GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - New York Stock Exchange, Inc. - CA3759161035 - Common Stock - Currency: USD
GIL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. While GIL belongs to the best of the industry regarding profitability, 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
In the past year GIL was profitable.
GIL had a positive operating cash flow in the past year.
Of the past 5 years GIL 4 years were profitable.
GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIL's Return On Assets of 10.39% is amongst the best of the industry. GIL outperforms 81.25% of its industry peers.
The Return On Equity of GIL (28.95%) is better than 85.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.52%, GIL belongs to the top of the industry, outperforming 81.25% 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 11.61%.
| 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 Profit Margin of 12.38%. This is amongst the best in the industry. GIL outperforms 89.58% of its industry peers.
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 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of GIL has grown nicely.
GIL has a Gross Margin of 30.87%. This is amonst the worse of the industry: GIL underperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIL is creating value.
GIL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GIL has been reduced compared to 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 3.97. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL has a better Altman-Z score (3.97) than 72.92% of its industry peers.
The Debt to FCF ratio of GIL is 7.46, which is on the high side as it means it would take GIL, 7.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GIL (7.46) is comparable to the rest of the industry.
GIL has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GIL (1.35) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.8
WACC9.19%
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's Current ratio of 3.91 is amongst the best of the industry. GIL outperforms 95.83% 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's Quick ratio of 1.59 is fine compared to the rest 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.
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.
GIL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
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)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
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.
Based on estimates for the next years, GIL will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.56, which indicates a correct valuation of GIL.
Compared to the rest of the industry, the Price/Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 64.58% of the companies listed in the same industry.
GIL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
GIL is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. GIL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 11.64 |
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 | 27.57 | ||
| EV/EBITDA | 11.41 |
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.
A more expensive valuation may be justified as GIL's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)0.87
PEG (5Y)1.23
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.70%.
GIL's Dividend Yield is a higher than the industry average which is at 3.72.
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
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%
NYSE:GIL (6/13/2025, 2:53:42 PM)
46.84
-1 (-2.09%)
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 Cap7.08B
Analysts81.67
Price Target43.22 (-7.73%)
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 | 15.56 | ||
| Fwd PE | 11.64 | ||
| P/S | 2.15 | ||
| P/FCF | 27.57 | ||
| P/OCF | 18.32 | ||
| P/B | 5.04 | ||
| P/tB | 8.03 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)3.01
EY6.43%
EPS(NY)4.03
Fwd EY8.59%
FCF(TTM)1.7
FCFY3.63%
OCF(TTM)2.56
OCFY5.46%
SpS21.74
BVpS9.3
TBVpS5.84
PEG (NY)0.87
PEG (5Y)1.23
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 | 3.97 |
F-Score5
WACC9.19%
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%