GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
USA - NYSE:GIL - CA3759161035 - Common Stock
61.02 USD
+0.59 (+0.98%)
61.02 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GIL. GIL was compared to 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
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.
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 12.15%, GIL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
GIL has a better Return On Equity (34.18%) than 89.58% of its industry peers.
The Return On Invested Capital of GIL (17.97%) is better than 85.42% 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 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 34.18% | ||
| ROIC | 17.97% |
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
Looking at the Profit Margin, with a value of 14.55%, GIL belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
GIL's Profit Margin has improved in the last couple of years.
GIL has a better Operating Margin (21.50%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of GIL has grown nicely.
Looking at the Gross Margin, with a value of 31.17%, GIL is doing worse than 77.08% 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 | 21.5% | ||
| PM (TTM) | 14.55% | ||
| GM | 31.17% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
An Altman-Z score of 4.41 indicates that GIL is not in any danger for bankruptcy at the moment.
GIL's Altman-Z score of 4.41 is fine compared to the rest of the industry. GIL outperforms 77.08% of its industry peers.
The Debt to FCF ratio of GIL is 6.43, which is on the high side as it means it would take GIL, 6.43 years of fcf income to pay off all of its debts.
GIL's Debt to FCF ratio of 6.43 is in line compared to the rest of the industry. GIL outperforms 50.00% of its industry peers.
GIL has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
GIL has a worse Debt to Equity ratio (1.37) than 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.83
WACC9.8%
2.3 Liquidity
A Current Ratio of 3.87 indicates that GIL has no problem at all paying its short term obligations.
GIL has a Current ratio of 3.87. This is amongst the best in the industry. GIL outperforms 95.83% of its industry peers.
GIL has a Quick Ratio of 1.67. This is a normal value and indicates that GIL is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.67, GIL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.87 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.89% over the past year.
Measured over the past years, GIL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.64% on average per year.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 4.12% in the last year.
The Revenue has been growing slightly by 2.98% on average over the past years.
EPS 1Y (TTM)14.89%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%31.08%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%6.53%
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 15.70% on average per year.
The Revenue is expected to grow by 19.31% on average over the next years. This is quite good.
EPS Next Y16.37%
EPS Next 2Y16.79%
EPS Next 3Y17.25%
EPS Next 5Y15.7%
Revenue Next Year5.29%
Revenue Next 2Y5.4%
Revenue Next 3Y4.79%
Revenue Next 5Y19.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 rather expensively with a Price/Earnings ratio of 18.83.
60.42% of the companies in the same industry are more expensive than GIL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GIL to the average of the S&P500 Index (27.08), we can say GIL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.86, the valuation of GIL can be described as correct.
Based on the Price/Forward Earnings ratio, GIL is valued a bit cheaper than 64.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. GIL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.64 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
GIL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GIL has an outstanding profitability rating, which may justify a higher PE ratio.
GIL's earnings are expected to grow with 17.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)1.49
EPS Next 2Y16.79%
EPS Next 3Y17.25%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.18, GIL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, GIL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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
27.28% 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.
DP27.28%
EPS Next 2Y16.79%
EPS Next 3Y17.25%
61.02
+0.59 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners87.35%
Inst Owner Change-1.14%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap9.10B
Revenue(TTM)3.34B
Net Income(TTM)486.40M
Analysts81.67
Price Target50.15 (-17.81%)
Short Float %5.67%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP27.28%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.02%
Min EPS beat(2)1.34%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)1.4%
Min EPS beat(4)-0.29%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.23%
EPS beat(12)9
Avg EPS beat(12)0.96%
EPS beat(16)13
Avg EPS beat(16)8.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)0.26%
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)0.37%
Revenue beat(12)7
Avg Revenue beat(12)-0.25%
Revenue beat(16)11
Avg Revenue beat(16)2.31%
PT rev (1m)-0.08%
PT rev (3m)16.14%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 14.86 | ||
| P/S | 2.72 | ||
| P/FCF | 29.64 | ||
| P/OCF | 20.92 | ||
| P/B | 6.39 | ||
| P/tB | 10.09 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)3.24
EY5.31%
EPS(NY)4.11
Fwd EY6.73%
FCF(TTM)2.06
FCFY3.37%
OCF(TTM)2.92
OCFY4.78%
SpS22.43
BVpS9.55
TBVpS6.05
PEG (NY)1.15
PEG (5Y)1.49
Graham Number26.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 34.18% | ||
| ROCE | 20.83% | ||
| ROIC | 17.97% | ||
| ROICexc | 18.9% | ||
| ROICexgc | 22.47% | ||
| OM | 21.5% | ||
| PM (TTM) | 14.55% | ||
| GM | 31.17% | ||
| FCFM | 9.18% |
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
ROICexgc growth 3Y1.1%
ROICexgc 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-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.43 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 92.78% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 7.66 | ||
| Cash Conversion | 50.75% | ||
| Profit Quality | 63.09% | ||
| Current Ratio | 3.87 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.41 |
F-Score6
WACC9.8%
ROIC/WACC1.83
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)14.89%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%31.08%
EPS Next Y16.37%
EPS Next 2Y16.79%
EPS Next 3Y17.25%
EPS Next 5Y15.7%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%6.53%
Revenue Next Year5.29%
Revenue Next 2Y5.4%
Revenue Next 3Y4.79%
Revenue Next 5Y19.31%
EBIT growth 1Y31.55%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year26.82%
EBIT Next 3Y12.35%
EBIT Next 5Y21.63%
FCF growth 1Y1042.73%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y68.73%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%
GILDAN ACTIVEWEAR INC / GIL FAQ
What is the ChartMill fundamental rating of GILDAN ACTIVEWEAR INC (GIL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIL.
Can you provide the valuation status for GILDAN ACTIVEWEAR INC?
ChartMill assigns a valuation rating of 5 / 10 to GILDAN ACTIVEWEAR INC (GIL). This can be considered as Fairly Valued.
Can you provide the profitability details for GILDAN ACTIVEWEAR INC?
GILDAN ACTIVEWEAR INC (GIL) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for GIL stock?
The Price/Earnings (PE) ratio for GILDAN ACTIVEWEAR INC (GIL) is 18.83 and the Price/Book (PB) ratio is 6.39.
How sustainable is the dividend of GILDAN ACTIVEWEAR INC (GIL) stock?
The dividend rating of GILDAN ACTIVEWEAR INC (GIL) is 5 / 10 and the dividend payout ratio is 27.28%.