Q: Good morning.
Please comment on the prospects of GIL with respect to 'tariff' climate, 2025 performance, and entry price point.
Grazzia
Please comment on the prospects of GIL with respect to 'tariff' climate, 2025 performance, and entry price point.
Grazzia
5i Research Answer:
GIL beat estimates in the Q4 and for the year showed decent earnings, but a decline from 2023 (per share $2.92 to $2.66). Free cash flow remains solid. The dividend was just increased. The balance sheet is still a bit leveraged at 3X cash flow. The 2025 outlook is much improved, with consensus at 40%+ earnings growth. The stock is quite cheap at 15X earnings and doing well, near its highs, up 15% YTD and 68% in a year. We might not expect another 68% here but we think things are solid overall. On its Q4 call it said it did not expect a material tariff impact. The stock is up a lot this week. We would be OK buying a partial position with more if it went below $76.