(GAP) The Gap - NYSE
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NYSE (USA) | Market Cap: 7.880m USD | Total Return: 2% in 12m
Avg Turnover: 188M
EPS Trend: 71.1%
Qual. Beats: 1
Rev. Trend: 82.9%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
The Gap, Inc. is a multi-brand apparel retailer headquartered in San Francisco, California, incorporated in 1969. The company operates four primary brands-Old Navy, Gap, Banana Republic, and Athleta-selling apparel, accessories, and personal care products for men, women, and children. Its distribution model combines company-operated stores, franchise locations, e-commerce websites, third-party arrangements, and licensing partnerships, with franchise operations extending across Asia, Europe, Latin America, the Middle East, and Africa.
The Gap, Inc. trades on the NYSE under the ticker GAP and is classified within the Consumer Discretionary sector, specifically the Apparel Retail sub-industry. The apparel retail sector is characterized by intense competition, shifting consumer preferences, and sensitivity to macroeconomic conditions, while the companys brand portfolio strategy targets distinct customer segments across value, mainstream, and premium price points.
- Athleta comp sales decelerate amid Lululemon competition
- Old Navy back-to-school demand drives consolidated comparable sales growth
- Asia-sourced apparel tariff exposure pressures gross margins
| Net Income: 962.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.92 > 1.0 |
| NWC/Revenue: 15.18% < 20% (prev 13.39%; Δ 1.79% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.95b > Net Income 962.0m |
| Net Debt (7.23b) to EBITDA (1.84b): 3.92 < 3 |
| Current Ratio: 1.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (378.0m) vs 12m ago -1.05% < -2% |
| Gross Margin: 40.50% > 18% (prev 41.41%; Δ -0.91% > 0.5%) |
| Asset Turnover: 129.9% > 50% (prev 131.1%; Δ -1.15% > 0%) |
| Interest Coverage Ratio: 14.59 > 6 (EBIT TTM 1.34b / Interest Expense TTM 92.0m) |
| A: 0.19 (Total Current Assets 5.24b - Total Current Liabilities 2.90b) / Total Assets 12.1b |
| B: 0.30 (Retained Earnings 3.60b / Total Assets 12.1b) |
| C: 0.11 (EBIT TTM 1.34b / Avg Total Assets 11.9b) |
| D: 0.43 (Book Value of Equity 3.65b / Total Liabilities 8.48b) |
| Altman-Z'' = 3.44 = A |
As of June 20, 2026, the stock is trading at USD 21.15 with a total of 10,044,100 shares traded.
Over the past week, the price has changed by -3.25%,
over one month by +1.78%,
over three months by -11.54% and
over the past year by +1.96%.
The Gap has received a consensus analysts rating of 3.63. Therefore, it is recommended to hold GAP.
- StrongBuy: 4
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 27.3 | 28.9% |
P/E Trailing = 8.6865
P/E Forward = 9.5147
P/S = 0.5117
P/B = 2.1559
P/EG = 1.2827
Revenue TTM = 15.4b USD
EBIT TTM = 1.34b USD
EBITDA TTM = 1.84b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 631.0m USD (from shortTermDebt, last quarter)
Debt = 9.79b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.15b
Net Debt = 7.23b USD (calculated: Debt 9.79b - CCE 2.56b)
Enterprise Value = 15.1b USD (7.88b + Debt 9.79b - CCE 2.56b)
Interest Coverage Ratio = 14.59 (Ebit TTM 1.34b / Interest Expense TTM 92.0m)
EV/FCF = 11.83x (Enterprise Value 15.1b / FCF TTM 1.28b)
FCF Yield = 8.45% (FCF TTM 1.28b / Enterprise Value 15.1b)
FCF Margin = 8.29% (FCF TTM 1.28b / Revenue TTM 15.4b)
Net Margin = 6.25% (Net Income TTM 962.0m / Revenue TTM 15.4b)
Gross Margin = 40.50% ((Revenue TTM 15.4b - Cost of Revenue TTM 9.16b) / Revenue TTM)
Gross Margin QoQ = 40.52% (prev 38.10%)
Tobins Q-Ratio = 1.25 (Enterprise Value 15.1b / Total Assets 12.1b)
Interest Expense / Debt = 0.94% (Interest Expense 92.0m / Debt 9.79b)
Taxrate = 27.07% (357.0m / 1.32b)
NOPAT = 978.8m (EBIT 1.34b * (1 - 27.07%))
Current Ratio = 1.81 (Total Current Assets 5.24b / Total Current Liabilities 2.90b)
Debt / Equity = 2.68 (Debt 9.79b / totalStockholderEquity, last quarter 3.65b)
Debt / EBITDA = 3.92 (Net Debt 7.23b / EBITDA 1.84b)
Debt / FCF = 5.66 (Net Debt 7.23b / FCF TTM 1.28b)
Total Stockholder Equity = 3.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.12% (Net Income 962.0m / Total Assets 12.1b)
RoE = 26.47% (Net Income TTM 962.0m / Total Stockholder Equity 3.63b)
RoCE = 26.18% (EBIT 1.34b / Capital Employed (Equity 3.63b + L.T.Debt 1.49b))
RoIC = 10.76% (NOPAT 978.8m / Invested Capital 9.10b)
WACC = 5.32% (E(7.88b)/V(17.7b) * Re(11.08%) + D(9.79b)/V(17.7b) * Rd(0.94%) * (1-Tc(0.27)))
Discount Rate = 11.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -6.98 | Cagr: 0.24%
[DCF] Terminal Value 77.97% ; FCFF base≈1.12b ; Y1≈1.28b ; Y5≈1.89b
[DCF] Fair Price = 58.75 (EV 28.4b - Net Debt 7.23b = Equity 21.1b / Shares 360.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 71.05 | EPS CAGR: 118.3% | SUE: 4.0 | # QB: 1
Revenue Correlation: 82.90 | Revenue CAGR: 1.06% | SUE: -0.38 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.49 | Chg30d=-5.13% | Revisions=-25% | Analysts=5
EPS next Quarter (2026-10-31): EPS=0.82 | Chg30d=+4.91% | Revisions=+25% | Analysts=5
EPS current Year (2027-01-31): EPS=2.66 | Chg30d=+6.65% | Revisions=+56% | GrowthEPS=+24.7% | GrowthRev=+1.5%
EPS next Year (2028-01-31): EPS=2.65 | Chg30d=+1.41% | Revisions=-14% | GrowthEPS=-0.1% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +56%