Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: $16.92B
• Dividend Yield: 1.47%
• Average Volume (3M): 582.13K
• Price to Earnings (P/E): 23.6
• 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): 1.31
• Shares Outstanding: 185,170,150
• 10 Day Avg. Volume: 597,701
• 30 Day Avg. Volume: 582,131
• PEG Ratio: 3.05
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 20.03
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 13.32
• Enterprise Value/Ebitda: 17.27
• 1Y Price Target: $106.48
• Price Target Upside: 16.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.34
• Revenue Forecast (FY): $6.21B

• Rating: 64 Neutral
• Price Target: C$99.00 ▲(8.11% Upside)
• Action: Downgraded Date: 03/01/26
• Date: Action: Downgraded 03/01/26

The score is driven primarily by solid operating profitability and free cash flow, partially offset by increased leverage and weaker debt coverage. Technical indicators are mixed with near-term softness despite a longer-term uptrend. Valuation is somewhat demanding (P/E ~25.5) with a modest dividend, while earnings-call guidance and margin/FCF outlook are a positive support despite category and expense headwinds.

Positive Factors

Margin expansion & profitability

Sustained margin improvements and higher net profitability reflect stronger pricing, mix and cost control. Durable margin expansion enhances cash generation capacity, funds reinvestment and cushions downside, giving Gildan structural operating leverage across its manufacturing footprint.

Strong free cash flow generation

Growing free cash flow and a high FCF-to-net-income ratio improve financial flexibility to fund integration, pay down debt, sustain dividends and invest in brand initiatives. Reliable FCF is a durable foundation for executing strategic M&A while supporting capital returns.

Scale uplift from proposed HanesBrands acquisition

A large, strategic acquisition that doubles scale and targets $200M+ run-rate synergies can materially strengthen distribution, brand portfolio and manufacturing economics. Successful integration would create lasting cost advantages and broader revenue channels.

Negative Factors

Increased financial leverage

Higher leverage reduces financial flexibility and raises sensitivity to interest costs, particularly as Gildan pursues large M&A. Elevated debt levels can constrain capital allocation, increase refinancing risk and pressure credit metrics during economic or integration stress.

Decline in hosiery & underwear sales

A sizable, persistent drop in a product category suggests structural demand headwinds or competitive pressure that can weaken revenue diversification and margin mix. If prolonged, it requires product repositioning or cost takeout to prevent recurring profit erosion.

Rising SG&A and acquisition-related financial expenses

Higher operating and financing costs reduce incremental profit from sales and compress margins. Persistently elevated SG&A or acquisition-related fees can limit synergy benefits and extend the payback period on strategic transactions, stressing near-term cash flow.

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

Profitability and cash generation are solid (healthy gross/net margins and strong free cash flow growth), but the balance sheet is a major constraint: leverage increased materially (debt-to-equity ~1.37 in 2025) and cash flow covers a relatively small share of total debt (~0.26), reducing financial flexibility.

Income Statement

Revenue has grown steadily since 2023, accelerating to about 9.9% in 2025, while profitability remains solid with ~30% gross margin and ~11% net margin in 2025. Operating profitability also looks healthy (EBIT margin ~19.8% and EBITDA margin ~24.1% in 2025). Offsetting this, margins have compressed versus the 2021 peak and net income was essentially flat from 2024 to 2025 despite higher sales, indicating some cost pressure or mix headwinds. The 2020 loss remains a historical blemish, though results have since normalized.

Balance Sheet

Leverage is the key constraint: debt-to-equity rose to ~1.37 in 2025 from ~0.55 in 2023, and total debt increased sharply versus prior years. Equity has grown, but the balance sheet is meaningfully more levered than it was in 2021–2023. Return on equity is positive (~11.4% in 2025), but it is well below the ~27–32% range seen in 2021–2024, suggesting weaker efficiency/earnings power relative to the capital base and/or the impact of higher leverage and asset growth.

Cash Flow

Cash generation is a clear positive: operating cash flow and free cash flow are both solid in 2025, with free cash flow up strongly (about 31.6% growth). Free cash flow covered a large portion of earnings in 2025 (about 0.82x), supporting earnings quality. The main concern is that cash flow covered a relatively small share of total debt in 2025 (coverage ratio ~0.26), which reduces flexibility if refinancing conditions tighten or if profitability softens.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 91.57
• 50DMA: Negative
• 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 Neutral. The current price of 91.57 is below the 20-day moving average (MA) of 96.20, above the 50-day MA of 91.47, and above the 200-day MA of 79.02, indicating a neutral trend. The MACD of 0.65 indicates Positive momentum. The RSI at 41.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GIL.

Gildan Activewear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.A	77 Outperform	C$15.97B	18.88	15.16%	1.44%	7.12%	17.15%
CCL.B	73 Outperform	C$15.97B	18.88	14.88%	1.46%	7.12%	17.15%
ATZ	71 Outperform	C$14.29B	23.21	30.09%	―	26.51%	172.52%
GIL	64 Neutral	$16.92B	23.55	31.12%	1.47%	6.64%	27.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GOOS	50 Neutral	C$1.56B	3.20	3.73%	―	3.78%	-54.87%
ROOT	48 Neutral	C$142.35M	14.11	-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.