GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
USA - NYSE:GIL - CA3759161035 - Common Stock
61.26 USD
+0.24 (+0.39%)
61.26 USD
0 (0%)
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. 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
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
Looking at the Return On Assets, with a value of 12.15%, GIL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 34.18%, GIL belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
GIL's Return On Invested Capital of 17.97% is amongst the best of the industry. GIL outperforms 85.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIL is significantly above the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 34.18% | ||
| ROIC | 17.97% |
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 14.55%, GIL belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
GIL's Profit Margin has improved in the last couple of years.
GIL's Operating Margin of 21.50% is amongst the best of the industry. GIL outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of GIL has grown nicely.
GIL's Gross Margin of 31.17% is on the low side compared to the rest of the industry. GIL is outperformed by 77.08% of its industry peers.
In the last couple of years the Gross Margin of GIL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.5% | ||
| PM (TTM) | 14.55% | ||
| GM | 31.17% |
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.
Compared to 1 year ago, GIL has less shares outstanding
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 4.41 indicates that GIL is not in any danger for bankruptcy at the moment.
GIL has a Altman-Z score of 4.41. This is in the better half of the industry: GIL outperforms 77.08% of its industry peers.
GIL has a debt to FCF ratio of 6.43. This is a slightly negative value and a sign of low solvency as GIL would need 6.43 years to pay back of all of its debts.
GIL has a Debt to FCF ratio (6.43) which is in line with its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that GIL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.37, GIL is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.83
WACC9.8%
2.3 Liquidity
GIL has a Current Ratio of 3.87. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
GIL has a better Current ratio (3.87) than 95.83% of its industry peers.
A Quick Ratio of 1.67 indicates that GIL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.67, GIL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.87 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.89% over the past year.
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.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 4.12% 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)4.12%
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 15.70% on average per year.
Based on estimates for the next years, GIL will show a quite strong growth in Revenue. The Revenue will grow by 19.31% on average per year.
EPS Next Y16.37%
EPS Next 2Y16.79%
EPS Next 3Y17.25%
EPS Next 5Y15.7%
Revenue Next Year5.29%
Revenue Next 2Y5.4%
Revenue Next 3Y4.79%
Revenue Next 5Y19.31%
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 accelerating.
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
Based on the Price/Earnings ratio of 18.91, the valuation of GIL can be described as rather expensive.
GIL's Price/Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 60.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIL to the average of the S&P500 Index (27.08), we can say GIL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.92, the valuation of GIL can be described as correct.
64.58% of the companies in the same industry are more expensive than GIL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, GIL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 14.92 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.75 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
GIL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GIL may justify a higher PE ratio.
GIL's earnings are expected to grow with 17.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)1.5
EPS Next 2Y16.79%
EPS Next 3Y17.25%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
GIL's Dividend Yield is a higher than the industry average which is at 3.18.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of GIL is nicely growing with an annual growth rate of 21.39%!
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 27.28% 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.
DP27.28%
EPS Next 2Y16.79%
EPS Next 3Y17.25%
61.26
+0.24 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners87.35%
Inst Owner Change-1.14%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap9.13B
Revenue(TTM)3.34B
Net Income(TTM)486.40M
Analysts81.67
Price Target50.15 (-18.14%)
Short Float %5.67%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP27.28%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.02%
Min EPS beat(2)1.34%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)1.4%
Min EPS beat(4)-0.29%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.23%
EPS beat(12)9
Avg EPS beat(12)0.96%
EPS beat(16)13
Avg EPS beat(16)8.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)0.26%
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)0.37%
Revenue beat(12)7
Avg Revenue beat(12)-0.25%
Revenue beat(16)11
Avg Revenue beat(16)2.31%
PT rev (1m)-0.08%
PT rev (3m)16.14%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.91 | ||
| Fwd PE | 14.92 | ||
| P/S | 2.73 | ||
| P/FCF | 29.75 | ||
| P/OCF | 21.01 | ||
| P/B | 6.42 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)3.24
EY5.29%
EPS(NY)4.11
Fwd EY6.7%
FCF(TTM)2.06
FCFY3.36%
OCF(TTM)2.92
OCFY4.76%
SpS22.43
BVpS9.55
TBVpS6.05
PEG (NY)1.15
PEG (5Y)1.5
Graham Number26.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.15% | ||
| ROE | 34.18% | ||
| ROCE | 20.83% | ||
| ROIC | 17.97% | ||
| ROICexc | 18.9% | ||
| ROICexgc | 22.47% | ||
| OM | 21.5% | ||
| PM (TTM) | 14.55% | ||
| GM | 31.17% | ||
| FCFM | 9.18% |
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
ROICexgc growth 3Y1.1%
ROICexgc 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-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.43 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 92.78% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 7.66 | ||
| Cash Conversion | 50.75% | ||
| Profit Quality | 63.09% | ||
| Current Ratio | 3.87 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.41 |
F-Score6
WACC9.8%
ROIC/WACC1.83
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 Y16.37%
EPS Next 2Y16.79%
EPS Next 3Y17.25%
EPS Next 5Y15.7%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%6.53%
Revenue Next Year5.29%
Revenue Next 2Y5.4%
Revenue Next 3Y4.79%
Revenue Next 5Y19.31%
EBIT growth 1Y31.55%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year26.82%
EBIT Next 3Y12.35%
EBIT Next 5Y21.63%
FCF growth 1Y1042.73%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y68.73%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%
GILDAN ACTIVEWEAR INC / GIL FAQ
What is the ChartMill fundamental rating of GILDAN ACTIVEWEAR INC (GIL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIL.
Can you provide the valuation status for GILDAN ACTIVEWEAR INC?
ChartMill assigns a valuation rating of 5 / 10 to GILDAN ACTIVEWEAR INC (GIL). This can be considered as Fairly Valued.
Can you provide the profitability details for GILDAN ACTIVEWEAR INC?
GILDAN ACTIVEWEAR INC (GIL) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for GIL stock?
The Price/Earnings (PE) ratio for GILDAN ACTIVEWEAR INC (GIL) is 18.91 and the Price/Book (PB) ratio is 6.42.
How sustainable is the dividend of GILDAN ACTIVEWEAR INC (GIL) stock?
The dividend rating of GILDAN ACTIVEWEAR INC (GIL) is 5 / 10 and the dividend payout ratio is 27.28%.