GILDAN ACTIVEWEAR INC (GIL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GIL - CA3759161035 - Common Stock
90.68 CAD
-1.01 (-1.1%)
GIL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 5 industry peers in the Textiles, Apparel & Luxury Goods industry. While GIL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GIL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- GIL had positive earnings in the past year.
- In the past year GIL had a positive cash flow from operations.
- Of the past 5 years GIL 4 years were profitable.
- GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.66%, GIL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of GIL (31.90%) is better than 100.00% of its industry peers.
- GIL's Return On Invested Capital of 21.27% is amongst the best of the industry. GIL outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GIL is significantly above the industry average of 9.96%.
- The 3 year average ROIC (18.95%) for GIL is below the current ROIC(21.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 31.9% | ||
| ROIC | 21.27% |
ROA(3y)13.9%
ROA(5y)10.72%
ROE(3y)27.85%
ROE(5y)20.15%
ROIC(3y)18.95%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of GIL (14.12%) is better than 100.00% of its industry peers.
- GIL's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 21.74%, GIL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- GIL's Operating Margin has improved in the last couple of years.
- The Gross Margin of GIL (31.85%) is comparable to the rest of the industry.
- GIL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.74% | ||
| PM (TTM) | 14.12% | ||
| GM | 31.85% |
OM growth 3Y3.43%
OM growth 5Y12.3%
PM growth 3Y-16.13%
PM growth 5Y5.9%
GM growth 3Y0.79%
GM growth 5Y4.23%
2. Health
2.1 Basic Checks
- GIL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- GIL has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GIL has less shares outstanding
- GIL has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.99 indicates that GIL is not in any danger for bankruptcy at the moment.
- GIL has a Altman-Z score (4.99) which is in line with its industry peers.
- GIL has a debt to FCF ratio of 5.23. This is a neutral value as GIL would need 5.23 years to pay back of all of its debts.
- GIL's Debt to FCF ratio of 5.23 is on the low side compared to the rest of the industry. GIL is outperformed by 60.00% of its industry peers.
- A Debt/Equity ratio of 0.94 indicates that GIL is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.94, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 4.99 |
ROIC/WACC2
WACC10.65%
2.3 Liquidity
- A Current Ratio of 2.01 indicates that GIL has no problem at all paying its short term obligations.
- The Current ratio of GIL (2.01) is comparable to the rest of the industry.
- GIL has a Quick Ratio of 2.01. This is a bad value and indicates that GIL is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- GIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, which is quite good.
- The Earnings Per Share has been growing by 12.64% on average over the past years. This is quite good.
- GIL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.04%.
- GIL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.98% yearly.
EPS 1Y (TTM)15.7%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.18%
3.2 Future
- The Earnings Per Share is expected to grow by 16.88% on average over the next years. This is quite good.
- Based on estimates for the next years, GIL will show a quite strong growth in Revenue. The Revenue will grow by 19.17% on average per year.
EPS Next Y16.81%
EPS Next 2Y23.26%
EPS Next 3Y21.91%
EPS Next 5Y16.88%
Revenue Next Year6.84%
Revenue Next 2Y46.32%
Revenue Next 3Y30.77%
Revenue Next 5Y19.17%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.50 indicates a rather expensive valuation of GIL.
- GIL's Price/Earnings ratio is rather cheap when compared to the industry. GIL is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GIL to the average of the S&P500 Index (27.25), we can say GIL is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 14.46, GIL is valued correctly.
- 100.00% of the companies in the same industry are more expensive than GIL, based on the Price/Forward Earnings ratio.
- GIL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GIL.
- Based on the Price/Free Cash Flow ratio, GIL is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.2 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
- GIL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of GIL may justify a higher PE ratio.
- A more expensive valuation may be justified as GIL's earnings are expected to grow with 21.91% in the coming years.
PEG (NY)1.16
PEG (5Y)1.54
EPS Next 2Y23.26%
EPS Next 3Y21.91%
5. Dividend
5.1 Amount
- GIL has a Yearly Dividend Yield of 1.36%.
- GIL's Dividend Yield is rather good when compared to the industry average which is at 0.27. GIL pays more dividend than 100.00% of the companies in the same industry.
- GIL's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
- The dividend of GIL is nicely growing with an annual growth rate of 21.39%!
- GIL has paid a dividend for at least 10 years, which is a reliable track record.
- GIL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)21.39%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- GIL pays out 28.02% of its income as dividend. This is a sustainable payout ratio.
- GIL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.02%
EPS Next 2Y23.26%
EPS Next 3Y21.91%
GILDAN ACTIVEWEAR INC / GIL.CA FAQ
What is the ChartMill fundamental rating of GILDAN ACTIVEWEAR INC (GIL.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIL.CA.
What is the valuation status of GILDAN ACTIVEWEAR INC (GIL.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to GILDAN ACTIVEWEAR INC (GIL.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for GILDAN ACTIVEWEAR INC?
GILDAN ACTIVEWEAR INC (GIL.CA) has a profitability rating of 9 / 10.
How financially healthy is GILDAN ACTIVEWEAR INC?
The financial health rating of GILDAN ACTIVEWEAR INC (GIL.CA) is 5 / 10.
What is the earnings growth outlook for GILDAN ACTIVEWEAR INC?
The Earnings per Share (EPS) of GILDAN ACTIVEWEAR INC (GIL.CA) is expected to grow by 16.81% in the next year.