GILDAN ACTIVEWEAR INC (GIL)
CA3759161035 - Common Stock
Taking everything into account, GIL scores 6 out of 10 in our fundamental rating. GIL was compared to 50 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.
GIL had positive earnings in 4 of the past 5 years.
GIL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIL has a Return On Assets of 11.29%. This is amongst the best in the industry. GIL outperforms 86.00% of its industry peers.
GIL has a Return On Equity of 26.94%. This is amongst the best in the industry. GIL outperforms 82.00% of its industry peers.
GIL's Return On Invested Capital of 15.83% is amongst the best of the industry. GIL outperforms 84.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIL is above the industry average of 11.70%.
| 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 94.00% 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 92.00% of the companies in the same industry.
GIL's Operating Margin has improved in the last couple of years.
GIL has a Gross Margin of 29.84%. This is amonst the worse of the industry: GIL underperforms 80.00% of its industry peers.
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.
Compared to 5 years ago, GIL has less shares outstanding
Compared to 1 year ago, GIL has a worse debt to assets ratio.
2.2 Solvency
GIL has an Altman-Z score of 4.19. This indicates that GIL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, GIL is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
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's Debt to FCF ratio of 4.12 is in line compared to the rest of the industry. GIL outperforms 52.00% 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 has a worse Debt to Equity ratio (0.81) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 4.19 |
ROIC/WACC2.12
WACC7.46%
2.3 Liquidity
A Current Ratio of 2.31 indicates that GIL has no problem at all paying its short term obligations.
With a Current ratio value of 2.31, GIL perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that GIL may have some problems paying its short term obligations.
The Quick ratio of GIL (0.98) is worse 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 18.62%, which is quite good.
Measured over the past 5 years, GIL shows a small growth in Earnings Per Share. The EPS has been growing by 6.68% on average per year.
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.
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 Y17.22%
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GIL is valuated correctly with a Price/Earnings ratio of 15.97.
68.00% of the companies in the same industry are more expensive than GIL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. GIL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.38 indicates a correct valuation of GIL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIL indicates a somewhat cheap valuation: GIL is cheaper than 70.00% of the companies listed in the same industry.
GIL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 13.38 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as GIL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 12.02 |
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.
The excellent profitability rating of GIL 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)0.93
PEG (5Y)2.39
EPS Next 2Y16.63%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
GIL's Dividend Yield is a higher than the industry average which is at 2.81.
Compared to the average S&P500 Dividend Yield of 2.24, GIL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 2Y16.63%
EPS Next 3Y15.48%
GILDAN ACTIVEWEAR INC
NYSE:GIL (12/20/2024, 7:17:49 PM)
After market: 46.78 0 (0%)46.78
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners69.71%
Inst Owner Change-9.47%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.22B
Analysts81.82
Price Target39.93 (-14.64%)
Short Float %1.25%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)18.02%
DP31.76%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)10.72%
PT rev (3m)13.9%
EPS NQ rev (1m)4.38%
EPS NQ rev (3m)4.38%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 13.38 | ||
| P/S | 2.24 | ||
| P/FCF | 18.79 | ||
| P/OCF | 13.63 | ||
| P/B | 4.61 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)2.93
EY6.26%
EPS(NY)3.5
Fwd EY7.47%
FCF(TTM)2.49
FCFY5.32%
OCF(TTM)3.43
OCFY7.34%
SpS20.93
BVpS10.14
TBVpS6.73
PEG (NY)0.93
PEG (5Y)2.39
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 | 4.19 |
F-Score5
WACC7.46%
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%