Gildan Story

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GIL -- USA Stock  

USD 19.93  0.53  2.73%

As many millenniums are trying to avoid consumer cyclical space, it makes sense to summarize Gildan Activewear a little further and try to understand its current market patterns. We will analyze why Gildan Activewear investors may still consider a stake in the business. Is the stock valuation justified? Here we go over Gildan Activewear perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Is Gildan Activewear (NYSE:GIL) ready for a correction?
This firm has 1.69 B in debt with debt to equity (D/E) ratio of 1.02, which is OK given its current industry classification. The company has a current ratio of 5.3, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gildan Activewear has an asset utilization ratio of 102.58 percent. This denotes that the company is making $1.03 for each dollar of assets. An increasing asset utilization means that Gildan Activewear is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Gildan Activewear using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gildan Activewear based exclusively on its fundamental and basic technical indicators. By analyzing Gildan Activewear's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Gildan Activewear's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gildan Activewear. We calculate exposure to Gildan Activewear's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Gildan Activewear's related companies.

Gildan Activewear Investment Alerts

Gildan investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Gildan Activewear performance across your portfolios.Please check all investment alerts for Gildan

Gildan Activewear Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Gildan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Gildan Activewear competition to find correlations between indicators driving the intrinsic value of Gildan.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Gildan Activewear, but it might be worth checking our own buy vs. sell analysis

Breaking down Gildan Activewear Indicators

Gildan Activewear reported the last year's revenue of 2.66 B. Total Income to common stockholders was 137.79 M with profit before taxes, overhead, and interest of 763.66 M.

Margins Breakdown

Gildan profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Gildan Activewear itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Gildan Activewear profit margins.
0.12
Profit Margin
0.15
EBITDA Margin
EBITDA Margin0.15
Gross Margin0.31
Profit Margin0.12


Gildan Activewear Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Moreover, Gildan Activewear Average Equity is relatively stable at the moment.

Gildan Activewear is likely to close below $17.55 next week

New expected short fall indicator falls down to -3.22. Possible price surge? As of the 30th of July, Gildan Activewear retains the Downside Deviation of 4.26, risk adjusted performance of 0.136, and Market Risk Adjusted Performance of 0.1978. Gildan Activewear technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Gildan Activewear, which can be compared to its competitors. Please check out Gildan Activewear information ratio, as well as the relationship between the value at risk and expected short fall to decide if Gildan Activewear is priced fairly, providing market reflects its last-minute price of 17.91 per share. Given that Gildan Activewear has jensen alpha of 0.0451, we strongly advise you to confirm Gildan Activewear's regular market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Gildan Activewear

While some companies within the apparel manufacturing industry are still a little expensive, even after the recent corrections, Gildan Activewear may offer a potential longer-term growth to stakeholders. The bottom line, as of the 30th of July 2020, we believe that at this point, Gildan Activewear is fairly valued with below average odds of distress within the next 2 years. Our ongoing recommendation on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Gildan Activewear. Please refer to our Terms of Use for any information regarding our disclosure principles.

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