Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Gildan Activewear Inc. (GIL)

Company Dividend Discount ModelIndustry: Apparel - ManufacturersSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$51.24 - $101.59$70.98
Multi-Stage$78.89 - $86.67$82.71
Blended Fair Value$76.85
Current Price$57.67
Upside33.25%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320232022202120192018201720172015
DPS3.40%9.64%0.880.870.810.600.200.740.620.560.490.42
YoY Growth--1.27%6.49%36.82%196.08%-72.94%19.40%11.49%14.04%16.76%19.80%
Dividend Yield--1.99%2.34%2.41%1.59%0.66%5.82%1.70%1.93%1.81%1.37%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)473.72
(-) Cash Dividends Paid (M)135.45
(=) Cash Retained (M)338.27
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)94.7459.2235.53
Cash Retained (M)338.27338.27338.27
(-) Cash Required (M)-94.74-59.22-35.53
(=) Excess Retained (M)243.53279.06302.74
(/) Shares Outstanding (M)152.00152.00152.00
(=) Excess Retained per Share1.601.841.99
LTM Dividend per Share0.890.890.89
(+) Excess Retained per Share1.601.841.99
(=) Adjusted Dividend2.492.732.88
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate1.40%2.40%3.40%
Fair Value$51.24$70.98$101.59
Upside / Downside-11.15%23.08%76.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)473.72485.10496.75508.68520.90533.41549.42
Payout Ratio28.59%40.87%53.16%65.44%77.72%90.00%92.50%
Projected Dividends (M)135.45198.28264.05332.87404.84480.07508.21

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate1.40%2.40%3.40%
Year 1 PV (M)184.65186.47188.29
Year 2 PV (M)228.98233.52238.11
Year 3 PV (M)268.81276.84285.03
Year 4 PV (M)304.45316.63329.19
Year 5 PV (M)336.20353.10370.69
PV of Terminal Value (M)10,668.2511,204.7711,762.65
Equity Value (M)11,991.3412,571.3413,173.95
Shares Outstanding (M)152.00152.00152.00
Fair Value$78.89$82.71$86.67
Upside / Downside36.80%43.42%50.29%

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