Gildan Activewear Inc.

GIL
About the company

Gildan Activewear Inc. manufactures and sells various apparel products. The company provides various activewear products, including T-shirts, fleece tops and bottoms, sports shirts, polos, and tank tops under Gildan, Hanes, Gildan Performance, Gildan Hammer, Gildan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, American Apparel, ALLPRO, ComfortWash, BEEFY, Bonds and Champion brands.

Country: CanadaPrice: $42.62Market Cap: $7.9B

Investment snapshot

25%positive consensus
Scored 36d ago

Positive

4

BUY / PASS

Neutral / negative

3 / 8

NEUTRAL / FAIL

Median fair value

$36.12

-15.3% vs price

Models with upside

2 / 16

Positive margin of safety

Strongest signal

7 of 10 pass — Oshaughnessy, Pabrai and Dreman object

Key risk

No clean pass — all 11 investors flag at least one debt & leverage criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K36d ago
MetricO'Shaughnessy

Systematic Factor Composite

Lynch

GARP

Buffett

Quality Compounder

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Marks

Risk-Aware Value

Munger

Quality Focus

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Greenblatt

Magic Formula

Graham

Defensive Value

VerdictFAILFAILPASSFAILFAILNEUTRALFAILNEUTRALFAILFAILPASSNEUTRALPASSPASSFAIL · Rank #1315 (Top 41%)FAIL
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/A+3.3%-106.3%+55.7%N/AN/AN/A-0.8%-49.8%-23.9%-12.6%-5.2%N/A-59.2%-26.8%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Cash Flow70% pass✓ 9✗ 3▾

    7 of 10 pass — Oshaughnessy, Pabrai and Dreman object

    (Operating cash flow - capex) / market capitalization+6.33%; #1199/4487 (top 26.7%)
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive and Growing$499.9M
    ✓LynchPositive and growing
    Free Cash Flow Proxy$440.0M
    ✓BuffettPositive and growing
    P/E or FCF YieldP/E=16.3x, FCF Yield=6.3%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Operating Cash Flow - Capital Expenditures$499.9M
    ✓Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency10/10 years positive
    ✓SleepPositive OCF in >= 70% of available years
    FCF Positive10/10 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap6.3%
    ✓Ackman>= 4%
    Price / FCF per Share15.8x
    ✓Ackman<= 25
    Price / (CFO / Shares)13.0x
    ✗Dreman< 8x
    Operating Cash Flow$606.3M
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=5.79%, ROA=3.81%
    ✓PiotroskiCFO/Assets > ROA

Where It Falls Short

  • Debt & Leverage0% pass✓ 2✗ 12▾

    No clean pass — all 11 investors flag at least one debt & leverage criterion

    Total Debt / Equity1.21
    ✗Lynch< 0.33
    Cash - Long-term Debt$-3.6B
    ✗LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 1.21, IC: N/A
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Debt Levels1.21
    ✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
    Total Debt / Shareholders' Equity1.21x
    ✗SchlossD/E < 1.00x✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗Dreman< 0.8
    Current Assets / Current Liabilities2.11x
    ✓SchlossCurrent ratio >= 1.50x (app cutoff)✓Dreman> 1.5
    Interest Coverage & Debt/EBITDAIC=N/A (no interest expense), D/EBITDA=5.6x
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity1.21
    ✗Ackman<= 1.0
    LT Debt / Total Assets Change33.27% -> 36.92%
    ✗PiotroskiDecreased YoY
    LT Debt vs Net Current AssetsLT Debt $3.9B vs NCA $2.5B
    ✗GrahamLT Debt <= Net Current Assets
  • Profitability13% pass✓ 12✗ 19▾

    13 of 15 flag GIL's profitability — Oshaughnessy, Lynch, Buffett +10 more

    Net income / market capitalization+5.05%; #1566/6251 (top 25.1%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)P/E 16.3x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR-4.0%
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE11.2%
    ✗Lynch> 15%
    Net Income Positive (10+ years)9/11 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)25.3%
    ✓Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)17.1% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$440.0M
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)0.63
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Margin of SafetyP/E=16.3x, P/B=2.2x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity22.0% (3-yr avg)
    ✓AkreROE > 20% (3-year avg)
    Positive Diluted-EPS Years9/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR-4.0% over 4 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 27.5% -> 31.2%, operating margin 20.1% -> 17.1%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR-4.0% CAGR over 4 years
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend20.1% (2023) -> 17.1% (2025)
    ✗TempletonNon-negative operating-margin trend over 3 years
    Discount to Intrinsic Value-5.2% (IV=$40.50 vs Price=$42.62)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency9/10 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue17.1%
    ✓Ackman>= 15%
    Net Income / Shareholders Equity11.2%
    ✗Ackman>= 15%
    Pre-Tax Income / Revenue13.0%
    ✓Dreman>= 8%
    Net Income / Shareholders' Equity11.2%
    ✗Dreman> 12%
    Net Income / Total Assets3.81%
    ✓PiotroskiROA > 0
    ROA Change YoY10.79% -> 3.81% (delta: -6.98%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=5.79%, ROA=3.81%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY30.7% -> 31.2%
    ✓PiotroskiImproved YoY
    EBIT / Enterprise Value5.2%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=5.2%, ROC=15.1%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Positive EPS (10 years)9/11 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)75.3%
    ✓Graham>= 33% growth
  • Valuation17% pass✓ 4✗ 22▾

