TSX:GIL

Stock Analysis Report

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Executive Summary

Gildan Activewear Inc. manufactures and sells a range of apparel products in North America, Europe, the Asia-Pacific, and Latin America.


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Gildan Activewear's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GIL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

GIL

4.7%

CA Luxury

2.3%

CA Market


1 Year Return

-58.7%

GIL

-44.8%

CA Luxury

-12.4%

CA Market

Return vs Industry: GIL underperformed the Canadian Luxury industry which returned -44.7% over the past year.

Return vs Market: GIL underperformed the Canadian Market which returned -12.4% over the past year.


Shareholder returns

GILIndustryMarket
7 Day6.4%4.7%2.3%
30 Day-12.7%-10.0%-2.9%
90 Day7.8%16.0%12.2%
1 Year-58.0%-58.7%-44.3%-44.8%-9.4%-12.4%
3 Year-44.6%-47.1%-18.0%-20.3%4.2%-5.7%
5 Year-47.0%-50.5%27.5%19.1%22.1%3.8%

Price Volatility Vs. Market

How volatile is Gildan Activewear's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gildan Activewear undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIL (CA$21.03) is trading below our estimate of fair value (CA$40.55)

Significantly Below Fair Value: GIL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GIL is poor value based on its PE Ratio (22.7x) compared to the Luxury industry average (19.6x).

PE vs Market: GIL is poor value based on its PE Ratio (22.7x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: GIL is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GIL is good value based on its PB Ratio (1.9x) compared to the CA Luxury industry average (5.7x).


Next Steps

Future Growth

How is Gildan Activewear forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

96.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIL's forecast earnings growth (96.9% per year) is above the savings rate (1.7%).

Earnings vs Market: GIL's earnings (96.9% per year) are forecast to grow faster than the Canadian market (23.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GIL's revenue (13.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: GIL's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GIL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gildan Activewear performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIL has a large one-off loss of $208.7M impacting its March 29 2005 financial results.

Growing Profit Margin: GIL's current net profit margins (5.2%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: GIL's earnings have declined by -2% per year over the past 5 years.

Accelerating Growth: GIL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GIL had negative earnings growth (-55%) over the past year, making it difficult to compare to the Luxury industry average (-10.6%).


Return on Equity

High ROE: GIL's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Gildan Activewear's financial position?


Financial Position Analysis

Short Term Liabilities: GIL's short term assets ($2.1B) exceed its short term liabilities ($389.1M).

Long Term Liabilities: GIL's short term assets ($2.1B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: GIL's debt to equity ratio (97.2%) is considered high.

Reducing Debt: GIL's debt to equity ratio has increased from 31.5% to 97.2% over the past 5 years.

Debt Coverage: GIL's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: GIL's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Gildan Activewear current dividend yield, its reliability and sustainability?

1.93%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GIL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GIL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GIL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GIL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GIL is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GIL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.5yrs

Average management tenure


CEO

Glenn Chamandy (59yo)

15.92yrs

Tenure

US$7,134,904

Compensation

Mr. Glenn J. Chamandy is Founder/Founding Entrepreneur of Gildan Activewear Inc. and has been its Chief Executive Officer and President since August 2004. Mr. Chamandy has been involved in various textile  ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD7.13M) is above average for companies of similar size in the Canadian market ($USD3.24M).

Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Chamandy
Founder15.92yrsUS$7.13m1.62% $67.7m
Rhodri Harries
Executive VP4.92yrsUS$2.05m0.017% $724.5k
Michael Hoffman
President of Sales2.42yrsUS$2.32m0.032% $1.3m
Benito Masi
President of Manufacturing15.5yrsUS$2.10m0.087% $3.6m
Chuck Ward
Senior Vice President of Yarn Spinningno dataUS$623.82k0.022% $897.5k
Sophie Argiriou
Vice President of Investor Communicationsno datano datano data
Lindsay Matthews
VP, General Counsel & Corporate Secretaryno datano datano data
Lise Cloutier
Vice President of Corporate Human Resourcesno datano datano data
Peter Iliopoulos
Senior Vice President of Public & Corporate Affairs18yrsno data0.0033% $136.3k

15.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: GIL's management team is seasoned and experienced (15.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Chamandy
Founder15.92yrsUS$7.13m1.62% $67.7m
William Anderson
Independent Director14.17yrsUS$239.50k0.015% $631.1k
Charles Herington
Independent Director2.17yrsUS$204.00k0.0026% $109.2k
Donald Berg
Independent Chairman1.17yrsUS$293.26k0.0015% $62.9k
Maryse Bertrand
Independent Director2.17yrsUS$210.62k0.0013% $52.5k
Marcello Caira
Independent Director2.17yrsUS$204.00k0.00079% $32.9k
Russell Goodman
Independent Director9.58yrsUS$224.00k0.0073% $305.1k
Craig Leavitt
Independent Director2.17yrsUS$204.00kno data
Anne Martin-Vachon
Independent Director5.42yrsUS$201.00k0.0010% $42.1k
Shirley Cunningham
Independent Director3.42yrsUS$217.24kno data

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: GIL's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gildan Activewear Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gildan Activewear Inc.
  • Ticker: GIL
  • Exchange: TSX
  • Founded: 1984
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: CA$4.168b
  • Shares outstanding: 198.21m
  • Website: https://www.gildan.com

Number of Employees


Location

  • Gildan Activewear Inc.
  • 600 de Maisonneuve Boulevard West
  • 33rd Floor
  • Montreal
  • Quebec
  • H3A 3J2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GILTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1998
GILNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1998
VGADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1998

Biography

Gildan Activewear Inc. manufactures and sells a range of apparel products in North America, Europe, the Asia-Pacific, and Latin America. The company manufactures and markets active wear products, including T-shirts, fleece tops and bottoms, and sport shirts under Gildan, Gildan Performance, Gildan Platinum, Gildan Hammer, Comfort Colors, American Apparel, Anvil by Gildan, Alstyle, Prim + Preux, and Gold Toe brands. It also offers hosiery products, such as athletic, dress, casual, workwear, liner, and therapeutic socks, as well as sheer panty hose, tights, and leggings under the Gildan, Gildan Platinum, Under Armour, Gold Toe, PowerSox, GT a Gold Toe Brand, Silver Toe, Signature Gold by Goldtoe, Peds, MediPeds, Kushyfoot, Therapy Plus, All Pro, Secret, Silks, Secret Silky, and American Apparel brand names. In addition, the company provides men's and boys' top and bottom underwear, and ladies panties under Gildan and Gildan Platinum brand names; and ladies shapewear, intimates, and accessories under Secret and Secret Silky brand names. It offers its products through wholesale distributors, screen printers/embellishers, and retailers, as well as through its e-commerce platforms. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was incorporated in 1984 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:49
End of Day Share Price2020/07/03 00:00
Earnings2020/03/29
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.