GAP Stock Analysis: The Gap | NYSE
Apparel Retail | NYSE, USA | Market Cap: 7.907m USD | 12M Return: 17.2% | US3647601083 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 134M
EPS Trend: 55.1%
Qual. Beats: 0
Rev. Trend: 90.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Gap, Inc. (NYSE: GAP) is a U.S.-headquartered apparel retailer that designs, markets, and sells casual and lifestyle clothing, accessories, and personal care products for men, women, and children. Its portfolio spans four owned brands: Old Navy (value/value-segment family apparel), Gap (casual lifestyle), Banana Republic (workwear and contemporary apparel), and Athleta (womens activewear), giving the company exposure to multiple price points and customer segments within the apparel retail industry.
Distribution combines company-operated retail stores, e-commerce sites, and franchise and licensing arrangements, with franchise partners operating Gap, Old Navy, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa. The company also sells through third-party arrangements, supplementing its direct-to-consumer channels and extending brand reach internationally without owning all foreign retail locations. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California, and trades as a mid-cap stock in the S&P 500s Consumer Discretionary sector.
- Old Navy comparable sales decline drags on Gap total revenue
- Athleta growth slows as Lululemon and Nike intensify competition
- Consumer discretionary spending weakness pressures apparel retail margins
| Net Income: 1.25b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 2.30 > 1.0 |
| NWC/Revenue: 17.28% < 20% (prev 14.37%; Δ 2.91% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.83b > Net Income 1.25b |
| Net Debt (7.46b) to EBITDA (1.78b): 4.19 < 3 |
| Current Ratio: 1.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (371.0m) vs 12m ago -2.11% < -2% |
| Gross Margin: 43.26% > 18% (prev 41.09%; Δ 2.17% > 0.5%) |
| Asset Turnover: 122.6% > 50% (prev 124.9%; Δ -2.27% > 0%) |
| Interest Coverage Ratio: 13.63 > 6 (EBIT TTM 1.27b / Interest Expense TTM 93.0m) |
| A: 0.21 (Total Current Assets 5.87b - Total Current Liabilities 3.22b) / Total Assets 12.9b |
| B: 0.30 (Retained Earnings 3.89b / Total Assets 12.9b) |
| C: 0.10 (EBIT TTM 1.27b / Avg Total Assets 12.5b) |
| D: 0.44 (Book Value of Equity 3.95b / Total Liabilities 8.90b) |
| Altman-Z'' = 3.49 = A |
As of October 10, 2026, the stock is trading at USD 23.23 with a total of 3,773,560 shares traded. Over the past week, the price has changed by +3.96%, over one month by +9.56%, over three months by +24.15% and over the past year by +17.20%.
Current recommended Stop Loss: 22.20 (which is 4.4% or 1.2 ATR below the current price).
The Gap has received a consensus analysts rating of 3.71. Therefore, it is recommended to hold GAP.
- StrongBuy: 7
- Buy: 1
- Hold: 13
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 26.5 | 14.1% |
P/E Trailing = 6.7801
P/E Forward = 8.8889
P/S = 0.5159
P/B = 1.9079
P/EG = 1.1662
Revenue TTM = 15.3b USD
EBIT TTM = 1.27b USD
EBITDA TTM = 1.78b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 618.0m USD (from shortTermDebt, last quarter)
Debt = 9.95b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.23b
Net Debt = 7.46b USD (calculated: Debt 9.95b - CCE 2.48b)
Enterprise Value = 15.4b USD (7.91b + Debt 9.95b - CCE 2.48b)
Interest Coverage Ratio = 13.63 (Ebit TTM 1.27b / Interest Expense TTM 93.0m)
EV/FCF = 13.85x (Enterprise Value 15.4b / FCF TTM 1.11b)
FCF Yield = 7.22% (FCF TTM 1.11b / Enterprise Value 15.4b)
FCF Margin = 7.24% (FCF TTM 1.11b / Revenue TTM 15.3b)
Net Margin = 8.14% (Net Income TTM 1.25b / Revenue TTM 15.3b)
Gross Margin = 43.26% ((Revenue TTM 15.3b - Cost of Revenue TTM 8.70b) / Revenue TTM)
Gross Margin QoQ = 52.83% (prev 40.52%)
Tobins Q-Ratio = 1.20 (Enterprise Value 15.4b / Total Assets 12.9b)
Interest Expense / Debt = 0.93% (Interest Expense 93.0m / Debt 9.95b)
Taxrate = 26.78% (456.0m / 1.70b)
NOPAT = 928.5m (EBIT 1.27b * (1 - 26.78%))
Current Ratio = 1.82 (Total Current Assets 5.87b / Total Current Liabilities 3.22b)
Debt / Equity = 2.52 (Debt 9.95b / totalStockholderEquity, last quarter 3.95b)
Debt / EBITDA = 4.19 (Net Debt 7.46b / EBITDA 1.78b)
Debt / FCF = 6.72 (Net Debt 7.46b / FCF TTM 1.11b)
Total Stockholder Equity = 3.76b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.98% (Net Income 1.25b / Total Assets 12.9b)
RoE = 33.13% (Net Income TTM 1.25b / Total Stockholder Equity 3.76b)
RoCE = 24.12% (EBIT 1.27b / Capital Employed (Equity 3.76b + L.T.Debt 1.49b))
RoIC = 9.79% (NOPAT 928.5m / Invested Capital 9.49b)
WACC = 4.78% (E(7.91b)/V(17.9b) * Re(9.94%) + D(9.95b)/V(17.9b) * Rd(0.93%) * (1-Tc(0.27)))
Discount Rate = 9.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -70.16 | Cagr: -1.40%
[DCF] Terminal Value 77.97% ; FCFF base≈973.6m ; Y1≈1.12b ; Y5≈1.64b
[DCF] Fair Price = 49.12 (EV 24.7b - Net Debt 7.46b = Equity 17.3b / Shares 351.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 55.14 | EPS CAGR: 68.58% | SUE: 0.28 | # QB: 0
Revenue Correlation: 90.53 | Revenue CAGR: 1.21% | SUE: -0.58 | # QB: 0
EPS current Quarter (2026-10-31): EPS=0.79 | Chg30d=-2.53% | Revisions=-44% | Analysts=16
EPS current Year (2027-01-31): EPS=2.41 | Chg30d=+3.13% | Revisions=+74% | GrowthEPS=+13.1% | GrowthRev=+1.2%
EPS next Year (2028-01-31): EPS=2.64 | Chg30d=+3.07% | Revisions=+35% | GrowthEPS=+9.4% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +28% (up=28, down=15)