GILDAN ACTIVEWEAR INC (GIL)
CA3759161035 - Common Stock
GIL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GIL was profitable.
In the past year GIL had a positive cash flow from operations.
GIL had positive earnings in 4 of the past 5 years.
In the past 5 years GIL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.96%, GIL belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
GIL's Return On Equity of 26.68% is amongst the best of the industry. GIL outperforms 82.00% of its industry peers.
With an excellent Return On Invested Capital value of 14.84%, GIL belongs to the best of the industry, outperforming 84.00% 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 10.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 26.68% | ||
| ROIC | 14.84% |
ROA(3y)16.76%
ROA(5y)10.18%
ROE(3y)29.22%
ROE(5y)17.47%
ROIC(3y)16.52%
ROIC(5y)N/A
1.3 Margins
GIL's Profit Margin of 16.14% is amongst the best of the industry. GIL outperforms 96.00% of its industry peers.
In the last couple of years the Profit Margin of GIL has grown nicely.
GIL has a Operating Margin of 17.15%. This is amongst the best in the industry. GIL outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of GIL has grown nicely.
GIL's Gross Margin of 27.63% is on the low side compared to the rest of the industry. GIL is outperformed by 82.00% of its industry peers.
GIL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.15% | ||
| PM (TTM) | 16.14% | ||
| GM | 27.63% |
OM growth 3YN/A
OM growth 5Y1.73%
PM growth 3YN/A
PM growth 5Y6.72%
GM growth 3Y30.28%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIL is creating value.
The number of shares outstanding for GIL has been reduced compared to 1 year ago.
The number of shares outstanding for GIL has been reduced compared to 5 years ago.
The debt/assets ratio for GIL is higher compared to a year ago.
2.2 Solvency
GIL has an Altman-Z score of 4.56. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GIL (4.56) is better than 78.00% of its industry peers.
GIL has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as GIL would need 2.37 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.37, GIL perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that GIL is not too dependend on debt financing.
GIL has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 4.56 |
ROIC/WACC1.91
WACC7.78%
2.3 Liquidity
GIL has a Current Ratio of 2.38. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
GIL has a Current ratio (2.38) which is comparable to the rest of the industry.
A Quick Ratio of 0.92 indicates that GIL may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, GIL is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for GIL have decreased by -3.21% in the last year.
GIL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
The Revenue has been growing slightly by 0.64% in the past year.
Measured over the past years, GIL shows a small growth in Revenue. The Revenue has been growing by 1.90% on average per year.
EPS 1Y (TTM)-3.21%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%31.11%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%-1.01%
3.2 Future
GIL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.01% yearly.
The Revenue is expected to grow by 2.23% on average over the next years.
EPS Next Y16.42%
EPS Next 2Y13.13%
EPS Next 3Y10.75%
EPS Next 5Y7.01%
Revenue Next Year2.78%
Revenue Next 2Y3.51%
Revenue Next 3Y3.57%
Revenue Next 5Y2.23%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
GIL is valuated correctly with a Price/Earnings ratio of 14.73.
74.00% of the companies in the same industry are more expensive than GIL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.41, GIL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.14, GIL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 72.00% of the companies listed in the same industry.
GIL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIL is on the same level as its industry peers.
GIL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 11.34 |
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.
PEG (NY)0.9
PEG (5Y)2.21
EPS Next 2Y13.13%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 2.06%. 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 2.84.
GIL's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
On average, the dividend of GIL grows each year by 18.02%, 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)18.02%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
25.61% 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.
DP25.61%
EPS Next 2Y13.13%
EPS Next 3Y10.75%
GILDAN ACTIVEWEAR INC
NYSE:GIL (7/26/2024, 7:04:00 PM)
After market: 39.93 0 (0%)39.93
+0.9 (+2.31%)
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 Cap6.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 12.14 | ||
| 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)0.9
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.96% | ||
| ROE | 26.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.15% | ||
| PM (TTM) | 16.14% | ||
| GM | 27.63% | ||
| 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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.38 | ||
| Quick Ratio | 0.92 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.21%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y16.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.64%
Revenue growth 3Y17.28%
Revenue growth 5Y
Sales 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