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GILDAN ACTIVEWEAR INC (GIL.CA) Stock Fundamental Analysis

TSX:GIL - Toronto Stock Exchange - CA3759161035 - Common Stock - Currency: CAD

73.7  +1.31 (+1.81%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to GIL. GIL was compared to 5 industry peers in the Textiles, Apparel & Luxury Goods industry. While GIL has a great profitability rating, there are some minor concerns on its financial health. GIL has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

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.
Each year in the past 5 years GIL had a positive operating cash flow.
GIL.CA Yearly Net Income VS EBIT VS OCF VS FCFGIL.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

1.2 Ratios

The Return On Assets of GIL (11.29%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 26.94%, GIL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.43%, GIL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GIL is above the industry average of 10.92%.
Industry RankSector Rank
ROA 11.29%
ROE 26.94%
ROIC 14.43%
ROA(3y)16.76%
ROA(5y)10.18%
ROE(3y)29.22%
ROE(5y)17.47%
ROIC(3y)15.06%
ROIC(5y)N/A
GIL.CA Yearly ROA, ROE, ROICGIL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

GIL has a Profit Margin of 13.05%. 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.
GIL has a better Operating Margin (18.05%) than 100.00% of its industry peers.
GIL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 29.84%, 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 remained more or less at the same level.
Industry RankSector Rank
OM 18.05%
PM (TTM) 13.05%
GM 29.84%
OM growth 3YN/A
OM growth 5Y1.73%
PM growth 3YN/A
PM growth 5Y6.72%
GM growth 3Y30.28%
GM growth 5Y-0.72%
GIL.CA Yearly Profit, Operating, Gross MarginsGIL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIL is creating some value.
GIL has less shares outstanding than it did 1 year ago.
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.
GIL.CA Yearly Shares OutstandingGIL.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
GIL.CA Yearly Total Debt VS Total AssetsGIL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

GIL has an Altman-Z score of 4.36. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GIL (4.36) is comparable to the rest of the industry.
The Debt to FCF ratio of GIL is 4.12, which is a neutral value as it means it would take GIL, 4.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.12, GIL is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
GIL has a Debt/Equity ratio of 0.81. This is a neutral value indicating GIL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 4.12
Altman-Z 4.36
ROIC/WACC1.65
WACC8.72%
GIL.CA Yearly LT Debt VS Equity VS FCFGIL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 2.31 indicates that GIL has no problem at all paying its short term obligations.
The Current ratio of GIL (2.31) is comparable to the rest of the industry.
A Quick Ratio of 0.98 indicates that GIL may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, GIL is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 0.98
GIL.CA Yearly Current Assets VS Current LiabilitesGIL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

5

3. Growth

3.1 Past

GIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.62%, which is quite good.
Measured over the past 5 years, GIL shows a small growth in Earnings Per Share. The EPS has been growing by 6.68% on average per year.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 3.15% in the last year.
GIL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.90% yearly.
EPS 1Y (TTM)18.62%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%14.86%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%2.44%

3.2 Future

GIL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.52% yearly.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y17.18%
EPS Next 2Y16.67%
EPS Next 3Y15.48%
EPS Next 5Y12.52%
Revenue Next Year2.62%
Revenue Next 2Y3.61%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
GIL.CA Yearly Revenue VS EstimatesGIL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B
GIL.CA Yearly EPS VS EstimatesGIL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

GIL is valuated rather expensively with a Price/Earnings ratio of 17.72.
Based on the Price/Earnings ratio, GIL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
GIL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.43.
GIL is valuated correctly with a Price/Forward Earnings ratio of 14.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GIL to the average of the S&P500 Index (23.78), we can say GIL is valued slightly cheaper.
Industry RankSector Rank
PE 17.72
Fwd PE 14.85
GIL.CA Price Earnings VS Forward Price EarningsGIL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GIL is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIL indicates a slightly more expensive valuation: GIL is more expensive than 60.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.86
EV/EBITDA 12.9
GIL.CA Per share dataGIL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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 15.48% in the coming years.
PEG (NY)1.03
PEG (5Y)2.65
EPS Next 2Y16.67%
EPS Next 3Y15.48%

5

5. Dividend

5.1 Amount

GIL has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 1.53, GIL pays a better dividend. On top of this GIL pays more dividend than 100.00% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.30, GIL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.53%

