(GAP) The Gap - Ratings and Ratios
Apparel, Accessories, PersonalCareProducts, Clothing
GAP EPS (Earnings per Share)
GAP Revenue
Description: GAP The Gap
The Gap, Inc. is a leading apparel retail company operating multiple brands, including Old Navy, Gap, Banana Republic, and Athleta, offering a wide range of apparel, accessories, and personal care products for men, women, and children. The companys diverse product portfolio includes adult apparel and accessories, as well as lifestyle products for yoga, training, travel, and recovery activities, primarily targeting women and girls.
From a sales channel perspective, The Gap, Inc. has a strong presence both online and offline, with products available through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. The company has a significant global footprint, with franchise agreements in place to operate its brands in various regions, including Asia, Europe, Latin America, the Middle East, and Africa.
To further analyze the companys performance, some key performance indicators (KPIs) to consider include revenue growth, same-store sales (SSS) growth, gross margin ratio, and operating margin ratio. Additionally, metrics such as inventory turnover, accounts receivable turnover, and days sales outstanding (DSO) can provide insights into the companys operational efficiency. The companys brand portfolio and pricing strategy are also crucial in maintaining competitiveness in the apparel retail market.
From a financial perspective, The Gap, Inc.s market capitalization stands at approximately $7.8 billion, with a price-to-earnings (P/E) ratio of 9.07 and a forward P/E ratio of 9.46, indicating a relatively low valuation compared to its earnings. The companys return on equity (RoE) is 27.86%, suggesting a decent return for shareholders. Further analysis of the companys financial statements and ratios, such as debt-to-equity and interest coverage ratio, can provide a more comprehensive understanding of its financial health and stability.
GAP Stock Overview
| Market Cap in USD | 8,957m |
| Sub-Industry | Apparel Retail |
| IPO / Inception | 1987-07-23 |
GAP Stock Ratings
| Growth Rating | 46.6% |
| Fundamental | 74.3% |
| Dividend Rating | 62.7% |
| Return 12m vs S&P 500 | -3.47% |
| Analyst Rating | 3.63 of 5 |
GAP Dividends
| Dividend Yield 12m | 2.83% |
| Yield on Cost 5y | 4.35% |
| Annual Growth 5y | 19.81% |
| Payout Consistency | 95.1% |
| Payout Ratio | 27.6% |
GAP Growth Ratios
| Growth Correlation 3m | 21.2% |
| Growth Correlation 12m | 0.9% |
| Growth Correlation 5y | 18% |
| CAGR 5y | 42.26% |
| CAGR/Max DD 3y | 0.83 |
| CAGR/Mean DD 3y | 2.01 |
| Sharpe Ratio 12m | -0.45 |
| Alpha | 4.64 |
| Beta | 0.744 |
| Volatility | 47.18% |
| Current Volume | 11429.7k |
| Average Volume 20d | 11042.5k |
| Stop Loss | 21.8 (-4.8%) |
| Signal | -1.43 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (889.0m TTM) > 0 and > 6% of Revenue (6% = 910.0m TTM) |
| FCFTA 0.06 (>2.0%) and ΔFCFTA -3.92pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 14.37% (prev 10.45%; Δ 3.93pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 1.22b > Net Income 889.0m (YES >=105%, WARN >=100%) |
| Net Debt (3.40b) to EBITDA (1.76b) ratio: 1.93 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.68 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (379.0m) change vs 12m ago -1.04% (target <= -2.0% for YES) |
| Gross Margin 41.09% (prev 40.91%; Δ 0.17pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 128.2% (prev 131.8%; Δ -3.61pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 14.41 (EBITDA TTM 1.76b / Interest Expense TTM 88.0m) >= 6 (WARN >= 3) |
Altman Z'' 3.20
| (A) 0.18 = (Total Current Assets 5.38b - Total Current Liabilities 3.20b) / Total Assets 12.15b |
| (B) 0.27 = Retained Earnings (Balance) 3.33b / Total Assets 12.15b |
| (C) 0.11 = EBIT TTM 1.27b / Avg Total Assets 11.83b |
| (D) 0.39 = Book Value of Equity 3.38b / Total Liabilities 8.71b |
| Total Rating: 3.20 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.25
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 8.89% = 4.45 |
| 3. FCF Margin 5.07% = 1.27 |
| 4. Debt/Equity 0.62 = 2.31 |
| 5. Debt/Ebitda 1.20 = 1.46 |
| 6. ROIC - WACC 12.46% = 12.50 |
| 7. RoE 27.04% = 2.25 |
| 8. Rev. Trend -13.55% = -0.68 |
| 9. Rev. CAGR -2.90% = -0.48 |
| 10. EPS Trend 46.78% = 1.17 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of GAP shares?
