Tag Archives: GIL

Gildan Activewear (GIL), mcap=$5.7bn, price $31.19 vs $28.76

Dominant supplier of blank t-shirts which are sold to wholesale distributors.
Unwarranted stock price decline over the last 6 months as GILs EBITDA & EPS forecasts are up meaningfully during this period.
Trades at almost all-time low 8x fwd PE.
Inventory levels at the distributor level are still below pre-covid levels, and it’ll take until 2023 to get fully restocked.
Over 80% market share.
Unassailable cost advantage via manufacturing scale and vertical integration.
Margins have been structurally improved from 15% to 20%.
A streamlined cost base will help drive accelerated top-line growth.
Defensive long-term compounder run by great management.