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 50 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 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.
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
The Return On Assets of GIL (10.39%) is better than 84.00% of its industry peers.
Looking at the Return On Equity, with a value of 28.95%, GIL belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.52%, GIL belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GIL is significantly above the industry average of 11.09%.
| 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
Looking at the Profit Margin, with a value of 12.38%, 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 Profit Margin of GIL has grown nicely.
Looking at the Operating Margin, with a value of 19.73%, GIL belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GIL has grown nicely.
GIL's Gross Margin of 30.87% is on the low side compared to the rest of the industry. GIL is outperformed by 78.00% 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.
Compared to 1 year ago, GIL has less shares outstanding
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
GIL has an Altman-Z score of 4.09. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL has a Altman-Z score of 4.09. This is in the better half of the industry: GIL outperforms 76.00% 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.
With a Debt to FCF ratio value of 7.46, GIL perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that GIL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.35, GIL is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 4.09 |
ROIC/WACC2.2
WACC7.5%
2.3 Liquidity
GIL has a Current Ratio of 3.91. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
GIL has a better Current ratio (3.91) than 96.00% of its industry peers.
A Quick Ratio of 1.59 indicates that GIL should not have too much problems paying its short term obligations.
GIL has a better Quick ratio (1.59) than 76.00% 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 14.89%, which is quite good.
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.
Measured over the past years, GIL shows a small growth in Revenue. The Revenue has been growing by 2.98% on average per year.
EPS 1Y (TTM)14.89%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%31.08%
Revenue 1Y (TTM)2.34%
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 10.99% 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 5Y10.99%
Revenue Next Year5.23%
Revenue Next 2Y5.14%
Revenue Next 3Y4.79%
Revenue Next 5Y4.87%
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.
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
A Price/Earnings ratio of 15.79 indicates a correct valuation of GIL.
Based on the Price/Earnings ratio, GIL is valued a bit cheaper than 68.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIL to the average of the S&P500 Index (26.82), we can say GIL is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.71 indicates a correct valuation of GIL.
Based on the Price/Forward Earnings ratio, GIL is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
GIL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA is on the same level as the industry average.
GIL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.12 | ||
| EV/EBITDA | 12.05 |
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.
GIL has an outstanding profitability rating, which 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)0.89
PEG (5Y)1.25
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.80%.
Compared to an average industry Dividend Yield of 3.89, 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 | 1.8% |
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 32.80% 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.
DP32.8%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
51.17
+0.66 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change0.82%
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap7.74B
Analysts81.67
Price Target43.18 (-15.61%)
Short Float %1.47%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)-0.17%
PT rev (3m)-2.94%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 12.71 | ||
| P/S | 2.35 | ||
| P/FCF | 30.12 | ||
| P/OCF | 20.02 | ||
| P/B | 5.5 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)3.24
EY6.33%
EPS(NY)4.03
Fwd EY7.87%
FCF(TTM)1.7
FCFY3.32%
OCF(TTM)2.56
OCFY5%
SpS21.74
BVpS9.3
TBVpS5.84
PEG (NY)0.89
PEG (5Y)1.25
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 | 4.09 |
F-Score5
WACC7.5%
ROIC/WACC2.2
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 Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y10.99%
Revenue 1Y (TTM)2.34%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%6.53%
Revenue Next Year5.23%
Revenue Next 2Y5.14%
Revenue Next 3Y4.79%
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%