Gildan Activewear Inc. (GIL) AI Stock Analysis

Gildan Activewear Inc., headquartered in Montreal, Canada, manufactures and distributes apparel products across North America, Europe, Asia-Pacific, and Latin America. Its activewear segment supplies T-shirts, fleece tops and bottoms, and sports shirts under brand names such as Gildan, Comfort Colors, American Apparel, Alstyle, and GoldToe. The company also manufactures hosiery products, offering athletic, dress, casual, and workwear socks, along with pantyhose and leggings under brands including Under Armour, PowerSox, and Peds. Additionally, Gildan produces men's and boys' underwear and ladies' intimates under the Gildan Platinum, Secret, and Secret Silky labels, distributing through wholesale distributors, screen printers, embellishers, and retailers.

Gildan expanded its annual revenue from $2.92B in FY2021 to $3.68B in FY2025, recording a 5-year revenue CAGR of 13.2%. Over that timeframe, net income went from $607.2M in FY2021 to $405.9M in FY2025, while gross margin settled at 30.2% and operating margin finished at 19.8%. Diluted EPS rose to $3.52 in FY2025. Over the trailing twelve months, revenue reached $4.74B, helped by 72.3% year-over-year quarterly revenue growth in the period ended June 30, 2026. However, quarterly earnings fell 59.2% year-over-year, and trailing twelve months profit margin reached 1.3%, yielding EPS of $1.31.

As of June 30, 2026, Gildan held $268.0M in cash and short-term investments alongside total debt of $4.85B, leaving net debt at $4.58B. Shareholders' equity stood at $3.34B against total assets of $10.04B, resulting in a debt-to-equity ratio of 1.45 and a current ratio of 1.93. During FY2025, operating cash flow reached $585.5M, which covered capital expenditures of $108.3M to deliver free cash flow of $477.2M. Capital returns included $216.7M in share buybacks and $137.6M in dividends paid.

Gildan trades at a trailing P/E of 31.3x, above the 18.0x median of its US-listed Consumer Cyclical peers, but its forward P/E of 8.8x is lower than the peer median of 14.1x. Its enterprise value of $13.30B implies an EV/EBITDA multiple of 21.3x, compared to 11.1x for peers, while price-to-sales is 1.6x against the peer median of 0.7x. Gildan's PEG ratio is 0.38. Over the past year, GIL returned -31.2%, underperforming the S&P 500 return of 16.8%, and the stock sits 27.5% below its 200-day average.

Gildan pays a quarterly dividend with an annualized forward payout of $1.00 per share, delivering a dividend yield of 2.43% with a payout ratio of 26.5%. The company has made dividend distributions for 16 consecutive years and achieved a 5-year annualized dividend growth rate of 42.5%. Its most recent ex-dividend date was August 20, 2026.

Gildan carries 6 Strong Buy, 5 Buy, and 2 Hold recommendations from analysts, with no Sell ratings. The average price target of $77.00 represents an 88.1% premium over the last closing price of $40.94. For the fiscal year ending December 31, 2026, consensus estimates expect revenue of $5.98B and EPS of $4.62, representing projected EPS growth of 31.6%. The company exceeded EPS expectations in 3 of the last 4 quarters, with the next earnings announcement scheduled for November 4, 2026.

This page is an AI-written research summary of Gildan Activewear Inc. (GIL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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