Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: C$16.38B
• Dividend Yield: 1.47%
• Average Volume (3M): 448.59K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.94
• Revenue Growth: 6.64%
• EPS Growth: 27.37%
• Country: CA
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.36
• Shares Outstanding: 185,162,120
• 10 Day Avg. Volume: 626,250
• 30 Day Avg. Volume: 448,587
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$114.01
• Price Target Upside: 28.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$103.00 ▲(16.42% Upside)

Gildan Activewear's strong financial performance and strategic acquisition of HanesBrands are key strengths, supporting a solid outlook. However, technical indicators suggest a lack of momentum, and increased leverage poses a risk that needs monitoring. The fair valuation and positive earnings call further contribute to a favorable but cautious overall score.

Positive Factors

Scale via HanesBrands acquisition

The planned HanesBrands acquisition is a structural change that should materially expand scale, distribution and product breadth. Run-rate synergies of at least $200M and integration into Gildan's manufacturing network can sustainably lower unit costs and accelerate branded growth.

Sustained gross margin expansion

Multi-year gross margin improvement reflects durable advantages: favorable product mix, pricing power, and manufacturing efficiency. Higher base gross margins strengthen long-term profitability and cash generation, cushioning margins against input cost volatility and supporting reinvestment.

Strong free cash flow growth

Healthy FCF growth and a strong FCF-to-net-income ratio indicate durable cash-generation capacity. This supports capital allocation for dividends, CapEx, and acquisitions (like HanesBrands) while providing flexibility to deleverage or fund integration costs without relying solely on external financing.

Negative Factors

Rising leverage

Elevated debt/equity raises financial risk and reduces flexibility for strategic investments. Increased borrowings have already lifted net financial expenses, and higher leverage could constrain capital allocation, raise refinancing risk, and pressure credit metrics during integration or demand softness.

Decline in hosiery & underwear sales

A 22% drop in hosiery/underwear is a structural demand warning for the branded category, hurting revenue mix and factory utilization. If persistent, it could reduce branded-margin contribution and require product, pricing or marketing adjustments to restore volume and margin stability.

Rising SG&A and financial expenses

Higher SG&A erodes operating leverage and can offset gross margin gains. Coupled with reported increases in net financial expenses tied to acquisition fees and borrowing, elevated overhead and financing costs could compress margins and cash flow until cost discipline or synergies materialize.

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 shirts under the Gildan, Gildan Performance, Gildan Hammer, Comfort Colors, American Apparel, Alstyle, and GoldToe brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks, as well as sheer pantyhose, tights, and leggings under the Gildan, Under Armour, GoldToe, PowerSox, Signature Gold by Goldtoe, Peds, MediPeds, Therapy Plus, All Pro, Secret, Silks, Secret Silky, and American Apparel brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands; and ladies' shapewear, intimates, and accessories under the Secret and Secret Silky brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.

How the Company Makes Money

Gildan Activewear generates revenue primarily through the sale of its various apparel products to wholesale customers, including screen printers, distributors, and retailers. The company operates in two main segments: Printwear and Branded Apparel. The Printwear segment is focused on selling blank apparel to promotional and screen printing markets, while the Branded Apparel segment includes products sold under its own brands as well as licensed brands. Key revenue streams consist of direct sales to customers, as well as wholesale distribution through various channels. Gildan also benefits from partnerships with major retailers and e-commerce platforms, which help to expand its market reach. Additionally, the company's commitment to sustainable practices and efficient production processes contributes to cost savings and competitive pricing, further enhancing its profitability.

Gildan Activewear Financial Statement Overview

Summary

Gildan Activewear demonstrates strong financial health with robust revenue and profit growth, efficient operations, and effective cash management. However, the increase in leverage requires careful monitoring to ensure long-term stability.

Income Statement

Gildan Activewear shows strong profitability with a consistent increase in gross profit margin from 27.5% in 2023 to 31.7% in TTM 2025. The net profit margin has improved significantly to 14.1% in TTM 2025, indicating effective cost management. Revenue growth is robust at 19.8% in TTM 2025, showcasing strong market demand. EBIT and EBITDA margins have also improved, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.26 in TTM 2025, indicating higher leverage, which could pose a risk if not managed carefully. However, return on equity is strong at 32.8%, demonstrating effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth is positive at 17.7% in TTM 2025, indicating improved cash generation. The operating cash flow to net income ratio is 0.44, which is lower than previous years, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is healthy at 75.9%, reflecting good cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.35B	3.27B	3.20B	3.24B	2.92B	1.98B
Gross Profit	1.06B	1.00B	880.05M	992.41M	940.21M	249.06M
EBITDA	835.70M	737.74M	743.03M	720.12M	777.69M	-48.51M
Net Income	473.72M	400.87M	533.58M	541.54M	607.18M	-225.28M
Balance Sheet
Total Assets	4.07B	3.72B	3.51B	3.44B	3.14B	3.02B
Cash, Cash Equivalents and Short-Term Investments	112.60M	98.80M	134.78M	198.69M	249.24M	505.26M
Total Debt	1.87B	1.65B	1.08B	1.02B	723.18M	1.08B
Total Liabilities	2.58B	2.26B	1.56B	1.56B	1.22B	1.46B
Stockholders Equity	1.49B	1.46B	1.96B	1.88B	1.92B	1.56B
Cash Flow
Free Cash Flow	362.64M	351.04M	338.60M	168.93M	487.29M	356.69M
Operating Cash Flow	481.04M	501.39M	546.61M	413.49M	617.51M	415.03M
Investing Cash Flow	-83.44M	-112.12M	-154.86M	-182.40M	-187.83M	-57.51M
Financing Cash Flow	-363.01M	-379.35M	-452.78M	-258.27M	-754.75M	83.54M

Gildan Activewear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 88.47 is below the 20-day moving average (MA) of 88.90, above the 50-day MA of 85.29, and above the 200-day MA of 75.38, indicating a neutral trend. The MACD of 1.20 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, 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
CCL.B	76 Outperform	C$14.22B	17.79	14.88%	1.46%	7.12%	17.15%
GIL	75 Outperform	C$16.38B	20.21	31.12%	1.47%	6.64%	27.37%
ATZ	75 Outperform	C$12.39B	35.40	30.09%	―	26.51%	172.52%
CCL.A	74 Outperform	C$14.22B	17.87	15.16%	1.44%	7.12%	17.15%
GOOS	66 Neutral	C$1.60B	60.16	6.07%	―	3.78%	-54.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ROOT	48 Neutral	C$121.17M	-3.94	-19.60%	―	4.87%	-1195.39%

Gildan Activewear Corporate Events

Gildan Acquires HanesBrands, Doubling Scale and Enhancing Global Presence

Gildan Activewear Inc. has completed its acquisition of HanesBrands Inc., effectively doubling its scale and creating a global apparel leader. This strategic move combines iconic brands with Gildan’s low-cost, vertically integrated platform, aiming to enhance innovation and growth. The integration is expected to deliver at least $200 million in cost synergies, positioning Gildan to better serve its customers and provide long-term value for shareholders.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$97.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.