GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
USA - NYSE:GIL - CA3759161035 - Common Stock
55.39 USD
-0.35 (-0.63%)
55.39 USD
0 (0%)
Overall GIL gets a fundamental rating of 7 out of 10. We evaluated GIL against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. GIL scores excellent on profitability, but there are some minor concerns on its financial health. GIL has a correct valuation and a medium 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.
GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIL has a better Return On Assets (11.67%) than 91.67% of its industry peers.
With an excellent Return On Equity value of 31.93%, GIL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
GIL has a better Return On Invested Capital (21.27%) than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIL is significantly above the industry average of 12.40%.
The 3 year average ROIC (18.95%) for GIL is below the current ROIC(21.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 31.93% | ||
| ROIC | 21.27% |
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's Profit Margin of 14.13% is amongst the best of the industry. GIL outperforms 93.75% of its industry peers.
GIL's Profit Margin has improved in the last couple of years.
The Operating Margin of GIL (21.74%) is better than 91.67% of its industry peers.
GIL's Operating Margin has improved in the last couple of years.
GIL has a Gross Margin of 31.85%. This is in the lower half of the industry: GIL underperforms 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 | 21.74% | ||
| PM (TTM) | 14.13% | ||
| GM | 31.85% |
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
GIL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GIL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.06 indicates that GIL is not in any danger for bankruptcy at the moment.
The Altman-Z score of GIL (4.06) is better than 77.08% of its industry peers.
The Debt to FCF ratio of GIL is 5.23, which is a neutral value as it means it would take GIL, 5.23 years of fcf income to pay off all of its debts.
GIL has a Debt to FCF ratio of 5.23. This is comparable to the rest of the industry: GIL outperforms 58.33% of its industry peers.
GIL has a Debt/Equity ratio of 0.94. This is a neutral value indicating GIL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, GIL is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 4.06 |
ROIC/WACC2.13
WACC9.97%
2.3 Liquidity
GIL has a Current Ratio of 2.01. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GIL (2.01) is better than 60.42% of its industry peers.
GIL has a Quick Ratio of 2.01. This is a bad value and indicates that GIL is not financially healthy enough and could expect problems in meeting its short term obligations.
GIL has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
GIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, 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 4.04% in the last 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)15.7%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.18%
3.2 Future
The Earnings Per Share is expected to grow by 15.70% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.31% on average over the next years. This is quite good.
EPS Next Y16.41%
EPS Next 2Y19.14%
EPS Next 3Y19.38%
EPS Next 5Y15.7%
Revenue Next Year5.29%
Revenue Next 2Y12.89%
Revenue Next 3Y17.58%
Revenue Next 5Y19.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
GIL is valuated correctly with a Price/Earnings ratio of 16.34.
GIL's Price/Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, GIL is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.96 indicates a correct valuation of GIL.
GIL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 64.58% of the companies in the same industry.
GIL is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GIL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.06 | ||
| EV/EBITDA | 11.31 |
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.
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 19.38% in the coming years.
PEG (NY)1
PEG (5Y)1.29
EPS Next 2Y19.14%
EPS Next 3Y19.38%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.60%.
GIL's Dividend Yield is a higher than the industry average which is at 3.39.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of GIL grows each year by 21.39%, which is quite nice.
GIL has paid a dividend for at least 10 years, which is 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 28.08% 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.
DP28.08%
EPS Next 2Y19.14%
EPS Next 3Y19.38%
55.39
-0.35 (-0.63%)
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-0.89%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap8.26B
Revenue(TTM)3.36B
Net Income(TTM)475.08M
Analysts78.33
Price Target49.63 (-10.4%)
Short Float %5.67%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP28.08%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.52%
Min EPS beat(2)1.34%
Max EPS beat(2)1.71%
EPS beat(4)4
Avg EPS beat(4)1.9%
Min EPS beat(4)1.34%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.16%
EPS beat(12)9
Avg EPS beat(12)0.72%
EPS beat(16)13
Avg EPS beat(16)6.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)10
Avg Revenue beat(16)1.55%
PT rev (1m)-1.02%
PT rev (3m)9.71%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 12.96 | ||
| P/S | 2.46 | ||
| P/FCF | 23.06 | ||
| P/OCF | 17.19 | ||
| P/B | 5.55 | ||
| P/tB | 8.5 | ||
| EV/EBITDA | 11.31 |
EPS(TTM)3.39
EY6.12%
EPS(NY)4.27
Fwd EY7.71%
FCF(TTM)2.4
FCFY4.34%
OCF(TTM)3.22
OCFY5.82%
SpS22.56
BVpS9.98
TBVpS6.52
PEG (NY)1
PEG (5Y)1.29
Graham Number27.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 31.93% | ||
| ROCE | 24.66% | ||
| ROIC | 21.27% | ||
| ROICexc | 22.85% | ||
| ROICexgc | 28.11% | ||
| OM | 21.74% | ||
| PM (TTM) | 14.13% | ||
| GM | 31.85% | ||
| FCFM | 10.65% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.23 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 88.5% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 8.07 | ||
| Cash Conversion | 55.27% | ||
| Profit Quality | 75.35% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.06 |
F-Score6
WACC9.97%
ROIC/WACC2.13
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)15.7%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%17.65%
EPS Next Y16.41%
EPS Next 2Y19.14%
EPS Next 3Y19.38%
EPS Next 5Y15.7%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.18%
Revenue Next Year5.29%
Revenue Next 2Y12.89%
Revenue Next 3Y17.58%
Revenue Next 5Y19.31%
EBIT growth 1Y24.11%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year26.82%
EBIT Next 3Y12.35%
EBIT Next 5Y21.63%
FCF growth 1Y46.67%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y-3.32%
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 7 / 10 to GIL.
Can you provide the valuation status for GILDAN ACTIVEWEAR INC?
ChartMill assigns a valuation rating of 6 / 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 9 / 10.
Can you provide the PE and PB ratios for GIL stock?
The Price/Earnings (PE) ratio for GILDAN ACTIVEWEAR INC (GIL) is 16.34 and the Price/Book (PB) ratio is 5.55.
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 28.08%.