Assessing Gildan Activewear (TSX:GIL)’s Valuation After Its Strong Multi‑Year Share Price Performance
Gildan Activewear (TSX:GIL) has quietly turned in a strong stretch for shareholders, with the stock up roughly 11% over the past month and more than 30% over the past year.
See our latest analysis for Gildan Activewear.
That kind of steady climb, capped by a roughly 30 percent year to date share price return and a 166.85 percent five year total shareholder return, suggests momentum is still building as investors reassess Gildan’s growth and margin story.
If Gildan’s run has you rethinking where the next compounding story might come from, this is a great moment to explore fast growing stocks with high insider ownership.
But with margins improving, double digit revenue growth and the share price now sitting within sight of analyst targets, is Gildan still trading below its true value, or is the market already pricing in the next stage of growth?
Most Popular Narrative Narrative: 13.4% Undervalued
With Gildan Activewear closing at CA$87.48 against a most popular narrative fair value of about CA$101, the story frames this gap as an opportunity grounded in improving profitability and disciplined capital returns.
Gildan's ongoing investments in automation, manufacturing optimization (e.g., Bangladesh facility ramp up, yarn modernization), and additional capacity in Central America are expected to generate operating leverage, further lowering per unit costs and supporting operating margin expansion in coming years.
Want to see how margin gains, rising earnings power and a richer future multiple all tie together into that higher fair value target? The full narrative unpacks the precise growth, profitability and valuation assumptions that bridge today’s price to that implied upside, and the numbers behind it might surprise you.
Result: Fair Value of $101.00 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent international demand weakness or new program underperformance could stall growth and challenge both margin expansion assumptions and the implied valuation upside.
Find out about the key risks to this Gildan Activewear narrative.
Build Your Own Gildan Activewear Narrative
If you would rather dig into the numbers yourself and challenge this view, you can build a custom Gildan thesis in minutes, Do it your way.
A great starting point for your Gildan Activewear research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
Looking for more investment ideas?
Do not stop at one compelling opportunity. Put Simply Wall Street’s screener to work and uncover fresh stocks that match your strategy before the market catches on.
- Consider potential income by targeting reliable payouts through these 13 dividend stocks with yields > 3% that aim to balance yield with fundamental strength.
- Explore growth themes by focusing on innovation driven names using these 25 AI penny stocks before the crowd fully prices in their potential.
- Seek to strengthen your long term returns by zeroing in on quality businesses trading below estimated value through these 914 undervalued stocks based on cash flows before sentiment turns.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com