GILDAN ACTIVEWEAR INC (GIL)
CA3759161035 - Common Stock
Overall GIL gets a fundamental rating of 5 out of 10. We evaluated GIL against 51 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 decent growth rate and is not valued too expensively.
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.
1.2 Ratios
GIL's Return On Assets of 11.17% is amongst the best of the industry. GIL outperforms 84.00% of its industry peers.
The Return On Equity of GIL (22.55%) is better than 80.00% of its industry peers.
GIL has a better Return On Invested Capital (14.69%) than 84.00% of its industry peers.
GIL had an Average Return On Invested Capital over the past 3 years of 16.52%. This is above the industry average of 12.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 22.55% | ||
| ROIC | 14.69% |
ROA(3y)16.76%
ROA(5y)10.18%
ROE(3y)29.22%
ROE(5y)17.47%
ROIC(3y)16.52%
ROIC(5y)N/A
1.3 Margins
GIL has a Profit Margin of 13.01%. This is amongst the best in the industry. GIL outperforms 94.00% of its industry peers.
GIL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.02%, GIL belongs to the top of the industry, outperforming 90.00% 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 28.84%, GIL is doing worse than 82.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 13.01% | ||
| GM | 28.84% |
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%
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
Compared to 5 years ago, GIL has less shares outstanding
The debt/assets ratio for GIL is higher compared to a year ago.
2.2 Solvency
GIL has an Altman-Z score of 4.61. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.61, GIL is doing good in the industry, outperforming 78.00% of the companies in the same industry.
The Debt to FCF ratio of GIL is 2.67, which is a good value as it means it would take GIL, 2.67 years of fcf income to pay off all of its debts.
GIL has a Debt to FCF ratio of 2.67. This is comparable to the rest of the industry: GIL outperforms 54.00% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that GIL is somewhat dependend on debt financing.
GIL has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.92
WACC7.65%
2.3 Liquidity
A Current Ratio of 2.35 indicates that GIL has no problem at all paying its short term obligations.
GIL has a Current ratio (2.35) which is in line with its industry peers.
GIL has a Quick Ratio of 2.35. This is a bad value and indicates that GIL is not financially healthy enough and could expect problems in meeting its short term obligations.
GIL has a Quick ratio of 0.97. This is in the lower half of the industry: GIL underperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.73% over the past year.
GIL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
The Revenue has been growing slightly by 3.12% in the past 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)9.73%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%17.46%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%2.59%
3.2 Future
GIL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.01% yearly.
The Revenue is expected to grow by 2.23% on average over the next years.
EPS Next Y16.91%
EPS Next 2Y14.45%
EPS Next 3Y10.42%
EPS Next 5Y7.01%
Revenue Next Year2.68%
Revenue Next 2Y3.48%
Revenue Next 3Y3.62%
Revenue Next 5Y2.23%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.16, the valuation of GIL can be described as correct.
Based on the Price/Earnings ratio, GIL is valued a bit cheaper than 68.00% of the companies in the same industry.
GIL is valuated rather cheaply when we compare the Price/Earnings ratio to 30.71, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.54 indicates a correct valuation of GIL.
GIL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.09. GIL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as GIL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 12.66 |
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 decent profitability rating of GIL may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)2.42
EPS Next 2Y14.45%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, GIL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.97, GIL pays a bit more dividend than its industry peers.
GIL's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of GIL is nicely growing with an annual growth rate of 18.02%!
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)18.02%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
GIL pays out 32.02% 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.
DP32.02%
EPS Next 2Y14.45%
EPS Next 3Y10.42%
GILDAN ACTIVEWEAR INC
NYSE:GIL (9/16/2024, 8:15:00 PM)
After market: 45.58 0 (0%)45.58
+0.58 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 13.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.96
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 22.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.02% | ||
| PM (TTM) | 13.01% | ||
| GM | 28.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.35 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.73%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y16.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.12%
Revenue growth 3Y17.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y