Gildan Activewear Stock Analysis, Valuation (NYSE:GIL)
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 3.8/5
Amigobulls GIL stock analysis uses latest quarter 2018 Q2 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's average operating margin of 14.06 was exceptional.
- LTM Net margins were good at 12.7% for Gildan Activewear.
- With a debt/equity ratio of 0.38, Gildan Activewear is comparatively less leveraged than its peers in the Consumer Discretionary sector.
- The price to earnings multiple of 17.5 is attractive when compared with the sector average PE ratio of 20.9.
- Gildan Activewear generates a high return on invested capital of 13.4.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Gildan Activewear at 16.8.
Should you sell GIL stock?
- Operating cash flows are negative.
- The company is trading at a price to sales multiple of 2.3, which is overvalued in comparison to the Consumer Discretionary sector average multiple of 1.6.
- 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.