Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: C$15.43B
• Dividend Yield: 1.53%
• Average Volume (3M): 421.16K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.89
• Revenue Growth: 6.64%
• EPS Growth: 27.37%
• Country: CA
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.38
• Shares Outstanding: 185,162,120
• 10 Day Avg. Volume: 459,952
• 30 Day Avg. Volume: 421,162
• 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$96.81
• Price Target Upside: 16.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$92.00 ▲(10.39% 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

Strong Cash Flow Generation

Strong cash flow generation indicates robust financial health, allowing Gildan to reinvest in growth opportunities and manage debt effectively.

Strategic Expansion

The acquisition of HanesBrands is expected to enhance Gildan's market reach and operational capabilities, supporting long-term growth and competitive positioning.

Innovation and Brand Expansion

Expanding brand portfolio through innovation helps Gildan capture new market segments and drive sustained revenue growth.

Negative Factors

Rising Debt Levels

Increased leverage could strain financial flexibility and cash flow, posing a risk to long-term stability if not managed properly.

Decline in Hosiery and International Sales

Declining sales in key categories and regions may indicate challenges in market demand and competitive pressures, impacting revenue growth.

Higher SG&A and Financial Expenses

Rising expenses can erode profit margins and reduce operational efficiency, potentially affecting long-term profitability.

Gildan Activewear Business Overview & Revenue Model

Company Description

Gildan Activewear Inc. is a leading apparel manufacturer known for producing high-quality activewear, socks, and hosiery. Headquartered in Montreal, Canada, the company operates primarily in the promotional products, printwear, and branded apparel sectors. Gildan's core products include t-shirts, sweatshirts, activewear, and socks, which are sold under various brand names, including Gildan, Anvil, and Comfort Colors. The company focuses on sustainable manufacturing practices and has a global presence, serving customers in more than 60 countries.

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 profitability and cash flow metrics. The company maintains healthy margins and generates significant cash flow, despite a slight slowdown in revenue growth. However, increasing leverage could be a potential risk if not managed properly.

Income Statement

Gildan Activewear shows strong profitability with a consistent gross profit margin around 31% and a net profit margin improving to 14.5% in TTM. Revenue growth is modest but positive, indicating stability. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the revenue growth rate has slowed compared to previous years, which could be a concern for future expansion.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.39 in TTM, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity is strong at 33.3%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets.

Cash Flow

Gildan Activewear's cash flow is solid, with a free cash flow growth rate of 20% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.80, showing good cash conversion from profits. However, the free cash flow to net income ratio is slightly lower at 0.72, suggesting room for improvement in cash efficiency.

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: 83.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 83.34 is above the 20-day moving average (MA) of 80.40, above the 50-day MA of 81.77, and above the 200-day MA of 71.60, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 73.08 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
ATZ	78 Outperform	C$13.12B	45.82	26.49%	―	26.51%	172.52%
CCL.B	76 Outperform	C$14.68B	18.38	14.88%	1.53%	7.12%	17.15%
GIL	75 Outperform	C$15.43B	19.04	31.12%	1.53%	6.64%	27.37%
CCL.A	74 Outperform	C$14.68B	18.21	15.16%	1.55%	7.12%	17.15%
GOOS	66 Neutral	C$1.71B	64.24	6.07%	―	3.78%	-54.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ROOT	61 Neutral	C$123.59M	-3.98	-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.

Gildan Activewear Reports Record Q3 Revenue and Announces HanesBrands Merger

Gildan Activewear reported record third-quarter revenue of $911 million and adjusted diluted EPS of $1.00, driven by strong sales growth in activewear and effective execution of its Gildan Sustainable Growth strategy. The company announced a proposed combination with HanesBrands, expected to close by early 2026, which aims to enhance its capabilities and market reach, potentially impacting its operations and industry positioning.

Gildan Activewear Prices $1.2 Billion Notes for Hanesbrands Acquisition

Gildan Activewear Inc. has announced the pricing of a private offering of $1.2 billion in senior unsecured notes, divided into two series with maturities in 2030 and 2035. The proceeds from this offering are intended to finance the acquisition of Hanesbrands Inc., refinance Hanesbrands’ existing debt, and cover related transaction costs. This strategic move is expected to enhance Gildan’s market position by expanding its product portfolio and operational capabilities, potentially impacting stakeholders by increasing the company’s financial leverage and market reach.