GILDAN ACTIVEWEAR INC (GIL)

CA3759161035 - Common Stock

35.41  +0.25 (+0.71%)

Fundamental Rating

5

Overall GIL gets a fundamental rating of 5 out of 10. We evaluated GIL against 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.



7

1. Profitability

1.1 Basic Checks

In the past year GIL was profitable.
GIL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GIL reported negative net income in multiple years.
Of the past 5 years GIL 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of GIL (12.99%) is better than 88.00% of its industry peers.
Looking at the Return On Equity, with a value of 23.29%, GIL belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.74%, GIL belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
Industry RankSector Rank
ROA 12.99%
ROE 23.29%
ROIC 14.74%
ROA(3y)9.21%
ROA(5y)9.48%
ROE(3y)15.32%
ROE(5y)15.65%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

GIL has a better Profit Margin (14.81%) than 96.00% of its industry peers.
GIL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.97%, GIL belongs to the best 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.
GIL has a worse Gross Margin (27.12%) than 80.00% of its industry peers.
GIL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.97%
PM (TTM) 14.81%
GM 27.12%
OM growth 3Y18.52%
OM growth 5Y5.17%
PM growth 3Y22.01%
PM growth 5Y4.88%
GM growth 3Y6.13%
GM growth 5Y0.48%

5

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

GIL has an Altman-Z score of 4.69. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL's Altman-Z score of 4.69 is amongst the best of the industry. GIL outperforms 82.00% of its industry peers.
GIL has a debt to FCF ratio of 4.59. This is a neutral value as GIL would need 4.59 years to pay back of all of its debts.
GIL's Debt to FCF ratio of 4.59 is in line compared to the rest of the industry. GIL outperforms 54.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that GIL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, GIL perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.59
Altman-Z 4.69
ROIC/WACC1.84
WACC8.03%

2.3 Liquidity

A Current Ratio of 2.50 indicates that GIL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.50, GIL is in line with its industry, outperforming 54.00% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that GIL may have some problems paying its short term obligations.
GIL has a worse Quick ratio (0.93) than 66.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.5
Quick Ratio 0.93

3

3. Growth

3.1 Past

The earnings per share for GIL have decreased strongly by -23.29% in the last year.
The Earnings Per Share has been growing by 12.58% on average over the past years. This is quite good.
GIL shows a decrease in Revenue. In the last year, the revenue decreased by -5.19%.
GIL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
EPS 1Y (TTM)-23.29%
EPS 3Y23.28%
EPS 5Y12.58%
EPS growth Q2Q-11.9%
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y4.69%
Revenue growth 5Y3.33%
Revenue growth Q2Q2.34%

3.2 Future

GIL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.24% yearly.
Based on estimates for the next years, GIL will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
EPS Next Y-17.25%
EPS Next 2Y-1.56%
EPS Next 3Y2.04%
EPS Next 5Y4.24%
Revenue Next Year-3.4%
Revenue Next 2Y-0.3%
Revenue Next 3Y1.21%
Revenue Next 5Y1.47%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

GIL is valuated correctly with a Price/Earnings ratio of 14.34.
GIL's Price/Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.00. GIL is valued slightly cheaper when compared to this.
GIL is valuated reasonably with a Price/Forward Earnings ratio of 11.75.
GIL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 74.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. GIL is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.34
Fwd PE 11.75

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GIL.
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 RankSector Rank
P/FCF 24.98
EV/EBITDA 10.71

4.3 Compensation for Growth

The decent profitability rating of GIL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-1.56%
EPS Next 3Y2.04%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.22%, GIL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.73, GIL pays a bit more dividend than its industry peers.
GIL's Dividend Yield is comparable with the S&P500 average which is at 2.48.
Industry RankSector Rank
Dividend Yield 2.22%

5.2 History

The dividend of GIL is nicely growing with an annual growth rate of 18.02%!
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)18.02%
Div Incr Years3
Div Non Decr Years3

5.3 Sustainability

28.10% 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.
DP28.1%
EPS Next 2Y-1.56%
EPS Next 3Y2.04%

GILDAN ACTIVEWEAR INC

NYSE:GIL (2/22/2024, 2:07:01 PM)

35.41

+0.25 (+0.71%)

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 Cap6.10B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.22%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 14.34
Fwd PE 11.75
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)N/A
PEG (5Y)1.14
Profitability
Industry RankSector Rank
ROA 12.99%
ROE 23.29%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.97%
PM (TTM) 14.81%
GM 27.12%
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 Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.5
Quick Ratio 0.93
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)
Growth
EPS 1Y (TTM)-23.29%
EPS 3Y23.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.19%
Revenue growth 3Y4.69%
Revenue growth 5Y
Revenue growth 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