GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - New York Stock Exchange, Inc. - CA3759161035 - Common Stock - Currency: USD
Overall GIL gets a fundamental rating of 6 out of 10. We evaluated GIL against 48 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.
1. Profitability
1.1 Basic Checks
In the past year GIL was profitable.
In the past year GIL had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 10.79%, GIL belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
GIL has a better Return On Equity (27.52%) than 81.63% of its industry peers.
With an excellent Return On Invested Capital value of 18.97%, GIL belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
GIL had an Average Return On Invested Capital over the past 3 years of 18.12%. This is above the industry average of 13.58%.
The last Return On Invested Capital (18.97%) for GIL is above the 3 year average (18.12%), which is a sign of increasing profitability.
| 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
The Profit Margin of GIL (12.26%) is better than 91.84% of its industry peers.
In the last couple of years the Profit Margin of GIL has grown nicely.
With an excellent Operating Margin value of 19.34%, GIL belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
In the last couple of years the Operating Margin of GIL has grown nicely.
Looking at the Gross Margin, with a value of 30.69%, GIL is doing worse than 79.59% of the companies in the same industry.
GIL's Gross Margin has improved in the last couple of years.
| 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
GIL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for GIL is higher compared to a year ago.
2.2 Solvency
GIL has an Altman-Z score of 4.10. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL has a Altman-Z score of 4.10. This is in the better half of the industry: GIL outperforms 75.51% of its industry peers.
GIL has a debt to FCF ratio of 4.71. This is a neutral value as GIL would need 4.71 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.71, GIL perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that GIL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, GIL is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 4.71 | ||
| Altman-Z | 4.1 |
ROIC/WACC2.17
WACC8.73%
2.3 Liquidity
GIL has a Current Ratio of 2.22. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.22, GIL is doing good in the industry, outperforming 65.31% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that GIL may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, GIL is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
| 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.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 2.34% 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)2.34%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.29%
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 11.08% 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 5Y11.08%
Revenue Next Year5.17%
Revenue Next 2Y5.26%
Revenue Next 3Y4.92%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
GIL is valuated correctly with a Price/Earnings ratio of 15.76.
GIL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.18, GIL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.78, the valuation of GIL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 71.43% of the companies listed in the same industry.
GIL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIL is on the same level as its industry peers.
GIL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.43 | ||
| EV/EBITDA | 11.17 |
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.
A more expensive valuation may be justified as GIL's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)0.89
PEG (5Y)1.25
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.74%.
GIL's Dividend Yield is a higher than the industry average which is at 4.04.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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
GIL pays out 33.30% 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.
DP33.3%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
47.43
+1.42 (+3.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change0.03%
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap7.17B
Analysts81.82
Price Target44.49 (-6.2%)
Short Float %1.28%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.83
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)5.01%
PT rev (3m)13.32%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.35%
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 | 15.76 | ||
| Fwd PE | 11.78 | ||
| P/S | 2.19 | ||
| P/FCF | 20.43 | ||
| P/OCF | 14.3 | ||
| P/B | 4.92 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 11.17 |
EPS(TTM)3.01
EY6.35%
EPS(NY)4.03
Fwd EY8.49%
FCF(TTM)2.32
FCFY4.89%
OCF(TTM)3.32
OCFY6.99%
SpS21.63
BVpS9.63
TBVpS6.16
PEG (NY)0.89
PEG (5Y)1.25
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 | 4.1 |
F-Score5
WACC8.73%
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%