Gildan Activewear Inc. (GIL.TO) stock analysis

In our weekly check, Gildan Activewear Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About Gildan Activewear Inc.

Gildan Activewear Inc. is a Consumer Cyclical company (Apparel - Manufacturers) based in Canada, listed on TSX as GIL.TO.

What our checks show for GIL.TO

Red flags

• Net debt is 5x a year of EBITDA (debt/equity 1.45). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 19.4 points over 5 years, to 1.3%: the company keeps less of each sale as profit.
• The gross margin fell by 4.4 points, to 27.7%: costs are rising faster than prices.
• The net margin is only 1.3%: little room if costs rise.
• The dividend takes 251% of profit: little cushion if profit falls.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.3 years.

Warning signs

• Operating profit covers interest only 2.6 times: a weak year could make the payments hard.
• Earnings per share fell 42.8% a year over the last 3 years.
• Net profit fell 51.3% a year over the last 3 years.
• The price swings a lot: 42.8% annual volatility. Expect large ups and downs.
• Return on capital (ROCE) is only 9.1%.

Strengths

• Operating cash flow is 9.54x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 155% a year over the next years.
• Analysts expect the net margin to improve by 13 points from today's 1.3%.
• Free cash flow is 10.6% of revenue: cash for dividends, buybacks or growth.
• The share count fell by 13.1% in 2 years: the company buys back its own shares.
• Pay in shares is only 7.5% of free cash flow.

Next earnings report: 2026-11-05

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Questions

What grade does Gildan Activewear Inc. (GIL.TO) have?

In our weekly check, Gildan Activewear Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GIL.TO stock?

This week's biggest flags for Gildan Activewear Inc.: High debt, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does Gildan Activewear Inc. do?

Gildan Activewear Inc. is a Consumer Cyclical company (Apparel - Manufacturers) based in Canada, listed on TSX as GIL.TO.

When does Gildan Activewear Inc. report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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