apparel - Manufacturers · Consumer Cyclical
Price
$24.36
-0.63 (-2.52%)
Market Cap
$9.53B
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

2.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 409.8M (2021) → 399.7M (2025)

Levi Strauss & Co. makes and sells clothing, most famously its Levi's brand of denim jeans. The company also sells jackets, shirts, and other apparel under the Levi's and Dockers brands, selling to everyday consumers through its own stores, its website, and major retailers like Target and Walmart. It is one of the most recognized clothing brands in the world and invented the blue jean over 150 years ago.

The company earns money by selling clothing directly to shoppers and wholesale to retail partners, with its own stores and website growing as a share of total sales. Levi's operates in more than 110 countries, generating roughly $6 billion in annual revenue, and its brand recognition gives it pricing power that smaller competitors lack. The key growth driver is expanding direct-to-consumer sales, which carry higher margins, but the main risk is that consumers cut back on discretionary spending during economic downturns, which can quickly hurt clothing sales.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+32.4% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

7.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$717M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Levi Strauss & is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
61.9%
Premium pricing power — 61.9% gross margin
Operating Margin
11.4%
Modest — 11.4% operating margin
ROCE
6.1%
Weak — 6.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+4.1%
Slow sales growth (4.1% YoY)
EPS YoY
+75.0%
Earnings growing fast (75.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
114%
Turns 114% of profit into real cash
FCF Margin
7.5%
Modest free cash flow (7.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.48
Conservative — low debt load (0.48)
Interest Cover
13.48x
Comfortably covers interest (13.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
15.5x
Fair value — P/E 15.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-1.0
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
2.26%
Moderate income — 2.26% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+7.7%
Dividend growing modestly (7.7% YoY)

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