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GIL: Share Buybacks And Index Inclusion Will Support Higher Future Profitability

GIL: Share Buyback Completion Will Support Higher Profit Margins Going Forward

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GIL
AnalystConsensusTarget
Not Invested
Published 11 Feb 2025

Update shared on 03 Dec 2025

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19.9%
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2.4%

Analysts have nudged their price target for Gildan Activewear slightly higher to reflect modestly improved long term profit margin expectations and a marginally richer future earnings multiple, despite only minor adjustments to the discount rate and revenue growth assumptions.

What's in the News

  • From June 30, 2025 to August 8, 2025, Gildan Activewear repurchased 855,000 shares for 45 million dollars, completing a total buyback of 9,978,864 shares, or 6.39 percent of shares outstanding, under its August 1, 2024 authorization (Key Developments).
  • The company reaffirmed its 2025 outlook, guiding full year revenue growth to be up mid single digits, consistent with prior expectations (Key Developments).
  • Gildan Activewear was added to the FTSE All World Index in U.S. dollar terms, which may enhance its visibility among global index and ETF investors (Key Developments).

Valuation Changes

  • The fair value estimate remains unchanged at 101.00 dollars per share, indicating no revision to the intrinsic value assessment.
  • The discount rate has risen slightly from 8.09 percent to 8.14 percent, reflecting a modestly higher required return.
  • Revenue growth has edged down marginally from 30.77 percent to 30.64 percent, suggesting a slightly more conservative top line outlook.
  • The net profit margin has improved slightly from 13.89 percent to 13.93 percent, pointing to modestly stronger long term profitability expectations.
  • The future P/E has ticked up fractionally from 12.32 times to 12.34 times, implying a marginally richer valuation multiple on projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.