The Company in a Nutshell
- GIL dominates the printwear business with high capacity and low-cost productions.
- The company operates a portfolio of well-known brands.
- Unfortunately, GIL faces many headwinds.
- We do not cover Gildan at the moment.
Date Reviewed | N/A |
Company Name | Gildan Activewear Inc |
Symbol | GIL.TO |
Sector | Consumer Discretionary |
Industry | Apparel Manufacturing |
Beta | 1.646 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
Gildan Activewear Inc. is a vertically integrated manufacturer of everyday basic apparel, including activewear, underwear, and hosiery products. The Company’s primary product categories include activewear tops and bottoms (activewear), socks (hosiery), and underwear tops and bottoms (underwear). Its activewear product lines include T-shirts, fleece tops and bottoms, sports shirts, polos and tank tops. Its hosiery product lines include athletic, dress, casual and workwear socks, liner socks and socks for therapeutic purposes. Its underwear product lines include men's and boy's underwear (tops and bottoms) and ladies’ panties. The Company markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands, including Gildan, American Apparel, Comfort Colors, Gildan Hammer, GoldToe, and Peds. Its manufacturing operations are situated in the United States, Central America, the Caribbean, and Bangladesh.
Current price | 62.8 |
ROE | 27.80 % |
ROIC | 18.85 % |
Shareholder Yield | 0.05 % |
5-Yr Total Return | 43.90 % |
1-Yr Total Return | 71.10 % |
Next Earnings Date | 10-31-24 |
Latest Quarter Information
What the CEO said:
As of 2024, Gildan is embarking on its third year of implementing its Next Generation ESG strategy, which encompasses a broad range of initiatives. These include reducing carbon footprint and water intensity, fostering a circular economy, supporting regional economic development, ensuring respect for human rights, and maintaining safety standards throughout the supply chain. The strategy also embraces a commitment to people, with a focus on investing in our workforce, promoting diversity and inclusion, in addition to enhancing ESG transparency.
What we say:
05-17-2024. A mixed Q1 for Gildan Activewear. Sales were $696M, down 1% but inline with guidance; adjusted EPS of $0.59 rose 31.1% vs. Q1’23. Sales shrunk from lower selling prices and unfavorable mix, with shipments flat. Activewear sales of $592M were up 1% with higher shipments, positive POS trends across regions, but seasonal distributor replenishment slightly below Q1’23. International sales were up 1% with POS trends possibly stabilizing and signs of recovery. Hosiery and Underwear sales were down 10% vs. Q1’23 due to unfavorable mix, the Under Armour business phase out, and market weakness. Adjusted gross margin was 30.3%, up 410 bps due to lower raw material and input costs.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 2.75 % |
5-Yr EPS Growth | 13.70 % |
5-Yr Div Growth | 11.60 % |
Potential Risks
Debt/Equity | 0.55 |
Financial Debt to EBITDA (TTM) | 1.95 |
Current Ratio (Quarterly) | 2.35 |
Credit Score | 88 |
Dividend Growth Perspective
Dividend ($) | 1.114 |
Dividend Yield Fwd | 1.75 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.55 % |
Payout Ratio (%) | 25.00 |
Cash Payout Ratio (%) | 27.10 |
DGR 1-Yr | 12.20 |
DGR 3-Yr | 69.45 |
DGR 5-Yr | 11.60 |
DGR Streak | |
Chowder Score | 13.35 |
Next DVD PMT | 09-16-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 10 B |
PE Ratio | 19.00 |
Fwd PE | 14.20 |
Price to Book Ratio | 4.10 |
DDM Valuation | N/A |
Average 5-Yr PE | 14.08 |
Value Score | 47 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.