LEVI Stock Risk & Deep Value Analysis
Levi Strauss & Co
Consumer Cyclical • Apparel Manufacturing
DVR Score
out of 10
What You Need to Know About LEVI Stock
We analyzed Levi Strauss & Co using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran LEVI through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
LEVI Risk Analysis & Red Flags
What Could Go Wrong
A significant and prolonged downturn in global consumer discretionary spending or a sustained shift in fashion trends away from denim and core casual wear could severely impact Levi's revenue and profitability, given its reliance on these market dynamics.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Slight year-over-year decline in operating and gross margins (Q1 2026, though expected to expand in FY26)
- ⚠
Intense competition from fast fashion and agile direct-to-consumer brands
- ⚠
Potential for brand erosion among younger demographics if innovation lags
Upcoming Risk Events
- 📅
Global economic slowdown impacting discretionary consumer spending
- 📅
Increased raw material costs or supply chain disruptions
- 📅
Adverse shifts in fashion trends away from denim
When to Reconsider
- 🚪
Quarterly organic revenue growth decelerates below 5% for two consecutive quarters
- 🚪
Adjusted EBIT margin consistently falls below 10%
- 🚪
Management revises full-year guidance downwards significantly
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What Does Levi Strauss & Co (LEVI) Do?
Market Cap
$8.65B
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Employees
18,700
Levi Strauss & Co. designs, markets, and sells apparels and related accessories for men, women, and children in the United States and internationally. The company offers jeans, casual and dress pants, activewears, tops, shorts, skirts, dresses, jumpsuits, shirts, sweaters, jackets, footwear, and related accessories under the Levi's, Dockers, Signature by Levi Strauss & Co., Denizen, and Beyond Yoga brands. It also licenses Levi's and Dockers trademarks for various product categories, including footwear, belts, wallets, bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery. In addition, the company sells its products through third-party retailers, such as department stores, specialty retailers, third-party e-commerce sites, and franchisees; 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. Further, the company operates brand-dedicated stores and shop-in-shops. Levi Strauss & Co. was founded in 1853 and is headquartered in San Francisco, California.
Visit Levi Strauss & Co WebsiteInvestment Thesis
Levi Strauss & Co. represents a stable investment in a globally recognized and enduring brand that is effectively executing a multi-faceted growth strategy centered on direct-to-consumer expansion, product diversification, and international market penetration. Despite the mature nature of the apparel industry, Levi's consistent profitability, robust cash flow generation, and commitment to shareholder returns (via dividends and share repurchases) make it an attractive long-term holding for value-oriented investors, though it is not positioned for exponential 10x growth in the near to medium term.
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LEVI Price Targets & Strategy
12-Month Target
$26.10
Bull Case
$29.60
Bear Case
$21.30
Valuation Basis
Based on 18x forward P/E applied to estimated FY26 EPS of $1.45 = $26.10
Entry Strategy
Consider dollar-cost averaging in the $21-$23 range, seeking support at the 50-day moving average.
Exit Strategy
Take 50% profit at $29.00; set a stop loss at $20.00 if fundamental outlook deteriorates.
Portfolio Allocation
3-5% for moderate risk tolerance
Price Targets & Strategy
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Is LEVI Financially Healthy?
Valuation
P/E Ratio
13.98
Forward P/E
6.21
EV/EBITDA
6.21
PEG Ratio
1.40
Price/Book
2.44
Price/Sales
1.29
Profitability
Gross Margin
61.69%
Operating Margin
10.54%
Net Margin
9.52%
Return on Equity
28.33%
Revenue Growth
5.34%
EPS
$1.56
Balance Sheet
Current Ratio
1.55
Quick Ratio
0.94
Debt/Equity
0.46
Total Debt
$2.00B
Cash & Equivalents
$500.00M
Cash Flow
Operating Cash Flow
$800.00M
Free Cash Flow
$500.00M
EBITDA
$1.00B
Other
Beta (Volatility)
1.36
Dividend Yield
2.49%
Does LEVI Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Stable
Moat Sources
3 Identified
The Levi's brand has demonstrated exceptional durability and cultural relevance for over 150 years, creating strong customer loyalty and significant barriers for new entrants in the core denim market. Its global reach and established supply chain also confer cost advantages.
Moat Erosion Risks
- •Rapid shifts in consumer preferences away from denim or core casual wear
- •Intensified competition from private labels and digitally native brands
- •Failure to innovate and adapt to evolving fashion trends and sustainability demands
LEVI Competitive Moat Analysis
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LEVI Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral
Institutional Sentiment
Positive (UBS reaffirmed buy and raised price target post-Q1 earnings)
Insider Activity (Form 4)
No Form 4 filings reported in available data.
