NYSE:GPS

Stock Analysis Report

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Executive Summary

The Gap, Inc. operates as an apparel retail company worldwide. More Details


Snowflake Analysis

Moderate growth potential with imperfect 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GPS's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-11.5%

GPS

2.0%

US Specialty Retail

2.1%

US Market


1 Year Return

27.7%

GPS

21.4%

US Specialty Retail

19.8%

US Market

Return vs Industry: GPS exceeded the US Specialty Retail industry which returned 21.2% over the past year.

Return vs Market: GPS exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

GPSIndustryMarket
7 Day-11.5%2.0%2.1%
30 Day6.1%7.2%8.1%
90 Day23.1%6.5%6.0%
1 Year29.5%27.7%22.5%21.4%22.5%19.8%
3 Year-26.8%-33.1%78.3%70.8%46.5%36.8%
5 Year-2.2%-17.3%83.1%69.2%96.9%75.3%

Long-Term 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

Valuation

Is Gap undervalued compared to its fair value and its price relative to the market?

3.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GPS ($21.6) is trading above our estimate of fair value ($11.75)

Significantly Below Fair Value: GPS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GPS is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: GPS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GPS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GPS is overvalued based on its PB Ratio (3.4x) compared to the US Specialty Retail industry average (2.3x).


Next Steps

Future Growth

How is Gap forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

72.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: GPS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GPS's is expected to become profitable in the next 3 years.

Revenue vs Market: GPS's revenue (5.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: GPS's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPS's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has Gap performed over the past 5 years?

-30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPS is currently unprofitable.

Growing Profit Margin: GPS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GPS is unprofitable, and losses have increased over the past 5 years at a rate of 30.3% per year.

Accelerating Growth: Unable to compare GPS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GPS is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (14.3%).


Return on Equity

High ROE: GPS has a negative Return on Equity (-45.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gap's financial position?


Financial Position Analysis

Short Term Liabilities: GPS's short term assets ($6.4B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: GPS's short term assets ($6.4B) do not cover its long term liabilities ($7.6B).


Debt to Equity History and Analysis

Debt Level: GPS's debt to equity ratio (93.4%) is considered high.

Reducing Debt: GPS's debt to equity ratio has increased from 67.2% to 93.4% over the past 5 years.

Debt Coverage: GPS's debt is well covered by operating cash flow (57.9%).

Interest Coverage: Insufficient data to determine if GPS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Gap current dividend yield, its reliability and sustainability?

1.95%

Forecast Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GPS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GPS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GPS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GPS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GPS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Sonia Syngal (50 yo)

0.67

Tenure

US$4,765,962

Compensation

Ms. Sonia Syngal serves as Chief Executive Officer, President and Director at The Gap, Inc. since March 23, 2020. Ms. Syngal served as the Chief Executive Officer and President of Old Navy since April 2016...


CEO Compensation Analysis

Compensation vs Market: Sonia's total compensation ($USD4.77M) is below average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Sonia's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bobby Martin
Executive Chairman0.67yrUS$306.24k0.016%
$ 1.3m
Sonia Syngal
CEO, President & Director0.67yrUS$4.77m0.015%
$ 1.2m
Julie Gruber
Chief Legal4.75yrsUS$2.70m0.00065%
$ 52.5k
Mark Breitbard
President & CEO of Gap Brand3.5yrsUS$4.96m0.020%
$ 1.6m
Katrina O'Connell
Executive VP & CFO0.67yrno data0.0017%
$ 134.9k
Shawn Curran
Chief Operating Officer0.67yrno data0.012%
$ 946.1k
John Strain
Chief Digital & Technology Officer0.67yrno data0.0039%
$ 311.0k
Sally Gilligan
Chief Information Officer & CSO2.83yrsno datano data
Tina Romani
Senior Director of Investor Relationsno datano datano data
Alegra O'Hare
Chief Marketing Officer1.67yrsno datano data
Sheila Peters
Chief People Officer0.67yrno data0.0018%
$ 145.4k
Thomas Lima
Senior VP & General Counselno datano datano data

0.7yrs

Average Tenure

52yo

Average Age

Experienced Management: GPS's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bobby Martin
Executive Chairman0.67yrUS$306.24k0.016%
$ 1.3m
Sonia Syngal
CEO, President & Director0.67yrUS$4.77m0.015%
$ 1.2m
Jorge Montoya
Independent Director16.67yrsUS$273.86k0.012%
$ 1.0m
Mayo Shattuck
Independent Director18.83yrsUS$298.99k0.031%
$ 2.5m
Robert Fisher
Independent Director30.83yrsUS$1.96m2.74%
$ 221.5m
Amy Miles
Independent Director0.67yrno data0%
$ 0
Elizabeth Smith
Independent Director0.67yrno data0%
$ 0
Isabella Goren
Independent Director9.25yrsUS$265.99k0.0084%
$ 681.9k
Tracy Gardner
Independent Director5yrsUS$255.99k0.0050%
$ 408.0k
William Fisher
Independent Director11yrsUS$254.99k10.35%
$ 836.0m
John Fisher
Independent Director2yrsUS$185.63k8.91%
$ 720.0m
Christopher O'Neill
Independent Director2.75yrsUS$252.87k0%
$ 0

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: GPS's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GPS insiders have only sold shares 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$8.079b
  • Shares outstanding: 374.03m
  • Website: https://www.gapinc.com

Number of Employees


Location

  • The Gap, Inc.
  • 2 Folsom Street
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPSNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1976
GPS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1976
GAPDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1976
0ITSLSE (London Stock Exchange)YesCommon StockGBUSDJul 1976
GPSI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.05BRBRLApr 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, Ath...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:03
End of Day Share Price2020/11/25 00:00
Earnings2020/10/31
Annual Earnings2020/02/01


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.