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Is this Large Market Cap Stock target price reasonable for Gildan Activewear Inc. (NYSE:GIL)?

The company in question is, Gildan Activewear Inc. (NYSE:GIL) currently with a stock price of 27.18 (-0.37% today). The market cap for Gildan Activewear Inc. is 6481.46, and is in the sector Consumer Goods, and Textile – Apparel Clothing industry. The target price for Gildan Activewear Inc. is 33.69. Currently Gildan Activewear Inc. is trading with a P/E of 18.88, and a forward P/E of 14.89. Average volume for Gildan Activewear Inc. is 362.72 and so far today it is 94298.

Performance in the last year for Gildan Activewear Inc. has been -10.51%. For EPS growth, Gildan Activewear Inc. has seen a growth of -14.50%, and is looking to grow in the next year to 19.74%. More long term stats show that EPS growth has been 8.10% over the last five years and could be 14.50% for the next five years. Gildan Activewear Inc. has seen sales growth quarter over quarter at -3.50%, with EPS growth quarter over quarter at -1.70%. The 20-day simple moving average is -5.56%, with the 200-day simple moving average coming to -4.65%.

Since the IPO date for Gildan Activewear Inc. on the 6/19/1998, Gildan Activewear Inc. has seen performance year to date to be -3.22%. With Gildan Activewear Inc. trading at 27.18, the dividend yield is 1.14%, and the EPS is 1.45.

So could Gildan Activewear Inc., be undervalued? Well as said before P/E is 18.88. The PEG is 1.3, P/S is 2.59 and the P/B is at 3.15. The P/cash is *TBA, with P/free cash flow at 26.25.

Gildan Activewear Inc. ability to deal with debt shows that the current ratio is 5.2, and the quick ratio is 2. This is with long term debt/equity at 0.36, and total debt/equity at 0.36.

In terms of margins, Gildan Activewear Inc. has a gross margin of 28.10%, an operating margin of 14.90% and a profit margin of 13.90%.Payout ratio for Gildan Activewear Inc. is 19.70%. Return on assets come to 11.80% with return on investment coming to 12.60%.

Insider ownership for Gildan Activewear Inc., is at 8.40% and institutional ownership comes to 83.30%. Outstanding shares are at 237.59. While shares float is 233.43. The float short is currently 1.65%, and short ratio is 10.63.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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