Market Cap
US$6.4b
Last Updated
2020/02/23 00:02 UTC
Data Sources
Company Financials +
Executive Summary
The Gap, Inc. operates as an apparel retail company worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -9.3% per year for the next 3 years
Snowflake Analysis
6 star dividend payer with excellent balance sheet.
Similar Companies
Share Price & News
How has Gap's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GPS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.0%
GPS
0.9%
US Specialty Retail
-1.1%
US Market
1 Year Return
-31.1%
GPS
17.7%
US Specialty Retail
17.9%
US Market
Return vs Industry: GPS underperformed the US Specialty Retail industry which returned 17.7% over the past year.
Return vs Market: GPS underperformed the US Market which returned 17.9% over the past year.
Shareholder returns
| GPS | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.0% | 0.9% | -1.1% |
| 30 Day | -3.4% | 2.7% | 1.4% |
| 90 Day | -0.6% | 5.1% | 6.9% |
| 1 Year | -27.5%-31.1% | 19.5%17.7% | 20.3%17.9% |
| 3 Year | -22.2%-30.9% | 44.9%37.9% | 47.8%38.3% |
| 5 Year | -50.5%-59.0% | 48.1%36.1% | 71.9%53.0% |
Price Volatility Vs. Market
How volatile is Gap's share price compared to the market and industry in the last 5 years?
Simply Wall St News
15 hours ago | Simply Wall St
How Many The Gap, Inc. (NYSE:GPS) Shares Have Insiders Sold, In The Last Year?2 weeks ago | Simply Wall St
Key Things To Consider Before Buying The Gap, Inc. (NYSE:GPS) For Its Dividend3 weeks ago | Simply Wall St
Estimating The Intrinsic Value Of The Gap, Inc. (NYSE:GPS)Valuation
Is Gap undervalued compared to its fair value and its price relative to the market?
5.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GPS ($17.06) is trading below our estimate of fair value ($18.04)
Significantly Below Fair Value: GPS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: GPS is good value based on its PE Ratio (7.9x) compared to the Specialty Retail industry average (16.9x).
PE vs Market: GPS is good value based on its PE Ratio (7.9x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: GPS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: GPS is overvalued based on its PB Ratio (1.8x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is Gap forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
-9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPS's earnings are forecast to decline over the next 3 years (-9.3% per year).
Earnings vs Market: GPS's earnings are forecast to decline over the next 3 years (-9.3% per year).
High Growth Earnings: GPS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GPS's revenue is expected to decline over the next 3 years (-0.1% per year).
High Growth Revenue: GPS's revenue is forecast to decline over the next 3 years (-0.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GPS's Return on Equity is forecast to be high in 3 years time (20.6%)
Next Steps
Past Performance
How has Gap performed over the past 5 years?
-5.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPS has high quality earnings.
Growing Profit Margin: GPS's current net profit margins (5%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: GPS's earnings have declined by -5.1% per year over the past 5 years.
Accelerating Growth: GPS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GPS had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (7.9%).
Return on Equity
High ROE: GPS's Return on Equity (22.3%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Gap's financial position?
Financial Position Analysis
Short Term Liabilities: GPS's short term assets ($4.6B) exceed its short term liabilities ($3.2B).
Long Term Liabilities: GPS's short term assets ($4.6B) do not cover its long term liabilities ($7.3B).
Debt to Equity History and Analysis
Debt Level: GPS's debt to equity ratio (34.4%) is considered satisfactory.
Reducing Debt: GPS's debt to equity ratio has reduced from 48.3% to 34.4% over the past 5 years.
Debt Coverage: GPS's debt is well covered by operating cash flow (107.4%).
Interest Coverage: GPS's interest payments on its debt are well covered by EBIT (30.4x coverage).
Balance Sheet
Inventory Level: GPS has a high level of physical assets or inventory.
Debt Coverage by Assets: GPS's debt is covered by short term assets (assets are 3.7x debt).
Next Steps
Dividend
What is Gap's current dividend yield, its reliability and sustainability?
5.69%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: GPS's dividend (5.69%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: GPS's dividend (5.69%) is in the top 25% of dividend payers in the US market (3.73%)
Stability and Growth of Payments
Stable Dividend: GPS's dividends per share have been stable in the past 10 years.
Growing Dividend: GPS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.2%), GPS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GPS's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Bob Fisher (64yo)
0.3yrs
Tenure
US$477,974
Compensation
Mr. Robert J. Fisher, also known as Bob, serves as Chairman, Interim President and Chief Executive Officer at The Gap, Inc. since November 7, 2019. Mr. Fisher served as the Chief Financial Officer at Gap I ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.3yrs | US$477.97k | 12.85% $818.4m | |
| Executive VP & CFO | 3.1yrs | US$7.50m | 0.013% $825.4k | |
| President & CEO of Banana Republic | 2.8yrs | US$4.80m | 0.011% $707.5k | |
| Chief Information Officer | 2.1yrs | no data | no data | |
| Senior Director of Investor Relations | 0yrs | no data | no data | |
| Executive VP | 4yrs | no data | 0.0078% $496.7k | |
| Chief Marketing Officer | 0.9yrs | no data | no data | |
| Executive VP & Chief People Officer | 0yrs | no data | 0.0033% $208.9k | |
| President & Chief Creative Officer of Old Navy | 0yrs | no data | no data | |
| Executive VP of Global Supply Chain & Product Operations | 2.3yrs | no data | 0.0069% $440.1k |
2.3yrs
Average Tenure
55yo
Average Age
Experienced Management: GPS's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 0.3yrs | US$477.97k | 12.85% $818.4m | |
| Independent Director | 15.9yrs | US$275.97k | 0.011% $680.2k | |
| Independent Director | 18.1yrs | US$298.97k | 0.027% $1.7m | |
| Lead Independent Director | 0.3yrs | US$289.97k | 0.014% $882.0k | |
| Independent Director | 8.5yrs | US$265.97k | 0.0062% $395.5k | |
| Independent Director | 4.3yrs | US$243.97k | 0.0028% $179.6k | |
| Independent Director | 10.3yrs | US$254.97k | 10.35% $659.4m | |
| Independent Director | 1.3yrs | US$179.99k | 14.27% $909.1m | |
| Independent Director | 2yrs | US$317.04k | no data | |
| Independent Director | 1.3yrs | US$179.99k | no data |
4.6yrs
Average Tenure
60yo
Average Age
Experienced Board: GPS's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Gap, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Gap, Inc.
- Ticker: GPS
- Exchange: NYSE
- Founded: 1969
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: US$6.368b
- Shares outstanding: 373.30m
- Website: https://www.gapinc.com
Number of Employees
Location
- The Gap, Inc.
- 2 Folsom Street
- San Francisco
- California
- 94105
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GPS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1976 |
| GPS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jul 1976 |
| GAP | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1976 |
| 0ITS | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 1976 |
| GAP | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jul 1976 |
| GPSI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD0.05 | BR | BRL | Apr 2016 |
Biography
The Gap, Inc. operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands. Its products include denim, tees, button-downs, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores in Asia, Europe, Latin America, the Middle East, and Africa. As of February 2, 2019, the company had 3,194 company-operated stores; and 472 franchise stores, as well as e-commerce sites. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:02 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/11/02 |
| Annual Earnings | 2019/02/02 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.