(GAP) The Gap - Overview
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NYSE (USA) | Market Cap: 9.134m USD | Total Return: 2.8% in 12m
Avg Turnover: 182M
EPS Trend: 71.1%
Qual. Beats: 1
Rev. Trend: 36.4%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
The Gap, Inc. is a global apparel retailer managing a portfolio of distinct brands including Old Navy, Gap, Banana Republic, and Athleta. Headquartered in San Francisco, the company distributes clothing, accessories, and personal care products through a multichannel network of company-owned stores, franchise locations, and e-commerce platforms across North America, Asia, and Europe.
Operating within the apparel retail sector, the company utilizes a specialty retail business model that relies on brand segmentation to target diverse consumer demographics ranging from value-conscious shoppers to premium and athletic segments. This sector is characterized by high inventory turnover requirements and significant exposure to shifting consumer discretionary spending patterns. For deeper insights into these brand valuations, consult ValueRay.
The company further extends its global reach through strategic licensing partnerships and franchise agreements in Latin America, Africa, and the Middle East. This capital-light expansion strategy allows the firm to maintain international brand presence while mitigating the operational costs associated with direct store ownership in emerging markets.
- Old Navy comparable store sales growth dictates overall corporate revenue performance
- Inventory management and supply chain efficiency drive gross margin expansion
- Athleta market share gains in activewear segment influence long-term valuation
- Discretionary consumer spending levels impact traffic across core value brands
- Strategic store fleet rationalization and digital transformation reduce operating expenses
| Net Income: 816.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -1.02 > 1.0 |
| NWC/Revenue: 16.12% < 20% (prev 12.91%; Δ 3.21% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.59b > Net Income 816.0m |
| Net Debt (7.11b) to EBITDA (1.67b): 4.27 < 3 |
| Current Ratio: 1.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (384.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 40.79% > 18% (prev 41.28%; Δ -0.49% > 0.5%) |
| Asset Turnover: 125.3% > 50% (prev 126.9%; Δ -1.58% > 0%) |
| Interest Coverage Ratio: 16.04 > 6 (EBIT TTM 1.17b / Interest Expense TTM 73.0m) |
| A: 0.20 (Total Current Assets 5.78b - Total Current Liabilities 3.30b) / Total Assets 12.6b |
| B: 0.29 (Retained Earnings 3.61b / Total Assets 12.6b) |
| C: 0.10 (EBIT TTM 1.17b / Avg Total Assets 12.3b) |
| D: 0.43 (Book Value of Equity 3.80b / Total Liabilities 8.83b) |
| Altman-Z'' = 3.31 = A |
| DSRI: 0.95 (Receivables 316.0m/328.0m, Revenue 15.4b/15.1b) |
| GMI: 1.01 (GM 41.28% / 40.79%) |
| AQI: 0.90 (AQ_t 0.07 / AQ_t-1 0.08) |
| SGI: 1.02 (Revenue 15.4b / 15.1b) |
| TATA: -0.06 (NI 816.0m - CFO 1.59b) / TA 12.6b) |
| Beneish M = -3.11 (Cap -4..+1) = AA |
As of June 06, 2026, the stock is trading at USD 21.56 with a total of 7,177,897 shares traded.
Over the past week, the price has changed by +1.94%,
over one month by -8.80%,
over three months by -20.17% and
over the past year by +2.78%.
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 | 30.3 | 40.5% |
P/E Trailing = 11.7371
P/E Forward = 10.8696
P/S = 0.5944
P/B = 2.4029
P/EG = 1.4649
Revenue TTM = 15.4b USD
EBIT TTM = 1.17b USD
EBITDA TTM = 1.67b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 634.0m USD (from shortTermDebt, last quarter)
Debt = 9.73b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.12b
Net Debt = 7.11b USD (calculated: Debt 9.73b - CCE 2.62b)
Enterprise Value = 16.2b USD (9.13b + Debt 9.73b - CCE 2.62b)
Interest Coverage Ratio = 16.04 (Ebit TTM 1.17b / Interest Expense TTM 73.0m)
EV/FCF = 16.65x (Enterprise Value 16.2b / FCF TTM 976.0m)
FCF Yield = 6.01% (FCF TTM 976.0m / Enterprise Value 16.2b)
FCF Margin = 6.35% (FCF TTM 976.0m / Revenue TTM 15.4b)
Net Margin = 5.31% (Net Income TTM 816.0m / Revenue TTM 15.4b)
Gross Margin = 40.79% ((Revenue TTM 15.4b - Cost of Revenue TTM 9.10b) / Revenue TTM)
Gross Margin QoQ = 38.10% (prev 42.36%)
Tobins Q-Ratio = 1.29 (Enterprise Value 16.2b / Total Assets 12.6b)
Interest Expense / Debt = 0.75% (Interest Expense 73.0m / Debt 9.73b)
Taxrate = 27.92% (316.0m / 1.13b)
NOPAT = 844.1m (EBIT 1.17b * (1 - 27.92%))
Current Ratio = 1.75 (Total Current Assets 5.78b / Total Current Liabilities 3.30b)
Debt / Equity = 2.56 (Debt 9.73b / totalStockholderEquity, last quarter 3.80b)
Debt / EBITDA = 4.27 (Net Debt 7.11b / EBITDA 1.67b)
Debt / FCF = 7.29 (Net Debt 7.11b / FCF TTM 976.0m)
Total Stockholder Equity = 3.55b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.66% (Net Income 816.0m / Total Assets 12.6b)
RoE = 22.98% (Net Income TTM 816.0m / Total Stockholder Equity 3.55b)
RoCE = 23.22% (EBIT 1.17b / Capital Employed (Equity 3.55b + L.T.Debt 1.49b))
RoIC = 9.18% (NOPAT 844.1m / Invested Capital 9.20b)
WACC = 5.71% (E(9.13b)/V(18.9b) * Re(11.22%) + D(9.73b)/V(18.9b) * Rd(0.75%) * (1-Tc(0.28)))
Discount Rate = 11.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 30.27 | Cagr: 1.06%
[DCF] Terminal Value 74.58% ; FCFF base≈1.00b ; Y1≈954.3m ; Y5≈910.8m
[DCF] Fair Price = 19.75 (EV 14.3b - Net Debt 7.11b = Equity 7.22b / Shares 365.3m; r=8.35% [WACC [floored]]; 5y FCF grow -6.06% → 2.50% )
EPS Correlation: 71.05 | EPS CAGR: 118.3% | SUE: 4.0 | # QB: 1
Revenue Correlation: 36.36 | Revenue CAGR: 0.47% | SUE: -0.07 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.52 | Chg30d=+0.54% | Revisions=+14% | Analysts=10
EPS next Quarter (2026-10-31): EPS=0.78 | Chg30d=-1.15% | Revisions=-33% | Analysts=10
EPS current Year (2027-01-31): EPS=2.49 | Chg30d=-0.20% | Revisions=-14% | GrowthEPS=+16.7% | GrowthRev=+2.4%
EPS next Year (2028-01-31): EPS=2.61 | Chg30d=-0.17% | Revisions=-33% | GrowthEPS=+5.1% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: -33%