GILDAN ACTIVEWEAR INC (GIL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIL - CA3759161035 - Common Stock
62.68 USD
-0.87 (-1.37%)
62.68 USD
0 (0%)
GIL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 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 is not valued too expensively and it also shows a decent 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 better Return On Assets (11.66%) than 93.33% of its industry peers.
GIL's Return On Equity of 31.90% is amongst the best of the industry. GIL outperforms 86.67% of its industry peers.
GIL has a Return On Invested Capital of 21.27%. This is amongst the best in the industry. GIL outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIL is significantly above the industry average of 11.62%.
The last Return On Invested Capital (21.27%) for GIL is above the 3 year average (18.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 31.9% | ||
| ROIC | 21.27% |
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 14.12%, GIL belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of GIL has grown nicely.
GIL has a better Operating Margin (21.74%) than 91.11% of its industry peers.
GIL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.85%, GIL is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
GIL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.74% | ||
| PM (TTM) | 14.12% | ||
| GM | 31.85% |
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.
The debt/assets ratio for GIL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.84 indicates that GIL is not in any danger for bankruptcy at the moment.
GIL's Altman-Z score of 4.84 is amongst the best of the industry. GIL outperforms 88.89% of its industry peers.
The Debt to FCF ratio of GIL is 5.23, which is a neutral value as it means it would take GIL, 5.23 years of fcf income to pay off all of its debts.
GIL has a Debt to FCF ratio (5.23) which is in line with its industry peers.
A Debt/Equity ratio of 0.94 indicates that GIL is somewhat dependend on debt financing.
The Debt to Equity ratio of GIL (0.94) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.03
WACC10.46%
2.3 Liquidity
A Current Ratio of 2.01 indicates that GIL has no problem at all paying its short term obligations.
With a Current ratio value of 2.01, GIL perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
GIL has a Quick Ratio of 2.01. This is a bad value and indicates that GIL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, GIL is in line with its industry, outperforming 42.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.70% 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 4.04% in the last year.
The Revenue has been growing slightly by 2.98% on average over the past years.
EPS 1Y (TTM)15.7%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.18%
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 16.88% yearly.
The Revenue is expected to grow by 19.17% on average over the next years. This is quite good.
EPS Next Y16.81%
EPS Next 2Y23.26%
EPS Next 3Y21.91%
EPS Next 5Y16.88%
Revenue Next Year6.84%
Revenue Next 2Y46.32%
Revenue Next 3Y30.77%
Revenue Next 5Y19.17%
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
A Price/Earnings ratio of 18.49 indicates a rather expensive valuation of GIL.
Based on the Price/Earnings ratio, GIL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, GIL is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.71 indicates a correct valuation of GIL.
Based on the Price/Forward Earnings ratio, GIL is valued a bit cheaper than the industry average as 71.11% of the companies are valued more expensively.
GIL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 13.71 |
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 | 32.41 | ||
| EV/EBITDA | 15.17 |
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 21.91% in the coming years.
PEG (NY)1.1
PEG (5Y)1.46
EPS Next 2Y23.26%
EPS Next 3Y21.91%
5. Dividend
5.1 Amount
GIL has a Yearly Dividend Yield of 1.46%. 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 1.52.
Compared to the average S&P500 Dividend Yield of 2.00, GIL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of GIL is nicely growing with an annual growth rate of 21.39%!
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 28.02% 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.
DP28.02%
EPS Next 2Y23.26%
EPS Next 3Y21.91%
62.68
-0.87 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.98%
Inst Owner Change8.11%
Ins Owners0.41%
Ins Owner ChangeN/A
Market Cap11.60B
Revenue(TTM)3.36B
Net Income(TTM)474.77M
Analysts78.33
Price Target50.71 (-19.1%)
Short Float %5.33%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.83
Dividend Growth(5Y)21.39%
DP28.02%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.52%
Min EPS beat(2)1.34%
Max EPS beat(2)1.71%
EPS beat(4)4
Avg EPS beat(4)1.9%
Min EPS beat(4)1.34%
Max EPS beat(4)2.69%
EPS beat(8)7
Avg EPS beat(8)3.16%
EPS beat(12)9
Avg EPS beat(12)0.72%
EPS beat(16)13
Avg EPS beat(16)6.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.28%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)6
Avg Revenue beat(12)-0.42%
Revenue beat(16)10
Avg Revenue beat(16)1.55%
PT rev (1m)2.1%
PT rev (3m)1.04%
EPS NQ rev (1m)1.88%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 13.71 | ||
| P/S | 3.45 | ||
| P/FCF | 32.41 | ||
| P/OCF | 24.18 | ||
| P/B | 7.8 | ||
| P/tB | 11.95 | ||
| EV/EBITDA | 15.17 |
EPS(TTM)3.39
EY5.41%
EPS(NY)4.57
Fwd EY7.3%
FCF(TTM)1.93
FCFY3.09%
OCF(TTM)2.59
OCFY4.14%
SpS18.16
BVpS8.04
TBVpS5.25
PEG (NY)1.1
PEG (5Y)1.46
Graham Number24.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.66% | ||
| ROE | 31.9% | ||
| ROCE | 24.66% | ||
| ROIC | 21.27% | ||
| ROICexc | 22.85% | ||
| ROICexgc | 28.11% | ||
| OM | 21.74% | ||
| PM (TTM) | 14.12% | ||
| GM | 31.85% | ||
| FCFM | 10.65% |
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
ROICexgc growth 3Y1.1%
ROICexgc 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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 5.23 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 88.28% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 55.23% | ||
| Profit Quality | 75.41% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 4.84 |
F-Score6
WACC10.46%
ROIC/WACC2.03
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)15.7%
EPS 3Y3.43%
EPS 5Y12.64%
EPS Q2Q%17.65%
EPS Next Y16.81%
EPS Next 2Y23.26%
EPS Next 3Y21.91%
EPS Next 5Y16.88%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y3.82%
Revenue growth 5Y2.98%
Sales Q2Q%2.18%
Revenue Next Year6.84%
Revenue Next 2Y46.32%
Revenue Next 3Y30.77%
Revenue Next 5Y19.17%
EBIT growth 1Y24.1%
EBIT growth 3Y7.39%
EBIT growth 5Y15.65%
EBIT Next Year29.63%
EBIT Next 3Y33.5%
EBIT Next 5Y23%
FCF growth 1Y46.7%
FCF growth 3Y-10.36%
FCF growth 5Y9.72%
OCF growth 1Y-3.42%
OCF growth 3Y-6.71%
OCF growth 5Y6.79%
GILDAN ACTIVEWEAR INC / GIL FAQ
What is the ChartMill fundamental rating of GILDAN ACTIVEWEAR INC (GIL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIL.
Can you provide the valuation status for GILDAN ACTIVEWEAR INC?
ChartMill assigns a valuation rating of 5 / 10 to GILDAN ACTIVEWEAR INC (GIL). This can be considered as Fairly Valued.
Can you provide the profitability details for GILDAN ACTIVEWEAR INC?
GILDAN ACTIVEWEAR INC (GIL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for GIL stock?
The Price/Earnings (PE) ratio for GILDAN ACTIVEWEAR INC (GIL) is 18.49 and the Price/Book (PB) ratio is 7.8.
How sustainable is the dividend of GILDAN ACTIVEWEAR INC (GIL) stock?
The dividend rating of GILDAN ACTIVEWEAR INC (GIL) is 5 / 10 and the dividend payout ratio is 28.02%.