GILDAN ACTIVEWEAR INC (GIL.CA) Stock Fundamental Analysis
TSX:GIL - Toronto Stock Exchange - CA3759161035 - Common Stock - Currency: CAD
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.
GIL had a positive operating cash flow in the past year.
Of the past 5 years GIL 4 years were profitable.
In the past 5 years GIL always reported a positive cash flow from operatings.
1.2 Ratios
GIL has a Return On Assets of 10.79%. This is amongst the best in the industry. GIL outperforms 100.00% of its industry peers.
GIL has a Return On Equity of 27.52%. This is amongst the best in the industry. GIL outperforms 100.00% of its industry peers.
GIL has a better Return On Invested Capital (18.97%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIL is above the industry average of 13.19%.
The 3 year average ROIC (18.12%) for GIL is below the current ROIC(18.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 27.52% | ||
| ROIC | 18.97% |
ROA(3y)13.9%
ROA(5y)10.72%
ROE(3y)27.85%
ROE(5y)20.15%
ROIC(3y)18.12%
ROIC(5y)N/A
1.3 Margins
GIL has a Profit Margin of 12.26%. This is amongst the best in the industry. GIL outperforms 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 19.34%, 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.
Looking at the Gross Margin, with a value of 30.69%, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of GIL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.34% | ||
| PM (TTM) | 12.26% | ||
| GM | 30.69% |
OM growth 3Y-0.84%
OM growth 5Y9.49%
PM growth 3Y-16.13%
PM growth 5Y5.9%
GM growth 3Y0.79%
GM growth 5Y4.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIL is creating value.
Compared to 1 year ago, GIL has less shares outstanding
The number of shares outstanding for GIL has been reduced compared to 5 years ago.
GIL has a worse debt/assets ratio than last year.
2.2 Solvency
GIL has an Altman-Z score of 4.05. 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 4.05, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of GIL is 4.71, which is a neutral value as it means it would take GIL, 4.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.71, GIL is doing worse than 60.00% of the companies in the same industry.
GIL has a Debt/Equity ratio of 0.92. This is a neutral value indicating GIL is somewhat dependend on debt financing.
GIL's Debt to Equity ratio of 0.92 is in line compared to the rest of the industry. GIL outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.71 | ||
| Altman-Z | 4.05 |
ROIC/WACC2.17
WACC8.74%
2.3 Liquidity
A Current Ratio of 2.22 indicates that GIL has no problem at all paying its short term obligations.
GIL has a Current ratio of 2.22. This is comparable to the rest of the industry: GIL outperforms 60.00% of its industry peers.
A Quick Ratio of 0.89 indicates that GIL may have some problems paying its short term obligations.
GIL has a Quick ratio of 0.89. This is in the lower half of the industry: GIL underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.89 |
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.
GIL shows a small growth in Revenue. In the last year, the Revenue has grown by 2.34%.
Measured over the past years, GIL shows a small growth in Revenue. The Revenue has been growing by 2.98% on average per year.
EPS 1Y (TTM)11.07%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%0%
Revenue 1Y (TTM)2.34%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.29%
3.2 Future
The Earnings Per Share is expected to grow by 11.08% on average over the next years. This is quite good.
Based on estimates for the next years, GIL will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y11.08%
Revenue Next Year5.17%
Revenue Next 2Y5.26%
Revenue Next 3Y4.92%
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.
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 15.31 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 27.85, which is the current average of the S&P500 Index.
GIL is valuated reasonably with a Price/Forward Earnings ratio of 11.44.
80.00% of the companies in the same industry are more expensive than GIL, based on the Price/Forward Earnings ratio.
GIL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than GIL, based on the Enterprise Value to EBITDA ratio.
GIL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GIL is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.92 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
GIL's 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.
GIL's earnings are expected to grow with 13.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)1.21
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, GIL has a reasonable but not impressive dividend return.
GIL's Dividend Yield is rather good when compared to the industry average which is at 1.88. 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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
33.30% of the earnings are spent on dividend by GIL. This is a low number and sustainable payout ratio.
The dividend of GIL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.3%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
TSX:GIL (5/1/2025, 7:00:00 PM)
63.69
+0.16 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap9.67B
Analysts81.82
Price Target61.51 (-3.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend1.15
Dividend Growth(5Y)21.39%
DP33.3%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.78%
Min EPS beat(2)-0.29%
Max EPS beat(2)1.85%
EPS beat(4)3
Avg EPS beat(4)4.4%
Min EPS beat(4)-0.29%
Max EPS beat(4)14.18%
EPS beat(8)6
Avg EPS beat(8)1.08%
EPS beat(12)9
Avg EPS beat(12)5.51%
EPS beat(16)13
Avg EPS beat(16)20.68%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)1.28%
Revenue beat(8)5
Avg Revenue beat(8)0.43%
Revenue beat(12)8
Avg Revenue beat(12)1.78%
Revenue beat(16)12
Avg Revenue beat(16)4.12%
PT rev (1m)1.68%
PT rev (3m)9.81%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 11.44 | ||
| P/S | 2.14 | ||
| P/FCF | 19.92 | ||
| P/OCF | 13.95 | ||
| P/B | 4.8 | ||
| P/tB | 7.51 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)4.16
EY6.53%
EPS(NY)5.57
Fwd EY8.74%
FCF(TTM)3.2
FCFY5.02%
OCF(TTM)4.57
OCFY7.17%
SpS29.79
BVpS13.27
TBVpS8.48
PEG (NY)0.86
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.79% | ||
| ROE | 27.52% | ||
| ROCE | 21.98% | ||
| ROIC | 18.97% | ||
| ROICexc | 20.05% | ||
| ROICexgc | 24.84% | ||
| OM | 19.34% | ||
| PM (TTM) | 12.26% | ||
| GM | 30.69% | ||
| FCFM | 10.73% |
ROA(3y)13.9%
ROA(5y)10.72%
ROE(3y)27.85%
ROE(5y)20.15%
ROIC(3y)18.12%
ROIC(5y)N/A
ROICexc(3y)19.25%
ROICexc(5y)N/A
ROICexgc(3y)23.92%
ROICexgc(5y)N/A
ROCE(3y)21.01%
ROCE(5y)N/A
ROICexcg growth 3Y-3.08%
ROICexcg growth 5Y11.38%
ROICexc growth 3Y-0.96%
ROICexc growth 5Y12.39%
OM growth 3Y-0.84%
OM growth 5Y9.49%
PM growth 3Y-16.13%
PM growth 5Y5.9%
GM growth 3Y0.79%
GM growth 5Y4.23%
F-Score5
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.71 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 108.79% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 65.05% | ||
| Profit Quality | 87.57% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 4.05 |
F-Score5
WACC8.74%
ROIC/WACC2.17
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 5Y11.08%
Revenue 1Y (TTM)2.34%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.29%
Revenue Next Year5.17%
Revenue Next 2Y5.26%
Revenue Next 3Y4.92%
Revenue Next 5Y4.87%
EBIT growth 1Y20.78%
EBIT growth 3Y2.95%
EBIT growth 5Y12.75%
EBIT Next Year27.15%
EBIT Next 3Y12.46%
EBIT Next 5Y8.39%
FCF growth 1Y3.67%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y-8.27%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%