GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIL - CA3759161035 - Common Stock
58.79 USD
+0.46 (+0.79%)
58.79 USD
0 (0%)
GIL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 46 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 correct valuation and a medium growth rate.
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.
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 (11.66%) than 93.48% of its industry peers.
With an excellent Return On Equity value of 31.90%, GIL belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.27%, GIL belongs to the best of the industry, outperforming 86.96% 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 11.99%.
The last Return On Invested Capital (21.27%) for GIL is above the 3 year average (18.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 31.9% | ||
| 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
Looking at the Profit Margin, with a value of 14.12%, GIL belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
In the last couple of years the Profit Margin of GIL has grown nicely.
Looking at the Operating Margin, with a value of 21.74%, GIL belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
GIL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.85%, GIL is doing worse than 78.26% of the companies in the same industry.
GIL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.74% | ||
| PM (TTM) | 14.12% | ||
| 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.
The number of shares outstanding for GIL has been reduced compared to 1 year ago.
Compared to 5 years ago, GIL has less shares outstanding
GIL has a worse debt/assets ratio than last year.
2.2 Solvency
GIL has an Altman-Z score of 4.16. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL has a Altman-Z score of 4.16. This is in the better half of the industry: GIL outperforms 76.09% 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 (5.23) which is in line with its industry peers.
A Debt/Equity ratio of 0.94 indicates that GIL is somewhat dependend on debt financing.
GIL has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: GIL underperforms 71.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 4.16 |
ROIC/WACC2.08
WACC10.23%
2.3 Liquidity
A Current Ratio of 2.01 indicates that GIL has no problem at all paying its short term obligations.
With a Current ratio value of 2.01, GIL perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.88, GIL is in line with its industry, outperforming 43.48% of the companies in the same 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.
The Earnings Per Share has been growing by 12.64% on average over the past years. This is quite good.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
The Revenue has been growing slightly by 2.98% on average over the past years.
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
Based on estimates for the next years, GIL will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.88% on average per year.
GIL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.17% yearly.
EPS Next Y16.41%
EPS Next 2Y19.14%
EPS Next 3Y19.38%
EPS Next 5Y16.88%
Revenue Next Year5.29%
Revenue Next 2Y12.89%
Revenue Next 3Y17.58%
Revenue Next 5Y19.17%
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
A Price/Earnings ratio of 17.34 indicates a rather expensive valuation of GIL.
65.22% of the companies in the same industry are more expensive than GIL, based on the Price/Earnings ratio.
GIL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
With a Price/Forward Earnings ratio of 13.76, GIL is valued correctly.
Based on the Price/Forward Earnings ratio, GIL is valued a bit cheaper than 69.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. GIL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA is on the same level as the industry average.
63.04% of the companies in the same industry are more expensive than GIL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.48 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as GIL's earnings are expected to grow with 19.38% in the coming years.
PEG (NY)1.06
PEG (5Y)1.37
EPS Next 2Y19.14%
EPS Next 3Y19.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, GIL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, 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 | 1.56% |
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 28.02% of its income as dividend. This is a sustainable payout ratio.
GIL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.02%
EPS Next 2Y19.14%
EPS Next 3Y19.38%
58.79
+0.46 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners87.35%
Inst Owner Change8.1%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap8.76B
Revenue(TTM)3.36B
Net Income(TTM)474.77M
Analysts78.33
Price Target49.67 (-15.51%)
Short Float %5.94%
Short Ratio5.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP28.02%
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)0.07%
PT rev (3m)-0.74%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 13.76 | ||
| P/S | 2.61 | ||
| P/FCF | 24.48 | ||
| P/OCF | 18.26 | ||
| P/B | 5.89 | ||
| P/tB | 9.02 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)3.39
EY5.77%
EPS(NY)4.27
Fwd EY7.27%
FCF(TTM)2.4
FCFY4.09%
OCF(TTM)3.22
OCFY5.48%
SpS22.56
BVpS9.98
TBVpS6.52
PEG (NY)1.06
PEG (5Y)1.37
Graham Number27.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 31.9% | ||
| ROCE | 24.66% | ||
| ROIC | 21.27% | ||
| ROICexc | 22.85% | ||
| ROICexgc | 28.11% | ||
| OM | 21.74% | ||
| PM (TTM) | 14.12% | ||
| 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 | 88.28% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 55.23% | ||
| Profit Quality | 75.41% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.16 |
F-Score6
WACC10.23%
ROIC/WACC2.08
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 5Y16.88%
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 5Y19.17%
EBIT growth 1Y24.1%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year26.82%
EBIT Next 3Y12.35%
EBIT Next 5Y23%
FCF growth 1Y46.7%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y-3.42%
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 17.34 and the Price/Book (PB) ratio is 5.89.
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 28.02%.