1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
No-moat Gildan closed a difficult 2020 with sales and earnings above our expectations. Shares jumped more than 10% on the report, and we expect to raise our per share fair estimates of $18.20/CAD 23.50 by high-single-digit percentages. However, Gildan continues to be impacted by the pandemic, and we view shares as overvalued.
Gildan is a vertically integrated designer and manufacturer of basic apparel, including T-shirts, underwear, socks, and hosiery. Its primary market is the sale of blank T-shirts to wholesalers and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels. Brands include Gildan, American Apparel, Comfort Colors, and Gold Toe. Gildan produces most of its clothing at factories in Latin America. The Montreal-based company generates most of its sales in the U.S. and was incorporated in 1984.
