Gildan Activewear Inc.
Gildan Activewear Inc. Fundamental Analysis
Gildan Activewear Inc. (GIL) shows moderate financial fundamentals with a PE ratio of 22.64, profit margin of 14.13%, and ROE of 32.90%. The company generates $3.3B in annual revenue with weak year-over-year growth of 2.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GIL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGIL demonstrates superior asset utilization.
Valuation Score
ExcellentGIL trades at attractive valuation levels.
Growth Score
WeakGIL faces weak or negative growth trends.
Financial Health Score
ModerateGIL shows balanced financial health with some risks.
Profitability Score
ModerateGIL maintains healthy but balanced margins.
Key Financial Metrics
Is GIL Expensive or Cheap?
P/E Ratio
GIL trades at 22.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GIL's PEG of -35.66 indicates potential undervaluation.
Price to Book
The market values Gildan Activewear Inc. at 7.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.96 times EBITDA. This signals the market has high growth expectations.
How Well Does GIL Make Money?
Net Profit Margin
For every $100 in sales, Gildan Activewear Inc. keeps $14.13 as profit after all expenses.
Operating Margin
Core operations generate 20.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.90 in profit for every $100 of shareholder equity.
ROA
Gildan Activewear Inc. generates $11.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gildan Activewear Inc. produces operating cash flow of $484.67M, showing steady but balanced cash generation.
Free Cash Flow
Gildan Activewear Inc. generates strong free cash flow of $367.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.47 in free cash annually.
FCF Yield
GIL converts 3.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-35.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.008
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How GIL Stacks Against Its Sector Peers
| Metric | GIL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.64 | 25.25 | Better (Cheaper) |
| ROE | 32.90% | 1170.00% | Weak |
| Net Margin | 14.13% | 742.00% | Weak |
| Debt/Equity | 1.26 | 0.77 | Weak (High Leverage) |
| Current Ratio | 2.01 | 9.19 | Strong Liquidity |
| ROA | 11.68% | -6467.00% (disorted) | Strong |
GIL outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gildan Activewear Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.13%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
93.34%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
74.02%
Industry Style: Cyclical, Growth, Discretionary
High Growth