5.2 History

On average, the dividend of GIL grows each year by 18.02%, 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)18.02%
Div Incr Years4
Div Non Decr Years4
GIL.CA Yearly Dividends per shareGIL.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

5.3 Sustainability

GIL pays out 31.76% of its income as dividend. This is a sustainable payout ratio.
The dividend of GIL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.76%
EPS Next 2Y16.67%
EPS Next 3Y15.48%
GIL.CA Yearly Income VS Free CF VS DividendGIL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M
GIL.CA Dividend Payout.GIL.CA Dividend Payout, showing the Payout Ratio.GIL.CA Dividend Payout.PayoutRetained Earnings

GILDAN ACTIVEWEAR INC

TSX:GIL (2/18/2025, 7:00:00 PM)

73.7

+1.31 (+1.81%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-19 2025-02-19/bmo
Inst Owners88.5%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap11.38B
Analysts81.82
Price Target56.45 (-23.41%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.53%
Yearly Dividend0.67
Dividend Growth(5Y)18.02%
DP31.76%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.78%
Min EPS beat(2)-0.29%
Max EPS beat(2)1.84%
EPS beat(4)3
Avg EPS beat(4)4.43%
Min EPS beat(4)-0.29%
Max EPS beat(4)14.18%
EPS beat(8)5
Avg EPS beat(8)0.13%
EPS beat(12)9
Avg EPS beat(12)7.41%
EPS beat(16)13
Avg EPS beat(16)26.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)0.18%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)1.37%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)8
Avg Revenue beat(12)2.14%
Revenue beat(16)12
Avg Revenue beat(16)4.78%
PT rev (1m)0.79%
PT rev (3m)13.44%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)4.16%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 17.72
Fwd PE 14.85
P/S 2.48
P/FCF 20.86
P/OCF 15.13
P/B 5.12
P/tB 7.72
EV/EBITDA 12.9
EPS(TTM)4.16
EY5.64%
EPS(NY)4.96
Fwd EY6.74%
FCF(TTM)3.53
FCFY4.79%
OCF(TTM)4.87
OCFY6.61%
SpS29.7
BVpS14.39
TBVpS9.55
PEG (NY)1.03
PEG (5Y)2.65
Profitability
Industry RankSector Rank
ROA 11.29%
ROE 26.94%
ROCE 20.04%
ROIC 14.43%
ROICexc 15.06%
ROICexgc 18.56%
OM 18.05%
PM (TTM) 13.05%
GM 29.84%
FCFM 11.9%
ROA(3y)16.76%
ROA(5y)10.18%
ROE(3y)29.22%
ROE(5y)17.47%
ROIC(3y)15.06%
ROIC(5y)N/A
ROICexc(3y)16.23%
ROICexc(5y)N/A
ROICexgc(3y)20.62%
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y1.92%
ROICexc growth 3YN/A
ROICexc growth 5Y3%
OM growth 3YN/A
OM growth 5Y1.73%
PM growth 3YN/A
PM growth 5Y6.72%
GM growth 3Y30.28%
GM growth 5Y-0.72%
F-Score5
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 4.12
Debt/EBITDA 1.76
Cap/Depr 107.15%
Cap/Sales 4.5%
Interest Coverage 7.56
Cash Conversion 73.69%
Profit Quality 91.15%
Current Ratio 2.31
Quick Ratio 0.98
Altman-Z 4.36
F-Score5
WACC8.72%
ROIC/WACC1.65
Cap/Depr(3y)154.31%
Cap/Depr(5y)118.39%
Cap/Sales(3y)6.17%
Cap/Sales(5y)5.28%
Profit Quality(3y)58.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.62%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%14.86%
EPS Next Y17.18%
EPS Next 2Y16.67%
EPS Next 3Y15.48%
EPS Next 5Y12.52%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%2.44%
Revenue Next Year2.62%
Revenue Next 2Y3.61%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
EBIT growth 1Y9.73%
EBIT growth 3YN/A
EBIT growth 5Y3.67%
EBIT Next Year52.98%
EBIT Next 3Y19.83%
EBIT Next 5Y12.43%
FCF growth 1Y118.94%
FCF growth 3Y-1.72%
FCF growth 5Y-3.91%
OCF growth 1Y40.14%
OCF growth 3Y9.62%
OCF growth 5Y0.3%