GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - New York Stock Exchange, Inc. - CA3759161035 - Common Stock - Currency: USD
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. GIL has an excellent profitability rating, but 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
In the past year GIL was profitable.
GIL had a positive operating cash flow in the past year.
GIL had positive earnings in 4 of the past 5 years.
GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIL has a Return On Assets of 10.39%. This is amongst the best in the industry. GIL outperforms 81.25% of its industry peers.
GIL's Return On Equity of 28.95% is amongst the best of the industry. GIL outperforms 85.42% of its industry peers.
GIL's Return On Invested Capital of 16.52% is amongst the best of the industry. GIL outperforms 81.25% of its industry peers.
GIL had an Average Return On Invested Capital over the past 3 years of 18.95%. This is significantly above the industry average of 11.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.95% | ||
| ROIC | 16.52% |
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
GIL has a better Profit Margin (12.38%) than 89.58% of its industry peers.
In the last couple of years the Profit Margin of GIL has grown nicely.
GIL has a better Operating Margin (19.73%) than 91.67% of its industry peers.
GIL's Operating Margin has improved in the last couple of years.
GIL has a worse Gross Margin (30.87%) than 81.25% of its industry peers.
GIL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.73% | ||
| PM (TTM) | 12.38% | ||
| GM | 30.87% |
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.
The number of shares outstanding for GIL has been reduced compared to 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.
2.2 Solvency
An Altman-Z score of 4.01 indicates that GIL is not in any danger for bankruptcy at the moment.
GIL has a better Altman-Z score (4.01) than 72.92% of its industry peers.
GIL has a debt to FCF ratio of 7.46. This is a slightly negative value and a sign of low solvency as GIL would need 7.46 years to pay back of all of its debts.
GIL's Debt to FCF ratio of 7.46 is in line compared to the rest of the industry. GIL outperforms 43.75% of its industry peers.
GIL has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
GIL's Debt to Equity ratio of 1.35 is on the low side compared to the rest of the industry. GIL is outperformed by 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.8
WACC9.2%
2.3 Liquidity
A Current Ratio of 3.91 indicates that GIL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.91, GIL belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
GIL has a Quick Ratio of 1.59. This is a normal value and indicates that GIL is financially healthy and should not expect problems in meeting its short term obligations.
GIL has a Quick ratio of 1.59. This is in the better half of the industry: GIL outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
GIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.07%, which is quite good.
The Earnings Per Share has been growing by 12.64% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.06% in the past 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)3.06%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.28%
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 10.99% yearly.
GIL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y10.99%
Revenue Next Year5.32%
Revenue Next 2Y5.23%
Revenue Next 3Y4.73%
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
The Price/Earnings ratio is 15.92, which indicates a correct valuation of GIL.
GIL's Price/Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 64.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIL to the average of the S&P500 Index (26.55), we can say GIL is valued slightly cheaper.
GIL is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
GIL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 79.17% of the companies in the same industry.
GIL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 11.91 |
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 | 28.21 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
The 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)0.9
PEG (5Y)1.26
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, GIL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.68, GIL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, GIL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
32.80% 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.
DP32.8%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
47.92
-0.9 (-1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.94%
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap7.25B
Analysts81.67
Price Target43.22 (-9.81%)
Short Float %1.52%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP32.8%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)1.85%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.29%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.15%
EPS beat(12)9
Avg EPS beat(12)1.67%
EPS beat(16)13
Avg EPS beat(16)10.37%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)1.28%
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)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)-0.07%
PT rev (3m)3.35%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)0%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)4.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 11.91 | ||
| P/S | 2.2 | ||
| P/FCF | 28.21 | ||
| P/OCF | 18.74 | ||
| P/B | 5.16 | ||
| P/tB | 8.21 | ||
| EV/EBITDA | 11.59 |
EPS(TTM)3.01
EY6.28%
EPS(NY)4.03
Fwd EY8.4%
FCF(TTM)1.7
FCFY3.54%
OCF(TTM)2.56
OCFY5.34%
SpS21.74
BVpS9.3
TBVpS5.84
PEG (NY)0.9
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.95% | ||
| ROCE | 19.14% | ||
| ROIC | 16.52% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 20.49% | ||
| OM | 19.73% | ||
| PM (TTM) | 12.38% | ||
| GM | 30.87% | ||
| FCFM | 7.82% |
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
ROICexcg growth 3Y1.1%
ROICexcg 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-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 94.7% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 49.22% | ||
| Profit Quality | 63.13% | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 4.01 |
F-Score5
WACC9.2%
ROIC/WACC1.8
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 5Y10.99%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.28%
Revenue Next Year5.32%
Revenue Next 2Y5.23%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
EBIT growth 1Y18.58%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year25.92%
EBIT Next 3Y10.86%
EBIT Next 5Y8.14%
FCF growth 1Y22874.2%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y35.38%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%