GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - New York Stock Exchange, Inc. - CA3759161035 - Common Stock - Currency: USD
GIL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 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
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
With an excellent Return On Assets value of 10.39%, GIL belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
GIL has a better Return On Equity (28.95%) than 85.42% of its industry peers.
The Return On Invested Capital of GIL (16.52%) is better than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIL is significantly above the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.95% | ||
| ROIC | 16.52% |
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 has a better Profit Margin (12.38%) than 89.58% of its industry peers.
In the last couple of years the Profit Margin of GIL has grown nicely.
GIL has a better Operating Margin (19.73%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of GIL has grown nicely.
The Gross Margin of GIL (30.87%) is worse than 81.25% of its industry peers.
GIL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.73% | ||
| PM (TTM) | 12.38% | ||
| GM | 30.87% |
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.
GIL has less shares outstanding than it did 1 year ago.
GIL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GIL has a worse debt to assets ratio.
2.2 Solvency
GIL has an Altman-Z score of 4.08. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL has a better Altman-Z score (4.08) than 72.92% of its industry peers.
The Debt to FCF ratio of GIL is 7.46, which is on the high side as it means it would take GIL, 7.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.46, GIL is in line with its industry, outperforming 45.83% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that GIL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.35, GIL is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 4.08 |
ROIC/WACC2.17
WACC7.6%
2.3 Liquidity
A Current Ratio of 3.91 indicates that GIL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.91, GIL belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
GIL has a Quick Ratio of 1.59. This is a normal value and indicates that GIL is financially healthy and should not expect problems in meeting its short term obligations.
GIL has a Quick ratio of 1.59. This is in the better half of the industry: GIL outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
GIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.07%, 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 3.06% in the last year.
The Revenue has been growing slightly by 2.98% on average over the past years.
EPS 1Y (TTM)11.07%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%0%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.28%
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 10.99% on average per year.
Based on estimates for the next years, GIL will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y10.99%
Revenue Next Year5.32%
Revenue Next 2Y5.23%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 16.89, GIL is valued correctly.
Based on the Price/Earnings ratio, GIL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. GIL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.63, the valuation of GIL can be described as correct.
GIL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIL is cheaper than 72.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GIL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 12.63 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.93 | ||
| EV/EBITDA | 11.98 |
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.
GIL has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GIL's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)0.95
PEG (5Y)1.34
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, GIL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, GIL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 32.80% 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.
DP32.8%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
50.84
+0.69 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change-0.94%
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap7.69B
Analysts81.67
Price Target43.25 (-14.93%)
Short Float %1.38%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP32.8%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)1.85%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-0.29%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.15%
EPS beat(12)9
Avg EPS beat(12)1.67%
EPS beat(16)13
Avg EPS beat(16)10.37%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)1.28%
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)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)0%
PT rev (3m)2.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 12.63 | ||
| P/S | 2.34 | ||
| P/FCF | 29.93 | ||
| P/OCF | 19.89 | ||
| P/B | 5.47 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 11.98 |
EPS(TTM)3.01
EY5.92%
EPS(NY)4.03
Fwd EY7.92%
FCF(TTM)1.7
FCFY3.34%
OCF(TTM)2.56
OCFY5.03%
SpS21.74
BVpS9.3
TBVpS5.84
PEG (NY)0.95
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.95% | ||
| ROCE | 19.14% | ||
| ROIC | 16.52% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 20.49% | ||
| OM | 19.73% | ||
| PM (TTM) | 12.38% | ||
| GM | 30.87% | ||
| FCFM | 7.82% |
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-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 94.7% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 7.76 | ||
| Cash Conversion | 49.22% | ||
| Profit Quality | 63.13% | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 4.08 |
F-Score5
WACC7.6%
ROIC/WACC2.17
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)11.07%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%0%
EPS Next Y17.78%
EPS Next 2Y15.64%
EPS Next 3Y13.55%
EPS Next 5Y10.99%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.28%
Revenue Next Year5.32%
Revenue Next 2Y5.23%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
EBIT growth 1Y18.58%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year25.92%
EBIT Next 3Y10.86%
EBIT Next 5Y8.14%
FCF growth 1Y22874.2%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y35.38%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%