Over the past week, the price has changed by -3.78%, over one month by +12.04%, over three months by +6.70% and over the past year by +14.92%.
Is The Gap a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of GAP is around 22.72 USD . This means that GAP is currently overvalued and has a potential downside of -0.79%.
Is GAP a buy, sell or hold?
- Strong Buy: 4
- Buy: 4
- Hold: 11
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the GAP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 24.4 | 6.5% |
| Analysts Target Price | 24.4 | 6.5% |
| ValueRay Target Price | 25.1 | 9.4% |
Last update: 2025-09-10 02:42
GAP Fundamental Data Overview
CCE Cash And Equivalents = 2.43b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 10.4052
P/E Forward = 11.4943
P/S = 0.5906
P/B = 2.6091
P/EG = 2.1527
Beta = 2.074
Revenue TTM = 15.17b USD
EBIT TTM = 1.27b USD
EBITDA TTM = 1.76b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 631.0m USD (from shortTermDebt, last quarter)
Debt = 2.12b USD (Calculated: Short Term 631.0m + Long Term 1.49b)
Net Debt = 3.40b USD (from netDebt column, last quarter)
Enterprise Value = 8.65b USD (8.96b + Debt 2.12b - CCE 2.43b)
Interest Coverage Ratio = 14.41 (Ebit TTM 1.27b / Interest Expense TTM 88.0m)
FCF Yield = 8.89% (FCF TTM 769.0m / Enterprise Value 8.65b)
FCF Margin = 5.07% (FCF TTM 769.0m / Revenue TTM 15.17b)
Net Margin = 5.86% (Net Income TTM 889.0m / Revenue TTM 15.17b)
Gross Margin = 41.09% ((Revenue TTM 15.17b - Cost of Revenue TTM 8.94b) / Revenue TTM)
Tobins Q-Ratio = 2.55 (Enterprise Value 8.65b / Book Value Of Equity 3.38b)
Interest Expense / Debt = 1.08% (Interest Expense 23.0m / Debt 2.12b)
Taxrate = 25.77% (293.0m / 1.14b)
NOPAT = 941.2m (EBIT 1.27b * (1 - 25.77%))
Current Ratio = 1.68 (Total Current Assets 5.38b / Total Current Liabilities 3.20b)
Debt / Equity = 0.62 (Debt 2.12b / last Quarter total Stockholder Equity 3.43b)
Debt / EBITDA = 1.20 (Net Debt 3.40b / EBITDA 1.76b)
Debt / FCF = 2.76 (Debt 2.12b / FCF TTM 769.0m)
Total Stockholder Equity = 3.29b (last 4 quarters mean)
RoA = 7.32% (Net Income 889.0m, Total Assets 12.15b )
RoE = 27.04% (Net Income TTM 889.0m / Total Stockholder Equity 3.29b)
RoCE = 26.53% (Ebit 1.27b / (Equity 3.29b + L.T.Debt 1.49b))
RoIC = 19.70% (NOPAT 941.2m / Invested Capital 4.78b)
WACC = 7.24% (E(8.96b)/V(11.08b) * Re(8.76%)) + (D(2.12b)/V(11.08b) * Rd(1.08%) * (1-Tc(0.26)))
Shares Correlation 3-Years: 68.78 | Cagr: 0.32%
Discount Rate = 8.76% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 70.43% ; FCFE base≈933.4m ; Y1≈703.2m ; Y5≈423.4m
Fair Price DCF = 19.04 (DCF Value 7.06b / Shares Outstanding 371.0m; 5y FCF grow -29.23% → 3.0% )
Revenue Correlation: -13.55 | Revenue CAGR: -2.90%
Rev Growth-of-Growth: 1.45
EPS Correlation: 46.78 | EPS CAGR: 0.0%
EPS Growth-of-Growth: -60.54
Additional Sources for GAP Stock
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