Gildan Activewear, Inc. Class A Sub. Vot. (GIL) Company Bio
Gildan Activewear is a leading supplier of quality branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear. The company was incorporated in 1984 and is based in Montreal, Canada.
GIL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Gildan Activewear Inc. To summarize, we found that Gildan Activewear Inc ranked in the 77th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Gildan Activewear Inc, consider:
Gildan Activewear Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 24.77% of tickers in our DCF set.
Gildan Activewear Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Consumer Cyclical), Gildan Activewear Inc has a reliance on debt greater than only 21.27% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 Gildan Activewear Earnings Conference Call. In a moment, Rhod will take you through the results for the quarter and a Q&A session will follow.
Gildan Activewear ([[GIL]] -0.6%) reports Q2 revenue of $229.7M (-71.3% Y/Y), misses estimates by $11.7M.Activewear sales totaled $131.6M, down 80.2% from Q2 2019, sales in the hosiery and underwear category of $98.1M was down 27.9%.Company reported a gross loss of $148.5M, or $122.5M on an adjusted basis primarily to COVID-19 and...
(all amounts are in U.S. dollars except where otherwise indicated) (1)Please refer to "Definition and reconciliation of non-GAAP financial measures" in this press release * Strong free cash flow1 of $177 million, with total liquidity increased to $1.2 billion * Sales of $230 million, after reflecting a sales discount accrual of $25 million related to pricing action * GAAP diluted loss per share of $1.26, and adjusted diluted loss per share1 of $0.99 * Q2 GAAP results reflect $224 million of charges, including $131 million of COVID-related charges and $93 million in accelerated Back to Basics initiatives * Amendment to credit agreement covenants eliminates impact of Q2 and provides flexibility going forward * Actions to right-size manufacturing and SG&A * Strong focus o...