ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gildan Activewear's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.16%.
As of today (2026-06-25), Gildan Activewear's WACC % is 10.35%. Gildan Activewear's ROIC % is 9.03% (calculated using TTM income statement data).
Gildan Activewear earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gildan Activewear (NYSE:GIL) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Gildan Activewear's WACC % is 10.35%. Gildan Activewear's ROIC % is 9.03% (calculated using TTM income statement data).
Gildan Activewear earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Gildan Activewear ROIC % Related Terms
Gildan Activewear ROIC % Historical Data
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The historical data trend for Gildan Activewear's ROIC % 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.
For the Apparel Manufacturing subindustry, Gildan Activewear's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gildan Activewear's ROIC % distribution charts can be found below:
* The bar in red indicates where Gildan Activewear's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 2.16% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gildan Activewear and its competitors.
Is Gildan Activewear's ROIC % too high?
Gildan Activewear's current ROIC % is 2.16%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.90. Gildan Activewear's value of 2.16% is 25.5% below this industry median. 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 ROIC % compare to RL and LEVI?
Gildan Activewear's ROIC % of 2.16% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.90. Gildan Activewear's value of 2.16% is 25.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.90, based on 1,049 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gildan Activewear's current ROIC % of 2.16% is 25.5% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gildan Activewear and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gildan Activewear's current ROIC % is 2.16%. 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 ROIC % is 2.16% and 25.5% below the Manufacturing - Apparel & Accessories industry median of 2.90. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Gildan Activewear (GIL), the current ROIC % is 2.16% 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:
ROIC %: 2.16%
GF Value™: $63.25 vs. price of $53.58 (15.3% below fair value)
Industry Position: 25.5% below the Manufacturing - Apparel & Accessories median
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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