Gildan Activewear (TSE:GIL)
NYSE:GIL
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Gildan Activewear
(NYSE:GIL)
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Rating:58Neutral
Price Target:
C$87.00
▲(6.05% Upside)
Action:Reiterated
Date:05/02/26
The score is held back primarily by elevated leverage and weaker/negative recent cash-flow dynamics, despite solid revenue growth and maintained full-year guidance with synergy-driven improvement targets. Technical signals are mixed and valuation support is limited due to a negative P/E and only a modest dividend yield.
Positive Factors
Vertical integration and low-cost manufacturing
Gildan’s end-to-end manufacturing (yarn to finished goods) creates a durable cost and supply advantage. Owning key inputs and factories reduces per-unit costs, improves quality control and shortens lead times, supporting stable gross margins and resilience to supply disruptions over the coming months.
Negative Factors
Elevated leverage
Leverage at roughly 3.3x and a materially higher debt-to-equity ratio significantly reduce financial flexibility. Elevated debt raises interest expense and refinancing risk, constraining investment, buybacks and downside protection until management meaningfully cuts net debt toward target ranges.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration and low-cost manufacturing
Gildan’s end-to-end manufacturing (yarn to finished goods) creates a durable cost and supply advantage. Owning key inputs and factories reduces per-unit costs, improves quality control and shortens lead times, supporting stable gross margins and resilience to supply disruptions over the coming months.
Read all positive factors
Gildan Activewear (GIL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$14.39B
Dividend Yield1.47%
Average Volume (3M)491.65K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth23.06%
EPS Growth-33.83%
CountryCA
Employees50,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)1.72
Shares Outstanding185,175,220
10 Day Avg. Volume491,862
30 Day Avg. Volume491,653
Financial Highlights & Ratios
PEG Ratio3.05
Price to Book (P/B)2.69
Price to Sales (P/S)2.60
P/FCF Ratio20.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$109.44Price Target Upside33.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)4.3
Revenue Forecast (FY)C$6.14B
Gildan Activewear Business Overview & Revenue Model
Company Description
Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports s...
How the Company Makes Money
Gildan primarily makes money by manufacturing and selling high-volume basic apparel products at scale, leveraging vertical integration (yarn-spinning, fabric production, cutting/sewing, and finishing in its own facilities) to manage costs, quality...
Gildan Activewear Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call balanced strong commercial and integration momentum with short‑term financial and cash‑flow pressures. Positive operational items include record Q1 sales (+63.8% YoY), clear progress on Hanes integration, adjusted gross margin expansion on an adjusted basis, market share gains across key categories and maintained full‑year guidance (revenue $6.0–$6.2B; adj. operating margin ≈20%; adj. EPS guidance +20%–25% YoY). Offsetting these positives were lower adjusted EPS in the quarter (‑27.1% YoY), compressed adjusted operating margin in Q1, materially higher SG&A and purchase‑accounting impacts, negative operating/free cash flow in the quarter, and elevated leverage (3.3x). Management emphasized contingency planning for geopolitical risk and confidence in achieving synergy targets, but the near‑term profitability and cash‑flow impacts from the acquisition and inventory actions temper the outlook.Positive Updates
Record Q1 Sales
Reported record first-quarter net sales from continuing operations of $1.17 billion, up 63.8% year‑over‑year and in line with guidance (~$1.15 billion).
Negative Updates
Q1 Adjusted EPS Decline
Adjusted diluted earnings per share from continuing operations were $0.43, down 27.1% from $0.59 in the prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Sales
Reported record first-quarter net sales from continuing operations of $1.17 billion, up 63.8% year‑over‑year and in line with guidance (~$1.15 billion).
Read all positive updates
Company Guidance
Gildan maintained 2026 guidance of $6.0–$6.2 billion in revenue, adjusted operating margin of ~20%, CapEx of ~3% of net sales, adjusted diluted EPS of $4.20–$4.40 (up ~20–25% y/y) and free cash flow in excess of $850 million. For Q2 they expect net sales of ~$1.6 billion and an adjusted operating margin of ~19.7% (with the company saying adjusted gross margin/Q1 was 33% and adjusted SG&A/Q1 was 18.7%), reflecting a planned sequential margin improvement from Q1 (Q1 adjusted operating income $167 million and adjusted operating margin 14.3%; Q1 adjusted diluted EPS $0.43 versus GAAP diluted loss per share from continuing operations of $0.30). They finished Q1 with $1.17 billion in continuing‑operations sales (up 63.8% y/y), used $279 million in operating cash flow and ~$30 million of CapEx (consuming about $310 million of free cash flow), had net debt of $4.868 billion (3.3x leverage on trailing pro forma adj. EBITDA) and reiterated targets to achieve roughly $250 million of run‑rate synergies over three years (including ~$100 million in 2026), return leverage to a 1.5–2.5x range (target ~2x before resuming buybacks), and drive working capital below 30% by year‑end.Gildan Activewear Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
45
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.06B | 3.68B | 3.27B | 3.20B | 3.24B | 2.92B |
| Gross Profit | 1.15B | 1.11B | 1.00B | 880.05M | 992.41M | 940.21M |
| EBITDA | 822.81M | 887.67M | 737.74M | 743.03M | 720.12M | 777.69M |
| Net Income | 248.99M | 405.86M | 400.87M | 533.58M | 541.54M | 607.18M |
Balance Sheet | ||||||
| Total Assets | 10.48B | 10.45B | 3.72B | 3.51B | 3.44B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 237.22M | 283.94M | 98.80M | 134.78M | 198.69M | 249.24M |
| Total Debt | 5.02B | 4.87B | 1.65B | 1.08B | 1.02B | 723.18M |
| Total Liabilities | 7.07B | 6.89B | 2.26B | 1.56B | 1.56B | 1.22B |
| Stockholders Equity | 3.41B | 3.56B | 1.46B | 1.96B | 1.88B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 335.56M | 477.24M | 351.04M | 338.60M | 168.93M | 487.29M |
| Operating Cash Flow | 448.09M | 585.54M | 501.39M | 546.61M | 413.49M | 617.51M |
| Investing Cash Flow | -244.76M | -240.13M | -112.12M | -154.86M | -182.40M | -187.83M |
| Financing Cash Flow | -27.34M | -148.78M | -379.35M | -452.78M | -258.27M | -754.75M |
Gildan Activewear Technical Analysis
Negative
82.04
Price Trends
79.73
Negative
85.45
Negative
82.13
Negative
Market Momentum
-0.64
Positive
44.12
Neutral
11.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIL, the sentiment is Negative. The current price of 82.04 is above the 20-day moving average (MA) of 80.47, above the 50-day MA of 79.73, and below the 200-day MA of 82.13, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 11.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GIL.
Gildan Activewear Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$152.08M | 2.06 | 3.16% | ― | 5.61% | ― | |
75 Outperform | C$15.99B | 36.39 | 30.33% | ― | 35.21% | 80.50% | |
71 Outperform | C$14.95B | 18.41 | 14.41% | 1.46% | 4.34% | -4.98% | |
70 Outperform | C$14.95B | 18.41 | 14.41% | 1.44% | 4.34% | -4.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | C$14.39B | ― | 10.09% | 1.47% | 23.06% | -33.83% | |
53 Neutral | C$1.28B | 65.91 | 4.29% | ― | 13.14% | -76.53% |
* Consumer Cyclical Sector Average
TSE:GIL
Gildan Activewear
75.17
6.16
8.93%
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TSE:ATZ
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TSE:CCL.B
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.