Gildan Activewear (GIL) AI Stock Analysis

• Market Cap: $11.30B
• Dividend Yield: 1.62%
• Average Volume (3M): 432.24K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.16
• Revenue Growth: 7.09%
• EPS Growth: 32.92%
• Country: CA
• Employees: 50,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.34
• Shares Outstanding: 149,062,520
• 10 Day Avg. Volume: 611,872
• 30 Day Avg. Volume: 432,240
• 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: 1.12
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 12.48
• Enterprise Value/Ebitda: 16.61
• 1Y Price Target: $88.76
• Price Target Upside: 17.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 81 Outperform
• Price Target: C$90.00 ▲(18.69% Upside)

Gildan Activewear's strong earnings performance and bullish technical indicators are the primary drivers of its high score. The company's profitability and operational efficiency are significant strengths, although moderate valuation and international market challenges slightly temper the outlook.

Positive Factors

Acquisition and Expansion

The acquisition of HanesBrands creates a global basics apparel leader, combining Gildan's leading activewear position with HanesBrands' leading position in U.S. innerwear.

Competitive Positioning

Gildan continues to gain share in the North American imprintables channel, demonstrating growth in areas like Fashion Basics and Fleece, while the industry remains flat to up.

Sales Growth

Activewear sales increased by 10.9% year-over-year, driven by higher North American activewear point-of-sale and National Accounts.

Negative Factors

License Phase-out

Hosiery & underwear sales decreased by 18.1% year-over-year, mainly due to the phase-out of the Under Armour socks license.

Market Maturity

The retail underwear category is mature, reflected in HanesBrands' modest growth profile.

Sales Decline

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.

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 generates revenue primarily through the sale of its products in the printwear and branded apparel sectors. The printwear segment targets screen printers and distributors, providing them with high-volume, customizable clothing options, while the branded apparel segment focuses on retail sales under various brand names. Key revenue streams include direct sales to wholesale customers, retail partnerships, and online sales. Additionally, Gildan's focus on innovation and sustainability has led to partnerships with major retailers, enhancing its market reach and driving sales growth. The company also benefits from economies of scale, allowing it to maintain competitive pricing and optimize its profit margins.

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: 75.83
• 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 75.83 is above the 20-day moving average (MA) of 73.60, above the 50-day MA of 70.32, and above the 200-day MA of 67.89, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 53.50 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	81 Outperform	$11.30B	17.30	29.70%	1.62%	7.09%	32.92%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
DOOO	―	$4.16B	18.62	26.57%	1.07%	―	―
CCL.A	78 Outperform	C$14.23B	18.63	15.20%	1.46%	7.90%	19.55%
WPK	71 Outperform	C$2.56B	13.42	10.79%	7.70%	4.69%	4.54%
GOOS	―	$1.18B	36.45	11.35%	―	―	―
ATZAF	―	$5.45B	38.82	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.