Gildan Activewear Inc. Class A Sub. Vot. Common Stock (GIL)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price. Gildan Activewear has scale: it makes activewear and hosiery under Gildan, Hanes, Champion, American Apparel, Comfort Colors, and other brands, with 75,000 employees. That portfolio is a competitive asset, but apparel manufacturing is cyclical and crowded, and the numbers do not yet show a wide moat. On the 2026-10-13 close of $41.80, FairStock calculates a P/E of 32.4, P/B of 2.32, EV/EBITDA of 25.22, ROE of 8.68%, and ROCE of 8.48%. The returns are modest for the multiple. Financial health is mixed: trailing free cash flow is $520.7 million, a 4.7% FCF yield, and the dividend yield is 2.13%; but debt-to-equity is 1.48 and the Altman Z-Score is 1.63, which points to leverage risk. In fiscal Q2 2026, revenue was $1.6 billion and net income was -$50.0 million, a -3.16% margin. That loss matters. Graham's number is $22.88, and with the price at $41.80 the margin of safety is -82.69%; FairStock's score is 49/100. The 52-week range of $39.93 to $73.70 shows the stock has fallen hard, but a lower price is not automatically a bargain. I would need evidence that margins and profits are recovering, debt is manageable, and free cash flow is durable before calling this a value opportunity. Until then, I see a fair-to-expensive cyclical company with real brands but weak current profitability.

In plain English: Gildan Activewear makes T-shirts, fleece, sportswear, and socks under brands such as Gildan, Hanes, Champion, and American Apparel. The business has scale and still generates cash, but it just had a losing quarter and carries a lot of debt. At the recent price, the shares look expensive compared with the company's recent profits and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer