Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: $12.69B
• Dividend Yield: 1.44%
• Average Volume (3M): 542.84K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.20
• Revenue Growth: 7.09%
• EPS Growth: 32.92%
• Country: CA
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.36
• Shares Outstanding: 149,062,520
• 10 Day Avg. Volume: 513,532
• 30 Day Avg. Volume: 542,841
• PEG Ratio: -1.02
• Price to Book (P/B): 5.26
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 21.82
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 12.15
• Enterprise Value/Ebitda: 16.05
• 1Y Price Target: $90.51
• Price Target Upside: 6.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: C$94.00 ▲(10.38% Upside)

Gildan Activewear's overall stock score is driven by strong earnings performance and positive technical indicators. The company's robust financial health and successful market strategies contribute significantly to the score. However, valuation concerns and international market challenges slightly temper the outlook.

Positive Factors

Revenue Growth

The consistent revenue growth, driven by strong demand and higher sales volumes, indicates a solid market position and effective sales strategies.

Operational Efficiency

Successful ramp-up of the Bangladesh facility enhances operational efficiency, supporting cost management and production capacity.

Market Position

Gaining market share in key categories strengthens Gildan's competitive position, ensuring sustained revenue streams and brand strength.

Negative Factors

International Market Challenges

Declining international sales highlight challenges in global demand, potentially impacting future growth and diversification efforts.

Hosiery and Underwear Sales Decline

Significant decline in hosiery and underwear sales suggests vulnerability in product segments, affecting overall revenue diversity.

Cash Flow Decrease

Reduced operating cash flow reflects higher working capital needs, which may strain liquidity and limit investment capacity.

Gildan Activewear Business Overview & Revenue Model

Company Description

Gildan Activewear Inc. is a leading apparel manufacturer based in Canada, specializing in the production of activewear and socks. The company operates primarily in two segments: printwear and branded apparel. Gildan produces a wide range of products, including t-shirts, sweatshirts, and hosiery, catering to both wholesale and retail markets. With a strong commitment to sustainability, Gildan emphasizes responsible manufacturing practices and environmentally-friendly processes.

How the Company Makes Money

Gildan generates revenue primarily through the sale of its products in the printwear and branded apparel sectors. The printwear segment targets screen printers and distributors, providing them with high-volume, customizable clothing options, while the branded apparel segment focuses on retail sales under various brand names. Key revenue streams include direct sales to wholesale customers, retail partnerships, and online sales. Additionally, Gildan's focus on innovation and sustainability has led to partnerships with major retailers, enhancing its market reach and driving sales growth. The company also benefits from economies of scale, allowing it to maintain competitive pricing and optimize its profit margins.

Gildan Activewear Financial Statement Overview

Summary

Gildan Activewear shows strong profitability with solid margins and a healthy net profit margin of 12.4%. The balance sheet is stable with a manageable debt-to-equity ratio, though leverage is slightly high. Cash flow remains solid despite recent declines, with a strong conversion of net income to cash.

Income Statement

Gildan Activewear has demonstrated solid revenue growth and improved profitability over the years. The TTM gross profit margin stands at 30.9%, reflecting strong control over cost of goods sold. The net profit margin for TTM is 12.4%, indicating a healthy bottom line. Revenue growth from 2024 to TTM shows an increase of 0.5%, which is modest but positive. EBIT and EBITDA margins are robust at 19.5% and 23.2%, respectively, highlighting efficient operations. Overall, the company displays significant profitability and stability, although revenue growth is relatively flat.

Balance Sheet

The balance sheet indicates a moderate level of leverage with a debt-to-equity ratio of 1.36 for TTM, which is manageable but slightly on the higher side. The equity ratio is 35.9%, suggesting reasonable financial stability but with room for improvement. The return on equity (ROE) is a solid 28.9% in TTM, showcasing effective use of shareholder funds to generate profits. Overall, the company maintains a stable financial position but should monitor its leverage.

Cash Flow

Gildan Activewear's cash flow position is strong, with a TTM free cash flow of $256.9 million. The free cash flow growth rate from 2024 to TTM is -26.8%, indicating a decline, primarily due to reduced operating cash flow and increased capital expenditure. However, the operating cash flow to net income ratio is 0.95, suggesting nearly all net income is converted into cash, which is a positive indicator of cash flow health. The free cash flow to net income ratio at 0.63 shows a decent conversion of net income to free cash flow. Overall, cash flow remains solid despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.34B	3.27B	3.20B	3.24B	2.92B	1.98B
Gross Profit	1.04B	1.00B	880.05M	992.41M	940.21M	249.06M
EBITDA	788.76M	737.74M	743.03M	720.12M	777.69M	-48.51M
Net Income	486.37M	400.87M	533.58M	541.54M	607.18M	-225.28M
Balance Sheet
Total Assets	4.00B	3.72B	3.51B	3.44B	3.14B	3.02B
Cash, Cash Equivalents and Short-Term Investments	169.22M	98.80M	134.78M	198.69M	249.24M	505.26M
Total Debt	1.98B	1.65B	1.08B	1.02B	709.10M	1.08B
Total Liabilities	2.58B	2.26B	1.56B	1.56B	1.22B	1.46B
Stockholders Equity	1.42B	1.46B	1.96B	1.88B	1.92B	1.56B
Cash Flow
Free Cash Flow	308.22M	351.04M	338.60M	168.93M	487.29M	356.69M
Operating Cash Flow	434.70M	501.39M	546.61M	413.49M	617.51M	415.03M
Investing Cash Flow	-89.53M	-112.12M	-154.86M	-182.40M	-187.83M	-57.51M
Financing Cash Flow	-349.54M	-379.35M	-452.78M	-258.27M	-754.75M	83.54M

Gildan Activewear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIL, the sentiment is Positive. The current price of 85.16 is above the 20-day moving average (MA) of 80.08, above the 50-day MA of 76.65, and above the 200-day MA of 69.54, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 72.35 is Negative, neither overbought nor oversold. The STOCH value of 83.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GIL.

Gildan Activewear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATZ	80 Outperform	$9.43B	38.43	23.27%	―	22.57%	197.68%
GIL	78 Outperform	$12.69B	19.43	29.70%	1.44%	7.09%	32.92%
CCL.A	75 Outperform	C$13.45B	17.46	15.20%	1.67%	7.90%	19.55%
WPK	74 Outperform	C$2.51B	13.10	10.79%	7.78%	4.69%	4.54%
GOOS	66 Neutral	C$1.86B	38.17	11.35%	―	2.45%	-17.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOO	54 Neutral	$6.78B	19.66	38.70%	0.93%	-13.78%	-115.58%

Gildan Activewear Corporate Events

Gildan Activewear Reports Record Q2 Revenue and Reaffirms 2025 Guidance

Gildan Activewear Inc. reported record second-quarter revenue of $919 million, a 6.5% increase from the previous year, driven by a 12% growth in activewear sales. The company also achieved a record adjusted diluted EPS of $0.97 and generated $188 million in cash flow from operations. Despite a decrease in international sales and challenges in the hosiery and underwear categories, Gildan’s strong market positioning and new product innovations contributed to its performance. The company reaffirmed its full-year 2025 guidance, emphasizing its focus on controlling what it can amidst a fluid operating environment.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.