Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: $11.93B
• Dividend Yield: 1.59%
• Average Volume (3M): 608.96K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.21
• Revenue Growth: 6.64%
• EPS Growth: 27.37%
• Country: CA
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.40
• Shares Outstanding: 149,074,300
• 10 Day Avg. Volume: 415,684
• 30 Day Avg. Volume: 608,964
• 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: 1.21
• Enterprise Value/Revenue: 4.32
• Enterprise Value/Gross Profit: 13.86
• Enterprise Value/Ebitda: 17.62
• 1Y Price Target: $98.67
• Price Target Upside: 23.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$97.00 ▲(21.57% Upside)

Gildan Activewear's overall stock score is driven by strong earnings performance and positive technical indicators. The company's strategic initiatives, including the proposed acquisition of HanesBrands, support future growth prospects. However, the valuation is moderate, and increasing leverage poses a potential risk.

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	3.34B	3.27B	3.20B	3.24B	2.92B	1.98B
Gross Profit	1.04B	1.00B	880.05M	992.41M	940.21M	249.06M
EBITDA	819.55M	737.74M	743.03M	720.12M	777.69M	-48.51M
Net Income	486.37M	400.87M	533.58M	541.54M	607.18M	-225.28M
Balance Sheet
Total Assets	4.00B	3.72B	3.51B	3.44B	3.14B	3.02B
Cash, Cash Equivalents and Short-Term Investments	169.22M	98.80M	134.78M	198.69M	249.24M	505.26M
Total Debt	1.98B	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	1.42B	1.46B	1.96B	1.88B	1.92B	1.56B
Cash Flow
Free Cash Flow	308.22M	351.04M	338.60M	168.93M	487.29M	356.69M
Operating Cash Flow	434.70M	501.39M	546.61M	413.49M	617.51M	415.03M
Investing Cash Flow	-89.53M	-112.12M	-154.86M	-182.40M	-187.83M	-57.51M
Financing Cash Flow	-349.54M	-379.35M	-452.78M	-258.27M	-754.75M	83.54M

Gildan Activewear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.79
• 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 Positive. The current price of 79.79 is below the 20-day moving average (MA) of 80.58, below the 50-day MA of 80.93, and above the 200-day MA of 71.07, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.86 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	79 Outperform	$12.21B	42.65	26.49%	―	26.51%	172.52%
GIL	77 Outperform	$11.93B	18.28	31.12%	1.59%	6.64%	27.37%
CCL.A	76 Outperform	C$13.54B	17.41	15.16%	1.53%	7.12%	17.15%
WPK	75 Outperform	C$2.52B	13.28	10.45%	7.33%	3.19%	-0.26%
GOOS	65 Neutral	$1.72B	64.35	6.07%	―	3.78%	-54.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOO	54 Neutral	$6.61B	―	38.70%	0.95%	-13.78%	-115.58%

Gildan Activewear Corporate Events

Gildan Activewear Reports Record Q3 Revenue and EPS

Gildan Activewear Inc., a leading player in the apparel industry, specializes in manufacturing and selling activewear, hosiery, and underwear, leveraging a vertically integrated business model to maintain cost efficiency.

Gildan Activewear Q3 2025 Earnings Call Highlights

Gildan Activewear’s Q3 2025 earnings call revealed a generally positive sentiment, underscored by strong financial performance. The company reported record earnings per share (EPS), robust Activewear sales, and significant improvements in gross margin. Despite these achievements, challenges were noted in declining hosiery and international sales, alongside increased selling, general, and administrative (SG&A) and financial expenses. The company’s strategic focus on innovation and the proposed acquisition of HanesBrands were highlighted as promising drivers for future growth.

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.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$95.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear Announces Indenture Agreement for Debt Securities Issuance

On October 7, 2025, Gildan Activewear Inc. entered into an indenture agreement with U.S. Bank Trust Company, National Association, as Trustee, to issue debt securities in an unlimited principal amount. This strategic move is expected to enhance Gildan’s financial flexibility and strengthen its position in the apparel industry by providing additional capital resources for growth and operational initiatives.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$73.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

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.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear Announces Acquisition of HanesBrands

On August 13, 2025, Gildan Activewear Inc. announced a definitive merger agreement to acquire HanesBrands Inc. The transaction involves a series of mergers and conversions, ultimately making HanesBrands a wholly owned subsidiary of Gildan. The agreement outlines the conversion of HanesBrands’ stock and equity awards into Gildan shares and cash, with specific conditions to be met for the transaction’s completion. If successful, HanesBrands’ stock will be delisted from the NYSE, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$90.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear to Acquire HanesBrands, Forming Global Apparel Leader

On August 13, 2025, Gildan Activewear Inc. announced a definitive merger agreement to acquire HanesBrands Inc., creating a global leader in basic apparel. The transaction, valued at approximately $2.2 billion in equity and $4.4 billion in enterprise value, is expected to double Gildan’s revenues and enhance its market positioning. The merger aims to realize $200 million in annual cost synergies within three years and is anticipated to be immediately accretive to Gildan’s adjusted diluted EPS. The combined entity will benefit from expanded scale, enhanced product diversification, and strengthened go-to-market capabilities, with HanesBrands shareholders owning approximately 19.9% of Gildan shares. The merger has been unanimously approved by both companies’ boards and awaits HanesBrands shareholder approval and regulatory clearances.

The most recent analyst rating on (TSE:GIL) stock is a Buy with a C$64.00 price target. To see the full list of analyst forecasts on Gildan Activewear stock, see the TSE:GIL Stock Forecast page.

Gildan Activewear Shines in Earnings Call

Gildan Activewear’s recent earnings call conveyed a generally positive sentiment, highlighting significant achievements in sales growth, earnings per share (EPS), and market share expansion. Despite facing some challenges in international markets and specific product categories, the company’s robust financial performance and strategic initiatives indicate confidence in sustained growth.

Gildan Activewear Reports Record Revenue and EPS

Gildan Activewear Inc., a leading manufacturer in the apparel industry, is known for its vertically integrated business model and commitment to sustainability. The company recently reported record second-quarter revenue and adjusted diluted EPS, with net sales reaching $919 million, a 6.5% increase from the previous year. Key financial highlights include an operating margin of 21.7% and a record adjusted diluted EPS of $0.97. The company’s Activewear segment showed strong growth, while international sales and the Hosiery and Underwear category faced declines. Gildan’s gross profit improved due to lower raw material costs and favorable pricing, although SG&A expenses increased due to higher administrative costs. Looking ahead, Gildan reaffirms its full-year guidance for 2025, focusing on operational agility and leveraging its competitive positioning to navigate a dynamic market environment.

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.