    10 of 12 flag GIL's valuation — Oshaughnessy, Lynch, Pabrai +7 more

    Revenue / market capitalization+0.4585; #2608/5203 (top 50.1%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+5.05%; #1566/6251 (top 25.1%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+6.33%; #1199/4487 (top 26.7%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-23.41%; #4740/6203 (top 76.4%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)P/E 16.3x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=16.3x, FCF Yield=6.3%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Price / Book Value per Share2.22x
    ✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
    Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change+144.9%
    ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS16.3x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E-0.14
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / EPS16.3x
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
    Price vs. Trailing Low100% of trailing low ($42.62)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    P/B or P/E vs. Historical AverageP/E=16.3x, P/B=2.2x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-5.2% (IV=$40.50 vs Price=$42.62)
    ✗Marks>= 20% below intrinsic value
    Valuation ReasonablenessP/E=16.3x, OE Yield=5.6%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share15.8x
    ✓Ackman<= 25
    Price / (CFO / Shares)13.0x
    ✗Dreman< 8x
    EBIT / Enterprise Value5.2%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=5.2%, ROC=15.1%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / 3-yr avg EPS15.8x
    ✗Graham<= 15x
    Price-to-Book Ratio2.2x
    ✗Graham<= 1.5x
    P/E x P/B35.00
    ✗Graham<= 22.5
  • Valuation models20% pass✓ 2✗ 8▾

    Models split on GIL at $42.62 — fair values range $20.66–$96.30

    Buffett fair value$44.07
    ✓Buffett+3.3% margin vs $42.62
    Pabrai fair value$20.66
    ✗Pabrai-106.3% margin vs $42.62
    Akre fair value$96.30
    ✓Akre+55.7% margin vs $42.62
    Templeton fair value$42.30
    ✗Templeton-0.8% margin vs $42.62
    Marks fair value$28.45
    ✗Marks-49.8% margin vs $42.62
    Munger fair value$34.40
    ✗Munger-23.9% margin vs $42.62
    Ackman fair value$37.84
    ✗Ackman-12.6% margin vs $42.62
    Dreman fair value$40.50
    ✗Dreman-5.2% margin vs $42.62
    Greenblatt fair value$26.77
    ✗Greenblatt-59.2% margin vs $42.62
    Graham fair value$33.61
    ✗Graham-26.8% margin vs $42.62
  • Verdicts31% pass✓ 4✗ 9▾

    Split decision: 8 FAIL · 4 PASS · 3 NEUTRAL

    Overall verdict
    ✗OshaughnessyFAIL (Rank #902/953 (Top 94.6%))✗LynchFAIL (1/7)✓BuffettPASS (5/9)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)•SchlossNEUTRAL (4/7)✗NeffFAIL (3/6)•SleepNEUTRAL (4/6)✗TempletonFAIL (3/8)✗MarksFAIL (2/5)✓MungerPASS (2/4)•AckmanNEUTRAL (6/9)✓DremanPASS (5/11)✓PiotroskiPASS (F-Score 4)✗GreenblattRank #1315✗GrahamFAIL (3/9)
  • Growth38% pass✓ 6✗ 7▾

    5 of 8 flag GIL's growth — Lynch, Neff, Sleep +2 more

    Basic earnings-growth PEG (dividends excluded)P/E 16.3x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR-4.0%
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: 113.4% vs Rev: 10.7%
    ✗LynchInventory growth < Revenue growth
    3-5 Year Diluted EPS CAGR-4.0% over 4 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendgross margin 27.5% -> 31.2%, operating margin 20.1% -> 17.1%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR12.8%
    ✓SleepCAGR > 7%
    5-Year EPS CAGR-4.0% CAGR over 4 years
    ✗Templeton> 0% (5-year EPS CAGR)
    Positive Net Income Frequency9/10 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth2.3%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency3/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction$1.47 (2016) -> $2.61 (2025)
    ✓DremanPositive over recent years
    EPS CAGR6.6% CAGR over 9 years
    ✓Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)75.3%
    ✓Graham>= 33% growth
  • Efficiency50% pass✓ 5✗ 6▾

