GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - CA3759161035 - Common Stock
55.7 USD
+1.49 (+2.75%)
55.7 USD
0 (0%)
Overall GIL gets a fundamental rating of 6 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 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.
GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIL has a Return On Assets of 12.15%. This is amongst the best in the industry. GIL outperforms 92.00% of its industry peers.
The Return On Equity of GIL (34.18%) is better than 94.00% of its industry peers.
GIL has a Return On Invested Capital of 17.97%. This is amongst the best in the industry. GIL outperforms 88.00% of its industry peers.
GIL had an Average Return On Invested Capital over the past 3 years of 18.95%. This is significantly above the industry average of 11.02%.
| 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
With an excellent Profit Margin value of 14.55%, GIL belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
GIL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.50%, GIL belongs to the best 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 has a worse Gross Margin (31.17%) than 78.00% 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.
The number of shares outstanding for GIL has been reduced compared to 1 year ago.
GIL has less shares outstanding than it did 5 years ago.
GIL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.20 indicates that GIL is not in any danger for bankruptcy at the moment.
GIL has a Altman-Z score of 4.20. This is in the better half of the industry: GIL outperforms 76.00% of its industry peers.
The Debt to FCF ratio of GIL is 6.43, which is on the high side as it means it would take GIL, 6.43 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.43, GIL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that GIL has dependencies on debt financing.
GIL's Debt to Equity ratio of 1.37 is on the low side compared to the rest of the industry. GIL is outperformed by 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 4.2 |
ROIC/WACC2.13
WACC8.45%
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's Current ratio of 3.87 is amongst the best of the industry. GIL outperforms 94.00% of its industry peers.
GIL has a Quick Ratio of 1.67. This is a normal value and indicates that GIL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.67, GIL belongs to the top of the industry, outperforming 82.00% 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.
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 4.12% in the last year.
The Revenue has been growing slightly by 2.98% on average over the past years.
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
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 4.78% on average over the next years.
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y15.7%
Revenue Next Year5.23%
Revenue Next 2Y5.14%
Revenue Next 3Y4.79%
Revenue Next 5Y4.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
GIL is valuated rather expensively with a Price/Earnings ratio of 17.19.
GIL's Price/Earnings is on the same level as the industry average.
GIL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.84, which 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 62.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIL to the average of the S&P500 Index (35.82), we can say GIL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA ratio is in line with the industry average.
GIL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.44 | ||
| EV/EBITDA | 11.58 |
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.
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)0.97
PEG (5Y)1.36
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, GIL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.65, GIL pays a bit more dividend than its industry peers.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
27.28% 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.
DP27.28%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
55.7
+1.49 (+2.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change3.73%
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap8.30B
Analysts81.67
Price Target50.04 (-10.16%)
Short Float %1.36%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)4.6%
PT rev (3m)4.6%
EPS NQ rev (1m)-3.73%
EPS NQ rev (3m)-2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.41%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 13.84 | ||
| P/S | 2.52 | ||
| P/FCF | 27.44 | ||
| P/OCF | 19.37 | ||
| P/B | 5.92 | ||
| P/tB | 9.34 | ||
| EV/EBITDA | 11.58 |
EPS(TTM)3.24
EY5.82%
EPS(NY)4.03
Fwd EY7.23%
FCF(TTM)2.03
FCFY3.64%
OCF(TTM)2.87
OCFY5.16%
SpS22.11
BVpS9.41
TBVpS5.96
PEG (NY)0.97
PEG (5Y)1.36
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
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-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 | 4.2 |
F-Score6
WACC8.45%
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)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 5Y15.7%
Revenue 1Y (TTM)4.12%
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 5Y4.78%
EBIT growth 1Y31.55%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year25.92%
EBIT Next 3Y10.86%
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%