Gildan Activewear, Inc. (GIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gildan Activewear, Inc.

iFabric Corp.

Unisync Corp.

Roots Corp.

Grounded People Apparel, Inc.

Why is Gildan Activewear, Inc. ?

High Management Efficiency with a high ROCE of 17.58%

Poor long term growth as Net Sales has grown by an annual rate of 10.82% over the last 5 years

Positive results in Jun 25

ROCE(HY) Highest at 30.24%
DIVIDEND PER SHARE(HY) Highest at CAD 5.22
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 35.43%, it has a expensive valuation with a 5.88 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.89%, its profits have risen by 30.4% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 78.31%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 24.89% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gildan Activewear, Inc. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gildan Activewear, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Gildan Activewear, Inc.

17.34%

6.80

30.25%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.82%

EBIT Growth (5y)

123.05%

EBIT to Interest (avg)

11.86

Debt to EBITDA (avg)

1.69

Net Debt to Equity (avg)

1.24

Sales to Capital Employed (avg)

1.03

Tax Ratio

23.31%

Dividend Payout Ratio

33.28%

Pledged Shares

Institutional Holding

80.65%

ROCE (avg)

17.58%

ROE (avg)

22.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.63

EV to EBIT

15.44

EV to EBITDA

12.90

EV to Capital Employed

3.49

EV to Sales

3.29

PEG Ratio

0.42

Dividend Yield

ROCE (Latest)

22.63%

ROE (Latest)

35.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

ROCE(HY)

Highest at 30.24%

DIVIDEND PER SHARE(HY)

Highest at CAD 5.22

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -3.69% (YoY

NET SALES(Q)

Highest at CAD 1,269.62 MM

OPERATING PROFIT(Q)

Highest at CAD 335.72 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.44 %

PRE-TAX PROFIT(Q)

Highest at CAD 243.07 MM

NET PROFIT(Q)

Highest at CAD 200.16 MM

EPS(Q)

Highest at CAD 1.27

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 132.72 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.22%

Here's what is working for Gildan Activewear, Inc.

Dividend per share

Highest at CAD 5.22 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 1,269.62 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 335.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 26.44 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 243.07 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 200.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -3.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Gildan Activewear, Inc.

Debt-Equity Ratio

Highest at 132.72 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.22%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio