GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
NYSE:GIL - New York Stock Exchange, Inc. - CA3759161035 - Common Stock
GIL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 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
In the past year GIL was profitable.
GIL had a positive operating cash flow in the past year.
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 (11.29%) than 85.71% of its industry peers.
The Return On Equity of GIL (26.94%) is better than 81.63% of its industry peers.
GIL has a better Return On Invested Capital (15.83%) than 83.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIL is significantly above the industry average of 11.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.29% | ||
| ROE | 26.94% | ||
| ROIC | 15.83% |
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 has a Profit Margin of 13.05%. This is amongst the best in the industry. GIL outperforms 93.88% of its industry peers.
GIL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.05%, GIL belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
GIL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.84%, GIL is not doing good in the industry: 79.59% of the companies in the same industry are doing better.
GIL's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 4.31. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
GIL has a better Altman-Z score (4.31) than 79.59% of its industry peers.
GIL has a debt to FCF ratio of 4.12. This is a neutral value as GIL would need 4.12 years to pay back of all of its debts.
GIL has a Debt to FCF ratio (4.12) which is in line with 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.
The Debt to Equity ratio of GIL (0.81) is worse than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 4.31 |
ROIC/WACC2.12
WACC7.47%
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.
GIL's Current ratio of 2.31 is fine compared to the rest of the industry. GIL outperforms 61.22% of its industry peers.
A Quick Ratio of 0.98 indicates that GIL may have some problems paying its short term obligations.
GIL has a Quick ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.62% over the past year.
GIL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
Looking at the last year, GIL shows a small growth in Revenue. The Revenue has grown by 3.15% in the last 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)18.62%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%14.86%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%2.44%
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 12.52% on average per year.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y17.22%
EPS Next 2Y16.63%
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
With a Price/Earnings ratio of 17.41, GIL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 67.35% of the companies listed in the same industry.
GIL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 14.59, the valuation of GIL can be described as correct.
Based on the Price/Forward Earnings ratio, GIL is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
GIL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GIL.
GIL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.49 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
GIL's 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 15.48% in the coming years.
PEG (NY)1.01
PEG (5Y)2.61
EPS Next 2Y16.63%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.84, GIL pays a bit more dividend than its industry peers.
GIL's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
The dividend of GIL is nicely growing with an annual growth rate of 18.02%!
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 Years4
Div Non Decr Years4
5.3 Sustainability
GIL pays out 31.76% 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.
DP31.76%
EPS Next 2Y16.63%
EPS Next 3Y15.48%
GILDAN ACTIVEWEAR INC
NYSE:GIL (1/21/2025, 8:04:00 PM)
After market: 51.02 0 (0%)51.02
+1.27 (+2.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners88.5%
Inst Owner Change-0.09%
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap7.88B
Analysts81.82
Price Target39 (-23.56%)
Short Float %1.01%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-2.34%
PT rev (3m)11.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.38%
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 14.59 | ||
| P/S | 2.44 | ||
| P/FCF | 20.49 | ||
| P/OCF | 14.87 | ||
| P/B | 5.03 | ||
| P/tB | 7.58 | ||
| EV/EBITDA | 12.66 |
EPS(TTM)2.93
EY5.74%
EPS(NY)3.5
Fwd EY6.85%
FCF(TTM)2.49
FCFY4.88%
OCF(TTM)3.43
OCFY6.73%
SpS20.93
BVpS10.14
TBVpS6.73
PEG (NY)1.01
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.29% | ||
| ROE | 26.94% | ||
| ROCE | 20.04% | ||
| ROIC | 15.83% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 20.36% | ||
| 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)16.52%
ROIC(5y)N/A
ROICexc(3y)17.8%
ROICexc(5y)N/A
ROICexgc(3y)22.63%
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 | 4.31 |
F-Score5
WACC7.47%
ROIC/WACC2.12
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)18.62%
EPS 3YN/A
EPS 5Y6.68%
EPS Q2Q%14.86%
EPS Next Y17.22%
EPS Next 2Y16.63%
EPS Next 3Y15.48%
EPS Next 5Y12.52%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y17.28%
Revenue growth 5Y1.9%
Sales Q2Q%2.44%
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%