Is Levi Strauss (LEVI) Undervalued As Its Direct To Consumer Shift Lifts Margins?
How Levi Strauss Stock Has Been Performing
Levi Strauss (LEVI) has been on the radar for investors watching apparel stocks, with the share price at $24.41 as of the last close. Recent performance metrics across different time frames help frame how the stock has been trading.
Over the past day, the stock moved 0.45%. Over the past week it declined 0.45%. Over the past month it returned 0.16%, while over the past 3 months it returned 7.68%.
Looking at longer horizons, Levi Strauss shows a year to date return of 17.24% and a 1 year total return of 25.19%. The 3 year total return is approximately 8x, while the 5 year total return is slightly negative at 0.47%.
The company reports annual revenue of US$6.61b and net income of US$554.1m. Recent data shows annual revenue growth of 5.09% and net income growth of 13.78%. These figures give investors a snapshot of scale and recent financial momentum without pointing to any specific future path.
See our latest analysis for Levi Strauss.
For investors, Levi Strauss now combines a 17.24% year to date share price return with a 25.19% 1 year total shareholder return, which points to momentum building over the past year rather than fading.
The recent share price gain over the past quarter, alongside the stronger 3 year total shareholder return of 82.23%, suggests investors have been reassessing both growth prospects and risk for Levi Strauss in light of its revenue scale and profitability.
If you are comparing Levi Strauss with other opportunities, this can be a useful moment to scan the market for companies exposed to similar long term shifts in consumer demand through the 20 top founder-led companies
Recent gains and mixed long term returns at Levi Strauss can reflect either improving conviction in the business or a swing in market mood. The next step is to see what the current valuation suggests.
Most Popular Narrative: 13.4% Undervalued
On this view, Levi Strauss has a narrative fair value of $28.20 versus the last close at $24.41. This frames the stock as trading below that narrative estimate while hinging heavily on brand strength and earnings power.
Levi's decisive shift to a Direct-to-Consumer-first business, now representing over half of sales, is delivering higher margins (DTC EBIT up 400bps YTD), greater control over brand experience, and faster innovation cycles, driving sustained improvements in net margins and future earnings.
Want to see what sits behind that margin story for Levi Strauss? The narrative focuses on revenue trends, profitability dynamics, and a future earnings multiple that reflects how the market values this brand.
Result: Fair Value of $28.20 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Levi Strauss story can shift quickly if tariff costs bite into margins or if denim demand softens as consumers move toward other apparel styles.
Find out about the key risks to this Levi Strauss narrative.
Another View on Levi Strauss Valuation
The SWS DCF model paints a very different picture for Levi Strauss. On this view, the stock at $24.30 is trading above an estimated future cash flow value of $11.97. That screens as overvalued using this method and raises a simple question for you: Which story do you find more convincing?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Levi Strauss for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
After weighing both the upside and the concerns around Levi Strauss, it may be useful to review the underlying data yourself and move quickly to form an independent view. To see how the current balance of risks and rewards compares, review the 4 key rewards and 1 important warning sign.
Looking For More Investment Ideas Beyond Levi Strauss?
If Levi Strauss caught your attention, do not stop here. Broaden your watchlist now so you are not relying on a single stock story.
- Target resilient income by checking out 8 dividend fortresses that may offer meaningful yield alongside established business models.
- Scan for potential value opportunities through 49 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their financial profile.
- Seek stability in tougher markets by reviewing 78 resilient stocks with low risk scores that screen for companies with more resilient risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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