GILDAN ACTIVEWEAR INC (GIL.CA) Stock Fundamental Analysis
TSX:GIL - Toronto Stock Exchange - CA3759161035 - Common Stock - Currency: CAD
Taking everything into account, GIL scores 5 out of 10 in our fundamental rating. GIL was compared to 5 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 decent growth rate and is not valued too expensively.
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.
The reported net income has been mixed in the past 5 years: GIL reported negative net income in multiple years.
GIL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of GIL (11.29%) is better than 100.00% of its industry peers.
GIL's Return On Equity of 26.94% is amongst the best of the industry. GIL outperforms 100.00% of its industry peers.
GIL's Return On Invested Capital of 14.43% is amongst the best of the industry. GIL outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIL is above the industry average of 10.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.29% | ||
| ROE | 26.94% | ||
| ROIC | 14.43% |
ROA(3y)16.76%
ROA(5y)10.18%
ROE(3y)29.22%
ROE(5y)17.47%
ROIC(3y)15.06%
ROIC(5y)N/A
1.3 Margins
GIL has a better Profit Margin (13.05%) than 100.00% of its industry peers.
GIL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.05%, GIL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GIL has grown nicely.
GIL has a Gross Margin (29.84%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GIL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.05% | ||
| PM (TTM) | 13.05% | ||
| GM | 29.84% |
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
GIL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for GIL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.54 indicates that GIL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.54, GIL is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of GIL is 4.12, which is a neutral value as it means it would take GIL, 4.12 years of fcf income to pay off all of its debts.
GIL has a Debt to FCF ratio of 4.12. This is in the lower half of the industry: GIL underperforms 60.00% of its industry peers.
GIL has a Debt/Equity ratio of 0.81. This is a neutral value indicating GIL is somewhat dependend on debt financing.
GIL's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. GIL outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.66
WACC8.71%
2.3 Liquidity
GIL has a Current Ratio of 2.31. This indicates that GIL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GIL (2.31) is comparable to the rest of the industry.
GIL has a Quick Ratio of 2.31. This is a bad value and indicates that GIL is not financially healthy enough and could expect problems in meeting its short term obligations.
GIL has a worse Quick ratio (0.98) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
GIL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.12%, which is quite good.
GIL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
GIL shows a decrease in Revenue. In the last year, the revenue decreased by -1.38%.
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)17.12%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%10.67%
Revenue 1Y (TTM)-1.38%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%4.96%
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 12.52% yearly.
Based on estimates for the next years, GIL will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y17.18%
EPS Next 2Y16.67%
EPS Next 3Y15.48%
EPS Next 5Y12.52%
Revenue Next Year2.62%
Revenue Next 2Y3.61%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 18.00, which indicates a rather expensive current valuation of GIL.
Based on the Price/Earnings ratio, GIL is valued a bit cheaper than 80.00% of the companies in the same industry.
GIL is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
GIL is valuated correctly with a Price/Forward Earnings ratio of 15.50.
Based on the Price/Forward Earnings ratio, GIL is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. GIL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
GIL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GIL is cheaper than 80.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIL indicates a slightly more expensive valuation: GIL is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 13.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GIL has a very decent profitability rating, which may justify a higher PE ratio.
GIL's earnings are expected to grow with 15.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)2.69
EPS Next 2Y16.67%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, GIL has a reasonable but not impressive dividend return.
GIL's Dividend Yield is rather good when compared to the industry average which is at 1.42. GIL pays more dividend than 100.00% of the companies in the same industry.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of GIL grows each year by 18.02%, 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)18.02%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
GIL pays out 31.76% of its income as dividend. This is a sustainable payout ratio.
The dividend of GIL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.76%
EPS Next 2Y16.67%
EPS Next 3Y15.48%
TSX:GIL (2/21/2025, 7:00:00 PM)
77.04
-1.05 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap11.90B
Analysts81.82
Price Target56.63 (-26.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend0.67
Dividend Growth(5Y)18.02%
DP31.76%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.78%
Min EPS beat(2)-0.29%
Max EPS beat(2)1.84%
EPS beat(4)3
Avg EPS beat(4)4.43%
Min EPS beat(4)-0.29%
Max EPS beat(4)14.18%
EPS beat(8)5
Avg EPS beat(8)0.13%
EPS beat(12)9
Avg EPS beat(12)7.41%
EPS beat(16)13
Avg EPS beat(16)26.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)0.18%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)1.37%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)8
Avg Revenue beat(12)2.14%
Revenue beat(16)12
Avg Revenue beat(16)4.78%
PT rev (1m)0.79%
PT rev (3m)13.44%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)4.16%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 15.5 | ||
| P/S | 2.59 | ||
| P/FCF | 21.77 | ||
| P/OCF | 15.8 | ||
| P/B | 5.35 | ||
| P/tB | 8.06 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)4.28
EY5.56%
EPS(NY)4.97
Fwd EY6.45%
FCF(TTM)3.54
FCFY4.59%
OCF(TTM)4.88
OCFY6.33%
SpS29.74
BVpS14.41
TBVpS9.56
PEG (NY)1.05
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.29% | ||
| ROE | 26.94% | ||
| ROCE | 20.04% | ||
| ROIC | 14.43% | ||
| ROICexc | 15.06% | ||
| ROICexgc | 18.56% | ||
| OM | 18.05% | ||
| PM (TTM) | 13.05% | ||
| GM | 29.84% | ||
| FCFM | 11.9% |
ROA(3y)16.76%
ROA(5y)10.18%
ROE(3y)29.22%
ROE(5y)17.47%
ROIC(3y)15.06%
ROIC(5y)N/A
ROICexc(3y)16.23%
ROICexc(5y)N/A
ROICexgc(3y)20.62%
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y1.92%
ROICexc growth 3YN/A
ROICexc growth 5Y3%
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%
F-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.12 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 107.15% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 7.56 | ||
| Cash Conversion | 73.69% | ||
| Profit Quality | 91.15% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.54 |
F-Score5
WACC8.71%
ROIC/WACC1.66
Cap/Depr(3y)154.31%
Cap/Depr(5y)118.39%
Cap/Sales(3y)6.17%
Cap/Sales(5y)5.28%
Profit Quality(3y)58.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.12%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%10.67%
EPS Next Y17.18%
EPS Next 2Y16.67%
EPS Next 3Y15.48%
EPS Next 5Y12.52%
Revenue 1Y (TTM)-1.38%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%4.96%
Revenue Next Year2.62%
Revenue Next 2Y3.61%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
EBIT growth 1Y9.73%
EBIT growth 3YN/A
EBIT growth 5Y3.67%
EBIT Next Year52.98%
EBIT Next 3Y19.83%
EBIT Next 5Y12.43%
FCF growth 1Y118.94%
FCF growth 3Y-1.72%
FCF growth 5Y-3.91%
OCF growth 1Y40.14%
OCF growth 3Y9.62%
OCF growth 5Y0.3%