    4 of 8 pass — Akre, Munger, Piotroski +1 more object

    ROIC (3-5 yr avg)16.2%
    ✓Buffett> 10%
    ROIC - WACC+6.2%
    ✓BuffettPositive (WACC = 10%)
    ROIC (high and growing)FY2023: ROIC=17.3%; FY2024: ROIC=16.3%; FY2025: ROIC=6.2%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC4.1% (RR=66% x ROIC=6.2%)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)4/5 years above 12% (latest 6.2%)
    ✓SleepROIC > 12% in a majority of years
    Return on Invested Capital6.2%
    ✗Munger> 15%
    Current Assets / Current Liabilities2.11
    ✓Dreman> 1.5
    Current Ratio Change YoY2.22 -> 2.11
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.88x -> 0.35x
    ✗PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)15.1%
    ✗Greenblatt> 25%
    Current Ratio2.11
    ✓Graham>= 2.0

Business & financials

Company Profile

Industry: Apparel
SIC Sector: Apparel Manufacturing
Size: Mid Cap($7.9B)
Revenue: $3.6B+10.7% YoY
Net Income: $398.9M-0.5% YoY

Financial Snapshot

Operating Margin17.1%
Return on Equity11.2%
Debt / Equity1.21
Current Ratio2.11
EPS (Diluted)$2.61+6.1% 1y
Shares Retired−21.5% / −8.9% 2y

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DECKDECKERS OUTDOOR CORP
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Shareholder Return

Fiscal 2025

Issued 21.5% of shares last year, 8.9% issued over two.

Buybacks
—
Dividends
$135.2M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
−4.6% = −10.8% + 7.0%
FY23
3.4% = −1.5% + 5.0%
FY24
−18.8% = −24.9% + 8.1%
FY25
6.1% = −0.5% + 6.6%
Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$7.9B$7.7Best.$5.4Best.$5.3Best.$7.0Best.
Revenue$3.6B↑11%$3.3B↑2%$3.2B↓1%$3.2B↑11%$2.9B
Operating Income$619.9M$618.2M↓4%$643.9M↑7%$603.4M↓7%$651.9M
Net Income$398.9M$400.9M↓25%$533.6M↓1%$541.5M↓11%$607.2M
EPS (Diluted)$2.61↑6%$2.46↓19%$3.03↑3%$2.93↓5%$3.07
Gross Margin31.2%↑2%30.7%↑11%27.5%↓10%30.6%↓5%32.2%
Operating Margin17.1%↓9%18.9%↓6%20.1%↑8%18.6%↓17%22.3%
ROE11.2%↓59%27.5%↑1%27.3%↓5%28.8%↓9%31.6%
Total Debt$4.3B↑181%$1.5B↑56%$985.0M↑6%$930.0M↑55%$600.0M
Shareholders' Equity$3.6B↑145%$1.5B↓26%$2.0B↑4%$1.9B↓2%$1.9B
Current Ratio2.11↓5%2.22↓5%2.33↓13%2.69↓14%3.12
Debt / Equity1.21↑15%1.05↑110%0.50↑2%0.49↑58%0.31
Operating Cash Flow$606.3M↑21%$501.4M↓8%$546.6M↑32%$413.5M↓33%$617.5M
Free Cash Flow$499.9M↑40%$356.1M↑4%$343.3M↑97%$174.4M↓64%$490.1M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Apparel

GIL vs Peers — Financial Grading

Revenue$3.6BBottom 25%
Net Income$398.9MMedian
ROE11.2%Bottom 25%
D/E1.21Bottom 25%
Op. Margin17.1%Median
Curr. Ratio2.11Median
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
CINTAS CORPCTAS$79.0B$197.74$10.3B$1.8B38.7%0.5222.8%2.093/95/91/71/3F-Score 55/11
TAPESTRY, INC.TPR$22.8B$114.12$7.0B$183.2M21.4%2.795.9%1.871/93/91/70/3F-Score 53/11
Amer Sports, Inc.AS$15.2B$27.24$6.6B$427.4M7.4%0.1410.7%1.502/93/92/71/3F-Score 74/11
DECKERS OUTDOOR CORPDECK$10.8B$77.68$5.5B$1.0B41.0%—23.1%3.542/95/93/73/3F-Score 75/11
lululemon athletica inc.LULU$10.7B$96.87$11.1B$1.6B31.8%0.0019.9%2.264/95/93/73/3F-Score 45/11
On Holding AGONON$9.9B$29.55$3.8B$257.3M12.5%0.3212.5%2.712/95/92/71/3F-Score 74/11
LEVI STRAUSS & COLEVI$7.6B$19.75$6.3B$578.1M25.4%0.4610.8%1.553/95/92/71/3F-Score 75/11
Crocs, Inc.CROX$6.3B$126.14$4.0B$81.2M-6.3%0.953.7%1.272/94/90/71/3F-Score 52/11