Options Flow
Normal options activity.
Earnings Intelligence
Next Earnings
Estimated late June/early July 2026 (Q2 2026)
Surprise Probability
Medium
Historical Earnings Pattern
Tends to react positively to earnings beats and guidance raises, as observed with Q1 2026 results.
Key Metrics to Watch
Competitive Position
Top Competitor
Nike (NKE)
Market Share Trend
Stable to gaining in specific categories (women's, tops) and channels (DTC) through strategic focus.
Valuation vs Peers
Levi's typically trades at a slight premium to general apparel peers due to its brand equity, but at a discount to high-growth, innovative lifestyle brands.
Competitive Advantages
- •Iconic global brand recognition and heritage
- •Extensive global distribution network and supply chain
- •Strong and growing direct-to-consumer (DTC) channel
- •Expertise in denim product innovation and quality
Market Intelligence
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What Could Drive LEVI Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings (Estimated late June/early July 2026)
- •Continued strong direct-to-consumer (DTC) growth above 10%
- •Successful integration and benefits from Dockers brand sale
Medium-Term (6-18 months)
- •Further international market expansion, particularly in Asia and Europe
- •Sustained growth in non-denim categories (women's, tops)
- •Margin expansion through cost efficiencies and pricing power
Long-Term (18+ months)
- •Leveraging brand strength for strategic acquisitions in adjacent lifestyle categories
- •Deepening customer loyalty through digital initiatives and personalized experiences
- •Further optimization of the global supply chain for efficiency
Catalysts & Growth Drivers
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What's the Bull Case for LEVI?
- ✓
Sustained organic revenue growth above market expectations
- ✓
Expansion of gross and adjusted EBIT margins
- ✓
Positive free cash flow generation and consistent capital returns
Bull Case Analysis
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Competing with LEVI
See how Levi Strauss & Co compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Levi Strauss & Co LEVI | $8.6B | 3.5 | 14.0 | $6.5B | 9.5% | 5.3% | |
Amazon.com Inc AMZN | $2.8T | 2.0 | 30.4 | $638.0B | 12.2% | 14.2% | Compare → |
Home Depot Inc HD | — | 0.5 | — | — | — | — | Compare → |
McDonald's Corp MCD | $221.1B | 0.1 | 26.4 | — | — | — | Compare → |
Nike Inc NKE | $65.8B | 1.0 | 29.2 | $46.3B | 4.8% | -2.7% | Compare → |
Tesla Inc TSLA | $1.5T | 4.2 | 380.1 | $94.8B | 4.0% | 2.3% | Compare → |
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How Levi Strauss & Co Makes Money
Levi Strauss & Co. is a global apparel company primarily known for its iconic denim products, including jeans, jackets, and accessories, sold under brands like Levi's and Signature by Levi Strauss & Co. (The Dockers brand was recently sold). The company generates revenue by designing, manufacturing, and marketing these products, selling them through a dual distribution model: its own branded retail stores and e-commerce platforms (direct-to-consumer or DTC), and through wholesale channels to department stores, specialty retailers, and franchised stores worldwide. Its customers are global consumers seeking quality, authentic, and fashionable casual wear.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Levi Strauss & Co (LEVI)?
As of April 25, 2026, Levi Strauss & Co has a DVR Score of 3.5 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Levi Strauss & Co?
Levi Strauss & Co's market capitalization is approximately $8.6B. The company operates in the Consumer Cyclical sector within the Apparel Manufacturing industry.
What ticker symbol does Levi Strauss & Co use?
LEVI is the ticker symbol for Levi Strauss & Co. The company trades on the NYQ.
What is the risk level for LEVI stock?
Our analysis rates Levi Strauss & Co's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of LEVI?
Levi Strauss & Co currently has a price-to-earnings (P/E) ratio of 14.0. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Does Levi Strauss & Co pay a dividend?
Yes, Levi Strauss & Co pays a dividend with a current yield of approximately 2.49%.
Is Levi Strauss & Co's revenue growing?
Levi Strauss & Co has reported revenue growth of 5.3%. The company is growing at a moderate pace.
Is LEVI stock profitable?
Levi Strauss & Co has a profit margin of 9.5%. The company is profitable but margins are modest.
How often is the LEVI DVR analysis updated?
Our AI-powered analysis of Levi Strauss & Co is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 25, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for LEVI (Levi Strauss & Co) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.