Gildan Activewear Inc. (GIL-T)

 GIL has performed well amid a challenging macro outlook, and is now trading at a 10.5x forward P/E. In the 4Q, GIL’s revenue declined 8% to $720M, missing estimates of $761M and EPS of $0.65 slightly missing estimates of $0.68. 
GIL’s management expects margin pressure in the first part of 2023 but expects to deliver strong margin performance for the rest of the year. 
The company has executed well on its long-term growth strategy by taking advantage of the vertically integrated models as a low-cost manufacturer to expand production to low-cost labour areas such as Bangladesh. 
It does so while continuing to expand its margins and returns on net assets (RONA). 
Overall, the company has been executing well on its growth plans, has been increasing dividends, and plans on repurchasing shares over the next few years. 
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS beat estimates by 16c at 76 cents. Revenues also beat estimates at $784M. Dividends were also raised 10%. Their stock buyback continues as well. Sales rose 14%, with free cash flow at $116M. Good results. Unlock Premium - Try 5i Free