Gildan Activewear Stock Analysis, Valuation (NYSE:GIL)

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$29.28 $0.35 (1.21%) GIL stock closing price May 23, 2018 (Closing)
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Gildan Activewear
Updated on : May 23, 2018
previous close
GIL 29.3 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Textile-Apparel
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
5.4%
Operating Profit
Operating Margin:
14.1%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
775M
Debt/Equity Ratio:
 0.39
Compared to the industry
Cash Flow
Operating cash flow:
-$17.6M
Net Income:
$67.9M
Dividend Yield
GIL dividend yield:
1.3%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
PE Valuation
Long Term Growth
Cash Flow
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
GIL PS :
2.3
Industry PS :
1.5
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.4%
Return on Equity:
16.8%
Free Cash Flow Margin:
-6%
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Gildan Activewear Stock Analysis

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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%.

Comments on this video and Gildan Activewear stock

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.