Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: $10.81B
• Dividend Yield: 1.68%
• Average Volume (3M): 328.95K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.16
• Revenue Growth: 7.09%
• EPS Growth: 32.92%
• Country: CA
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.34
• Shares Outstanding: 149,314,380
• 10 Day Avg. Volume: 353,615
• 30 Day Avg. Volume: 328,948
• 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: 1.17
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 12.48
• Enterprise Value/Ebitda: 16.61
• 1Y Price Target: $83.36
• Price Target Upside: 16.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 80 Outperform
• Price Target: C$80.00 ▲(11.33% Upside)

Gildan Activewear's strong earnings performance, solid financial metrics, and strategic market positioning drive a positive overall score. While technical indicators and valuation are supportive, the earnings call provides the most significant positive impact. Challenges remain in international markets and certain product categories but are outweighed by the company's strengths.

Positive Factors

Market Share Gains

Gildan is well-positioned to leverage its low-cost manufacturing position to aggressively pursue share gains.

Positive Sales Growth

Activewear sales increased by 9.3% year-over-year, driven by favorable mix in North America and market share gains.

Strategic Sourcing Benefits

Gildan's use of U.S. origin cotton and yarn allows for significant tariff savings, highlighting the company's strategic sourcing benefits.

Negative Factors

Decline in Hosiery and Underwear Sales

Hosiery and underwear sales decreased by 38.0% year-over-year, mainly due to the phase-out of the Under Armour socks license and market weakness.

Stock Market Saturation

Gildan Activewear is considered one of the more crowded stocks, which may limit the potential for its shares to rise significantly despite positive guidance.

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 makes money primarily through the manufacturing and wholesale distribution of its apparel products. The company's revenue model is centered on the sale of blank apparel items in large volumes to wholesalers, who then sell to screen printers and embellishers for customization. This business-to-business model allows Gildan to maintain a strong presence in the imprintables sector. Additionally, Gildan generates revenue through retail channels under its own brand names and through private label arrangements with major retailers. The company's vertically integrated production process, which includes ownership of yarn-spinning, textile manufacturing, and garment assembly facilities, enables cost efficiency and helps maintain competitive pricing. Strategic partnerships and licensing agreements also contribute to Gildan's revenue streams, enhancing its market reach and brand portfolio.

Gildan Activewear Financial Statement Overview

Summary

Gildan Activewear demonstrates strong profitability metrics with robust EBIT and EBITDA margins and a solid net profit margin. The balance sheet shows moderate leverage but effective use of equity. Cash flow is healthy despite recent declines. Overall, the company is financially stable with strengths in profitability.

Income Statement

Gildan Activewear has demonstrated solid revenue growth and improved profitability over the years. The TTM gross profit margin stands at 30.9%, reflecting strong control over cost of goods sold. The net profit margin for TTM is 12.4%, indicating a healthy bottom line. Revenue growth from 2024 to TTM shows an increase of 0.5%, which is modest but positive. EBIT and EBITDA margins are robust at 19.5% and 23.2%, respectively, highlighting efficient operations. Overall, the company displays significant profitability and stability, although revenue growth is relatively flat.

Balance Sheet

The balance sheet indicates a moderate level of leverage with a debt-to-equity ratio of 1.36 for TTM, which is manageable but slightly on the higher side. The equity ratio is 35.9%, suggesting reasonable financial stability but with room for improvement. The return on equity (ROE) is a solid 28.9% in TTM, showcasing effective use of shareholder funds to generate profits. Overall, the company maintains a stable financial position but should monitor its leverage.

Cash Flow

Gildan Activewear's cash flow position is strong, with a TTM free cash flow of $256.9 million. The free cash flow growth rate from 2024 to TTM is -26.8%, indicating a decline, primarily due to reduced operating cash flow and increased capital expenditure. However, the operating cash flow to net income ratio is 0.95, suggesting nearly all net income is converted into cash, which is a positive indicator of cash flow health. The free cash flow to net income ratio at 0.63 shows a decent conversion of net income to free cash flow. Overall, cash flow remains solid despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.27B	3.20B	3.24B	2.92B	1.98B
Gross Profit	1.01B	1.00B	880.05M	992.41M	940.21M	249.06M
EBITDA	762.28M	737.74M	743.03M	720.12M	777.69M	-48.51M
Net Income	406.88M	400.87M	533.58M	541.54M	607.18M	-225.28M
Balance Sheet
Total Assets	3.92B	3.72B	3.51B	3.44B	3.14B	3.02B
Cash, Cash Equivalents and Short-Term Investments	75.50M	98.80M	134.78M	150.42M	179.25M	505.26M
Total Debt	1.92B	1.65B	1.08B	1.02B	709.10M	1.08B
Total Liabilities	2.51B	2.26B	1.56B	1.56B	1.22B	1.46B
Stockholders Equity	1.41B	1.46B	1.96B	1.88B	1.92B	1.56B
Cash Flow
Free Cash Flow	256.85M	351.04M	338.60M	168.93M	487.29M	356.69M
Operating Cash Flow	386.55M	501.39M	546.61M	413.49M	617.51M	415.03M
Investing Cash Flow	-91.52M	-112.12M	-154.86M	-182.40M	-187.83M	-57.51M
Financing Cash Flow	-310.18M	-379.35M	-452.78M	-258.27M	-754.75M	83.54M

Gildan Activewear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.86
• 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 71.86 is above the 20-day moving average (MA) of 71.10, above the 50-day MA of 68.02, and above the 200-day MA of 67.62, indicating a bullish trend. The MACD of 1.06 indicates Positive momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.74 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
GIL	80 Outperform	$10.81B	16.51	29.70%	1.68%	7.09%	32.92%
Sector *	61 Neutral	$16.55B	10.17	-9.03%	3.33%	1.46%	-22.85%
DOOO	―	$3.73B	18.62	26.57%	1.19%	―	―
CCL.A	77 Outperform	C$13.63B	16.40	16.68%	1.53%	9.80%	60.44%
WPK	68 Neutral	C$2.57B	13.30	10.79%	7.60%	4.69%	4.54%
GOOS	―	$1.10B	34.26	11.35%	―	―	―
ATZAF	―	$5.05B	36.07	23.27%	―	―	―

Gildan Activewear Corporate Events

Gildan Activewear Reports Record Q2 Revenue and Reaffirms 2025 Guidance

Gildan Activewear Inc. reported record second-quarter revenue of $919 million, a 6.5% increase from the previous year, driven by a 12% growth in activewear sales. The company also achieved a record adjusted diluted EPS of $0.97 and generated $188 million in cash flow from operations. Despite a decrease in international sales and challenges in the hosiery and underwear categories, Gildan’s strong market positioning and new product innovations contributed to its performance. The company reaffirmed its full-year 2025 guidance, emphasizing its focus on controlling what it can amidst a fluid operating environment.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.