GILGildan Activewear Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GIL?
Gildan Activewear Inc. earns 6.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.5 points below what the capital costs: growth destroys value
- Operating margin
- 17%
Operating margin · Apparel Manufacturing median 7.3% · fiscal year to FY2025
- Cash conversion
- 1.17×
Cash conversion · 1.04× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −6.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −9.1% |
| FY2021 | 22% |
| FY2022 | 19% |
| FY2023 | 20% |
| FY2024 | 19% |
| FY2025 | 17% |
Details›
- Gross marginfiscal year to FY2025
- 31%
- Operating marginfiscal year to FY2025
- 17%
- Net marginfiscal year to FY2025
- 11%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $3.62B
- Free cash flow, trailing twelve months
- $500M
- Net income, trailing twelve months
- $399M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Apparel Manufacturing
Ranks #7 of 12 by RyuScore