Levi Strauss Stock Story

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LEVI
 Stock
  

USD 19.53  0.01  0.05%   

By Gabriel Shpitalnik
Macroaxis Story
Lets try to concentrate on the odds of Levi Strauss to fully recover from the current drop as its shares went up 3.86%. This firm current daily volatility is 2.53 percent, with a beta of 1.34 and an alpha of -0.08 over DOW. While some millenniums are indifferent towards apparel, it makes sense to concentrate on Levi Strauss Co. I will address the reasons why this entity does not get much respect from stockholders under the current market uncertainty.
Published over a month ago
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Breaking down Levi Strauss (NYSE:LEVI) volatility drop

Levi Strauss Co currently holds roughly 777.15 M in cash with 753.92 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.96.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Levi Strauss has an asset utilization ratio of 151.38 percent. This implies that the company is making $1.51 for each dollar of assets. An increasing asset utilization means that Levi Strauss Co is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Levi Strauss, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Levi Strauss along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Levi Strauss' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Levi Strauss in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Levi Strauss. Your research has to be compared to or analyzed against Levi Strauss' peers to derive any actionable benefits. When done correctly, Levi Strauss' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Levi Strauss.

How important is Levi Strauss's Liquidity

Levi Strauss financial leverage refers to using borrowed capital as a funding source to finance Levi Strauss Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Levi Strauss financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Levi Strauss's total debt and its cash.

How does Levi Strauss utilize its cash?

To perform a cash flow analysis of Levi Strauss, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Levi Strauss is receiving and how much cash it distributes out in a given period. The Levi Strauss cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Levi Strauss Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 232.91 Million

Levi Strauss Correlation with Peers

Investors in Levi Strauss can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Levi Strauss Co. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Levi Strauss and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Levi Strauss is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Levi Strauss for more details

Conversion by Seth Jaffe of 12782 shares of Levi Strauss

Legal trades by Levi Strauss insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Levi Strauss insider trading alert for conversion of class b common stock by Seth Jaffe, EVP & General Counsel, on 1st of August 2022. This event was filed by Levi Strauss Co with SEC on 2022-08-01. Statement of changes in beneficial ownership - SEC Form 4. Seth Jaffe currently serves as executive vice president, general counsel of Levi Strauss [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another angle On Levi Strauss

Levi Strauss has Sharpe Ratio of -0.096, which conveys that the firm had -0.096% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Levi Strauss exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Levi Strauss Co risk adjusted performance of (0.16), and Mean Deviation of 2.04 to check out the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Can Levi Strauss build up on the current rise?

The standard deviation is down to 2.51 as of today. Levi Strauss Co exhibits very low volatility with skewness of 0.06 and kurtosis of -0.48. However, we advise investors to further study Levi Strauss Co technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Levi Strauss' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Levi Strauss' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Levi Strauss Implied Volatility

Levi Strauss' implied volatility exposes the market's sentiment of Levi Strauss Co stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Levi Strauss' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Levi Strauss stock will not fluctuate a lot when Levi Strauss' options are near their expiration.

The Current Takeaway on Levi Strauss Investment

While other entities in the apparel manufacturing industry are either recovering or due for a correction, Levi Strauss may not be performing as strong as the other in terms of long-term growth potentials. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Levi Strauss.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Levi Strauss Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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