Gildan Activewear Inc. (GIL)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Gildan Activewear Inc. trades at USD53.58, which is 23% below the USD65.84 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 41 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 30.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Gildan Activewear Inc.
Gildan Activewear Inc. manufactures and sells various apparel products. The company provides various activewear products, including T-shirts, fleece tops and bottoms, sports shirts, polos, and tank tops under Gildan, Hanes, Gildan Performance, Gildan Hammer, Gildan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, American Apparel, ALLPRO, ComfortWash, BEEFY, Bonds and Champion brands. It also offers hosiery products comprising athletic, dress, casual and workwear socks, liner socks, and socks for therapeutic purposes under Gildan, GoldToe, Signature Gold by GoldToe, GoldToe Edition, Peds, MediPeds, Hanes, and Powersox brands. In addition, the company provides men's and boys' underwear products and ladies' panties under Gildan, Gildan Platinum, Gildan Softstyle, Gildan Performance, BareSoft, Gildan Performance, EZBreeze, Bonds, Berlei, Bras N Things, Polo Ralph Lauren brands. Further, it provides women's lingerie, bras and shapewear under Bali, Playtex, WonderBra, Maidenform, Bonds, Bras N Things, Berle brands. It sells its products to wholesale distributors, screenprinters, and embellishers in North America, Europe, the Asia-Pacific, and Latin America, as well as to retailers in North America, including mass merchants, department stores, national chains, specialty retailers, craft stores, and online retailers; and manufactures products for lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.
GIL passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
11 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Scott Ferguson, Sachem Head Capital Management LP$230.39M · 5.5% of book
- Bryan Lawrence, Oakcliff Capital Partners, LP$37.94M · 16.7% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$23.33M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$20.43M · 0.0% of book
- Steve Cohen, Point72 Asset Management, L.P.$8.56M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Gildan Activewear Inc. (GIL) undervalued?
Against our discounted cash flow estimate of USD65.84, GIL at USD53.58 is 23% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own GIL?
11 of the institutions we track reported a position in GIL in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is GIL's P/E ratio?
GIL trades at 30.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for GIL, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.