Gildan ActivewearGIL -0.92%88 Interest Coverage is 1.06 as of Mar. 2026, which is 94% below its 10-year median of 17.60. GuruFocus rates GIL with a GF Score™ of 88/100 and a GF Value™ of $63.25 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 743 Manufacturing - Apparel & Accessories companies, Gildan Activewear ranks worse than 53.43% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Gildan Activewear's
Operating Income
for the
three
months ended in Mar. 2026 was $60 Mil. Gildan Activewear's Interest Expense for the
three
months ended in Mar. 2026 was $-56 Mil.
Gildan Activewear's interest coverage for the quarter that ended in Mar. 2026 was 1.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Gildan Activewear's Interest Coverage or its related term are showing as below:
GIL'
s Interest Coverage Range Over the Past 10 Years
Min: 4.34 Med: 17.6 Max: 35.32
Current: 4.34
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Gildan Activewear Interest Coverage Related Terms
Gildan Activewear Interest Coverage Historical Data
* Premium members only.
The historical data trend for Gildan Activewear's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
GIL vs RL, LEVI, VFC: Interest Coverage Comparison
For the Apparel Manufacturing subindustry, Gildan Activewear's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gildan Activewear Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gildan Activewear's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Gildan Activewear's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gildan Activewear (GIL) has a Interest Coverage of 1.06 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gildan Activewear and its competitors. This is 94% below median its historical median of 17.60. Over the past decade, Gildan Activewear's Interest Coverage has ranged from 4.34 to 35.32. According to the industry distribution chart, Gildan Activewear ranks #397 out of 743 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 53.4%.
Is Gildan Activewear's Interest Coverage too high?
Gildan Activewear's current Interest Coverage of 1.06 is 94% below median its 10-year median of 17.60. Over the past 10 years, this metric has ranged from a low of 4.34 to a high of 35.32. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. Gildan Activewear's value of 1.06 is 80.5% below this industry median. Based on the distribution chart, Gildan Activewear ranks #397 out of 743 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Gildan Activewear has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gildan Activewear's Interest Coverage compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Gildan Activewear ranks #397 out of 743 companies for Interest Coverage. This places Gildan Activewear in the lower half of its industry. The industry median Interest Coverage is 5.43. Gildan Activewear's value of 1.06 is 80.5% below this benchmark. Historically, Gildan Activewear's own Interest Coverage has ranged from 4.34 to 35.32 over the past decade. While the company's 10-year median is 17.60 vs. the industry median of 5.43, Gildan Activewear has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.43, based on 743 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gildan Activewear's current Interest Coverage of 1.06 is 80.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gildan Activewear and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gildan Activewear's current Interest Coverage is 1.06, which is 94% below median its own 10-year median of 17.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gildan Activewear stock overvalued right now?
Based on GuruFocus' analysis, Gildan Activewear (GIL) is currently considered Modestly Undervalued. The stock's GF Value™ is $63.25, compared to a current price of $53.58 — trading 15.3% below its estimated fair value. The current Interest Coverage is 1.06, which is 94% below median its 10-year median of 17.60 and 80.5% below the Manufacturing - Apparel & Accessories industry median of 5.43. Gildan Activewear's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Gildan Activewear (GIL), the current Interest Coverage is 1.06 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gildan Activewear (GIL) Overvalued in 2026?
Based on GuruFocus' analysis, Gildan Activewear stock appears to be undervalued.
The current stock price of $53.58 is trading 15.3% below its estimated GF Value™ of $63.25.
GuruFocus considers Gildan Activewear to be Modestly Undervalued.
Key valuation signals for GIL:
Interest Coverage: 1.06 (94% below median its 10-year median of 17.60)
GF Value™: $63.25 vs. price of $53.58 (15.3% below fair value)
Industry Position: 80.5% below the Manufacturing - Apparel & Accessories median (#397 of 743)
No single metric tells the full story. See the GIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gildan is a vertically integrated designer and manufacturer of basic apparel, including T-shirts, underwear, socks, and hosiery. It is a leader in blank T-shirts, sweatshirts, and other apparel to wholesalers, major clothing brands, and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels, a business that has been greatly enhanced by the Hanesbrands acquisition. Gildan's brands include Hanes, Bali, Maidenform, Playtex, Gildan, American Apparel, Comfort Colors, and Goldtoe. Gildan produces most of its clothing at factories in Latin America but has been ramping up production at its new facility in Bangladesh. Incorporated in 1984, the Montreal-based company operates internationally but generated 90% of its sales in the US in 2025.
88GF Score
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