GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - New York Stock Exchange, Inc. - CA3759161035 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to GIL. GIL was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. GIL has an excellent profitability rating, but there are some minor concerns on its financial health. GIL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GIL had positive earnings in the past year.
GIL had a positive operating cash flow in the past year.
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
GIL's Return On Assets of 10.39% is amongst the best of the industry. GIL outperforms 81.25% of its industry peers.
The Return On Equity of GIL (28.95%) is better 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 11.63%.
| 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
Looking at the Profit Margin, with a value of 12.38%, GIL belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Profit Margin of GIL has grown nicely.
GIL has a Operating Margin of 19.73%. This is amongst the best in the industry. GIL outperforms 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.
In the last couple of years the Gross Margin of GIL has grown nicely.
| 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.
Compared to 1 year ago, GIL has less shares outstanding
GIL has less shares outstanding than it did 5 years ago.
GIL has a worse debt/assets ratio than last year.
2.2 Solvency
GIL has an Altman-Z score of 3.97. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL's Altman-Z score of 3.97 is fine compared to the rest of the industry. GIL outperforms 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.
GIL has a Debt to FCF ratio (7.46) which is in line with its industry peers.
GIL has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.35, GIL is doing worse than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.46 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.79
WACC9.21%
2.3 Liquidity
GIL has a Current Ratio of 3.91. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
GIL has a better Current ratio (3.91) than 95.83% of its industry peers.
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.
With a decent Quick ratio value of 1.59, GIL is doing good in the industry, outperforming 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.07% over the past year.
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
GIL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.99% yearly.
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
The Price/Earnings ratio is 16.01, which indicates a correct valuation of GIL.
Compared to the rest of the industry, the Price/Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, GIL is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.97, which indicates a very decent valuation of GIL.
GIL's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIL is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIL to the average of the S&P500 Index (22.30), we can say GIL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA ratio is in line with the industry average.
GIL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.37 | ||
| EV/EBITDA | 11.4 |
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.
GIL's earnings are expected to grow with 13.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)1.27
EPS Next 2Y15.64%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, GIL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.68, GIL pays a bit more dividend than its industry peers.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of GIL is nicely growing with an annual growth rate of 21.39%!
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
32.80% of the earnings are spent on dividend by GIL. This is a low number and 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%
NYSE:GIL (6/9/2025, 1:53:11 PM)
48.19
+0.36 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.94%
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap7.29B
Analysts81.67
Price Target43.22 (-10.31%)
Short Float %1.52%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)-0.07%
PT rev (3m)3.35%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)0%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)4.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 11.97 | ||
| P/S | 2.22 | ||
| P/FCF | 28.37 | ||
| P/OCF | 18.85 | ||
| P/B | 5.18 | ||
| P/tB | 8.26 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)3.01
EY6.25%
EPS(NY)4.03
Fwd EY8.35%
FCF(TTM)1.7
FCFY3.53%
OCF(TTM)2.56
OCFY5.31%
SpS21.74
BVpS9.3
TBVpS5.84
PEG (NY)0.9
PEG (5Y)1.27
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 | 3.97 |
F-Score5
WACC9.21%
ROIC/WACC1.79
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%