GILDAN ACTIVEWEAR INC (GIL.CA) Stock Fundamental Analysis
TSX:GIL - Toronto Stock Exchange - CA3759161035 - Common Stock - Currency: CAD
Overall GIL gets a fundamental rating of 6 out of 10. We evaluated GIL 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 has a correct valuation and a medium 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.
GIL had positive earnings in 4 of the past 5 years.
GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIL's Return On Assets of 10.39% is amongst the best of the industry. GIL outperforms 100.00% of its industry peers.
GIL's Return On Equity of 28.95% is amongst the best of the industry. GIL outperforms 100.00% of its industry peers.
The Return On Invested Capital of GIL (16.52%) is better than 100.00% of its industry peers.
GIL had an Average Return On Invested Capital over the past 3 years of 18.95%. This is significantly above the industry average of 10.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.95% | ||
| ROIC | 16.52% |
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 (12.38%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of GIL has grown nicely.
The Operating Margin of GIL (19.73%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of GIL has grown nicely.
The Gross Margin of GIL (30.87%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GIL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.73% | ||
| PM (TTM) | 12.38% | ||
| GM | 30.87% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIL is creating value.
GIL has less shares outstanding than it did 1 year ago.
GIL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GIL has a worse debt to assets ratio.
2.2 Solvency
GIL has an Altman-Z score of 3.91. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
GIL has a debt to FCF ratio of 7.46. This is a slightly negative value and a sign of low solvency as GIL would need 7.46 years to pay back of all of its debts.
GIL has a worse Debt to FCF ratio (7.46) than 60.00% of its industry peers.
GIL has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
GIL has a Debt to Equity ratio of 1.35. This is in the lower half of the industry: GIL underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 3.91 |
ROIC/WACC2.23
WACC7.39%
2.3 Liquidity
GIL has a Current Ratio of 3.91. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
GIL has a Current ratio of 3.91. This is in the better half of the industry: GIL outperforms 80.00% of its industry peers.
A Quick Ratio of 1.59 indicates that GIL should not have too much problems paying its short term obligations.
The Quick ratio of GIL (1.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.07% over the past year.
GIL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.64% yearly.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 3.06% in the last year.
GIL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.98% yearly.
EPS 1Y (TTM)11.07%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%0%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.28%
3.2 Future
Based on estimates for the next years, GIL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.99% on average per year.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y10.99%
Revenue Next Year5.32%
Revenue Next 2Y5.23%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.35 indicates a correct valuation of GIL.
GIL's Price/Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 80.00% of the companies in the same industry.
GIL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
GIL is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
GIL's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIL is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. GIL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIL is valued a bit cheaper than 80.00% of the companies in the same industry.
60.00% of the companies in the same industry are cheaper than GIL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.18 | ||
| EV/EBITDA | 11.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 13.55% in the coming years.
PEG (NY)0.86
PEG (5Y)1.21
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.70%.
GIL's Dividend Yield is rather good when compared to the industry average which is at 1.70. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of GIL grows each year by 21.39%, which is quite nice.
GIL has been paying a dividend for at least 10 years, so it has 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
32.80% of the earnings are spent on dividend by GIL. This is a low number and sustainable payout ratio.
GIL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.8%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
TSX:GIL (6/13/2025, 7:00:00 PM)
62.92
-2.19 (-3.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap9.51B
Analysts81.67
Price Target59.27 (-5.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.13
Dividend Growth(5Y)21.39%
DP32.8%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)1.85%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.29%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.15%
EPS beat(12)9
Avg EPS beat(12)1.67%
EPS beat(16)13
Avg EPS beat(16)10.37%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)1.28%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)-0.76%
PT rev (3m)-2.02%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 11.47 | ||
| P/S | 2.12 | ||
| P/FCF | 27.18 | ||
| P/OCF | 18.06 | ||
| P/B | 4.97 | ||
| P/tB | 7.91 | ||
| EV/EBITDA | 11.08 |
EPS(TTM)4.1
EY6.52%
EPS(NY)5.49
Fwd EY8.72%
FCF(TTM)2.32
FCFY3.68%
OCF(TTM)3.48
OCFY5.54%
SpS29.62
BVpS12.67
TBVpS7.95
PEG (NY)0.86
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.95% | ||
| ROCE | 19.14% | ||
| ROIC | 16.52% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 20.49% | ||
| OM | 19.73% | ||
| PM (TTM) | 12.38% | ||
| GM | 30.87% | ||
| FCFM | 7.82% |
ROA(3y)13.9%
ROA(5y)10.72%
ROE(3y)27.85%
ROE(5y)20.15%
ROIC(3y)18.95%
ROIC(5y)N/A
ROICexc(3y)20.13%
ROICexc(5y)N/A
ROICexgc(3y)25.01%
ROICexgc(5y)N/A
ROCE(3y)21.97%
ROCE(5y)N/A
ROICexcg growth 3Y1.1%
ROICexcg growth 5Y14.24%
ROICexc growth 3Y3.31%
ROICexc growth 5Y15.27%
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%
F-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 94.7% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 49.22% | ||
| Profit Quality | 63.13% | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 3.91 |
F-Score5
WACC7.39%
ROIC/WACC2.23
Cap/Depr(3y)158.52%
Cap/Depr(5y)122.27%
Cap/Sales(3y)6.22%
Cap/Sales(5y)5.21%
Profit Quality(3y)60.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.07%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%0%
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y10.99%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.28%
Revenue Next Year5.32%
Revenue Next 2Y5.23%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
EBIT growth 1Y18.58%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year25.92%
EBIT Next 3Y10.86%
EBIT Next 5Y8.14%
FCF growth 1Y22874.2%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y35.38%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%