Gildan Activewear (TSE:GIL)
TSX:GIL
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Gildan Activewear
(TSX:GIL)
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Rating:61Neutral
Price Target:
C$82.00
▲(4.27% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by solid underlying profitability and cash generation, supported by upbeat 2026 guidance and higher synergy targets. These positives are tempered by materially higher leverage and limited debt-coverage metrics, while weak technical momentum (price below major moving averages with negative MACD) further drags the overall rating; valuation is neutral-to-slightly expensive with only a modest dividend yield.
Positive Factors
Vertical integration & scale
Owning yarn-to‑finished‑goods manufacturing gives durable cost control, quality consistency and supply reliability versus contract manufacturers. This structural advantage supports margin resilience, faster product mix shifts, and higher throughput economics as volumes scale across wholesale and retail channels.
Negative Factors
Elevated leverage and debt load
Markedly higher leverage reduces financial flexibility and increases refinancing and interest‑rate sensitivity. High net debt limits capital allocation options, delays buybacks until leverage hits target, and raises downside risk if margins or cash flow unexpectedly weaken during integration or macro stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & scale
Owning yarn-to‑finished‑goods manufacturing gives durable cost control, quality consistency and supply reliability versus contract manufacturers. This structural advantage supports margin resilience, faster product mix shifts, and higher throughput economics as volumes scale across wholesale and retail channels.
Read all positive factors
Gildan Activewear (GIL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$14.56B
Dividend Yield1.47%
Average Volume (3M)575.09K
Price to Earnings (P/E)23.6
Beta (1Y)1.03
Revenue Growth6.64%
EPS Growth27.37%
CountryCA
Employees50,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)1.32
Shares Outstanding185,175,220
10 Day Avg. Volume406,701
30 Day Avg. Volume575,093
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$109.89Price Target Upside39.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)4.34
Revenue Forecast (FY)C$6.21B
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
Overall the call presents a constructive and positive strategic outlook: management reported record revenues and strong adjusted profitability for FY2025, integration of the HanesBrands acquisition is ahead of plan with an increased synergy target ($250M) and clear 2026 guidance that implies strong adjusted EPS and free cash flow generation. Near-term challenges include temporary capacity tightness, channel destocking that pressures Q1 sales, elevated leverage (3.0x) and acquisition-related accounting impacts (higher SG&A, amortization and reported GAAP EPS decline). Management has plans to delever (free cash flow and potential HAA proceeds) and reiterated multi-year growth and margin objectives, leading to a net-positive forward view despite short-term execution and financial headwinds.Positive Updates
Record Revenues and Strong Full-Year Profitability
Record revenues from continuing operations of about $3.6 billion for FY2025, with a full-year adjusted operating margin of 21.5% (up 20 bps year-over-year) and adjusted diluted EPS of $3.51, up 17% YoY.
Negative Updates
Short-Term Capacity Tightness and Channel Destocking
Following closure of two Hanes textile factories and relocation of production, company is proactively reducing inventory across customer channels; management expects Q1 impact on net sales (Q1 guidance ≈ $1.15 billion) and temporary tightness as volumes are ramped in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenues and Strong Full-Year Profitability
Record revenues from continuing operations of about $3.6 billion for FY2025, with a full-year adjusted operating margin of 21.5% (up 20 bps year-over-year) and adjusted diluted EPS of $3.51, up 17% YoY.
Read all positive updates
Company Guidance
Gildan’s 2026 guidance (continuing operations, excluding HAA) calls for revenue of $6.0–$6.2 billion (off a $6.089B 2025 pro forma base), adjusted operating margin of ~20%, CapEx ≈3% of net sales, adjusted diluted EPS of $4.20–$4.40, and free cash flow above $850 million; Q1 guidance is ~ $1.15 billion in net sales with an adjusted operating margin of ~12.9% (Q1 tax rate slightly above the full‑year adjusted rate of ~19%), and no share repurchases until net debt/adjusted EBITDA reaches the midpoint of the 1.5–2.5x target; the company expects to realize ~$250 million of run‑rate synergies over 2026–2028 ($100M in 2026, $100M in 2027, ≥$50M in 2028) with one‑time restructuring costs roughly 1:1 to synergies, and notes HAA (classified as discontinued) is expected to be ~ $675M sales and ~$0.21 EPS in 2026 and that temporary inventory reductions (and tariff effects) will weigh on near‑term sales cadence.Gildan Activewear Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.68B | 3.27B | 3.20B | 3.24B | 2.92B |
| Gross Profit | 1.11B | 1.00B | 880.05M | 992.41M | 940.21M |
| EBITDA | 887.67M | 737.74M | 743.03M | 720.12M | 777.69M |
| Net Income | 405.86M | 400.87M | 533.58M | 541.54M | 607.18M |
Balance Sheet | |||||
| Total Assets | 10.45B | 3.72B | 3.51B | 3.44B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 283.94M | 98.80M | 134.78M | 198.69M | 249.24M |
| Total Debt | 4.87B | 1.65B | 1.08B | 1.02B | 723.18M |
| Total Liabilities | 6.89B | 2.26B | 1.56B | 1.56B | 1.22B |
| Stockholders Equity | 3.56B | 1.46B | 1.96B | 1.88B | 1.92B |
Cash Flow | |||||
| Free Cash Flow | 477.24M | 351.04M | 338.60M | 168.93M | 487.29M |
| Operating Cash Flow | 585.54M | 501.39M | 546.61M | 413.49M | 617.51M |
| Investing Cash Flow | -240.13M | -112.12M | -154.86M | -182.40M | -187.83M |
| Financing Cash Flow | -148.78M | -379.35M | -452.78M | -258.27M | -754.75M |
Gildan Activewear Technical Analysis
Neutral
78.64
Price Trends
86.51
Negative
85.72
Negative
80.82
Negative
Market Momentum
-1.52
Negative
49.11
Neutral
89.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GIL, the sentiment is Neutral. The current price of 78.64 is above the 20-day moving average (MA) of 78.12, below the 50-day MA of 86.51, and below the 200-day MA of 80.82, indicating a neutral trend. The MACD of -1.52 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 89.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | C$15.13B | 18.88 | 14.55% | 1.44% | 7.12% | 17.15% | |
75 Outperform | C$154.89M | 25.19 | -21.42% | ― | 4.87% | -1195.39% | |
74 Outperform | C$15.60B | 23.21 | 29.12% | ― | 26.51% | 172.52% | |
73 Outperform | C$15.13B | 18.88 | 14.55% | 1.46% | 7.12% | 17.15% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | C$14.56B | 23.55 | 20.31% | 1.47% | 6.64% | 27.37% | |
58 Neutral | C$1.53B | 3.20 | 4.23% | ― | 3.78% | -54.87% |
* Consumer Cyclical Sector Average
TSE:GIL
Gildan Activewear
78.10
22.12
39.51%
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TSE:CCL.B
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27.63%
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.