Gildan Activewear Stock Analysis, Valuation (NYSE:GIL)
Gildan Activewear Stock Analysis
Take a look at Amigobulls Gildan Activewear stock analysis video. Our analyst opinion covering the buy and sell arguments for GIL stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Gildan Activewear Inc (USA) Stock Rating 3/5
Amigobulls GIL stock analysis uses latest quarter 2018 Q1 financial data like Gildan Activewear revenue growth, profit margins and cash flows. Gildan Activewear valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Gildan Activewear stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy GIL stock?
- Gildan Activewear had a healthy average operating margin of 14.1% over the last 4 quarters.
- Net margins came in at average 12.7% for Gildan Activewear over the last twelve months.
- Gildan Activewear has a lower debt burden than its peers in the Consumer Discretionary sector, with a debt/equity ratio of 0.39.
- The Gildan Activewear stock currently trades at a price to earnings ratio of 17.5. We rate this as a positive, compared to the industry average of 21.5.
- Gildan Activewear has an attractive ROIC (Return on Invested Capital) of 13.4%
- The LTM ROE of 16.8% for Gildan Activewear is attractive.
Should you sell GIL stock?
- Long term revenue growth of 5.4% over the past 5 years has been disappointing.
- GIL stock is trading at a PS multiple of 2.3, which is a negative when compared to the Textile-Apparel industry average multiple of 1.5.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -6%.
Investors can make use of the Amigobulls Gildan Activewear stock analysis to ascertain how GIL stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of GIL stock and helps investors in making good buy and sell decision.
Among the financials of the company, Gildan Activewear revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of GIL technical analysis to check whether the fundamental story is reflected in the market sentiment.