| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 4/6 |
GPS Overview
The Gap, Inc. operates as an apparel retail company.
Gap Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$21.76 |
| 52 Week High | US$19.10 |
| 52 Week Low | US$37.63 |
| Beta | 1.64 |
| 1 Month Change | -11.47% |
| 3 Month Change | -24.81% |
| 1 Year Change | 12.34% |
| 3 Year Change | -20.29% |
| 5 Year Change | -19.14% |
| Change since IPO | 1,016.43% |
Recent News & Updates
Is Gap (NYSE:GPS) Using Too Much Debt?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
The Gap Inc. Is A Hold
While I think the dividend is sustainable, there's little reason for me to get excited at current prices. For that reason, I'm neither adding nor selling. There is some cause for optimism in my view, as the company did much better than both HY 2020 and HY 2019. My earlier short put trade was a harrowing, but ultimately profitable, experience. This experience reminds me that emotional makeup is very important to success here.
When Should You Buy The Gap, Inc. (NYSE:GPS)?
The Gap, Inc. ( NYSE:GPS ), is not the largest company out there, but it saw significant share price movement during...
Shareholder Returns
| GPS | US Specialty Retail | US Market | |
|---|---|---|---|
| 7D | -5.4% | -0.1% | -0.3% |
| 1Y | 12.3% | 48.6% | 37.0% |
Return vs Industry: GPS underperformed the US Specialty Retail industry which returned 45.7% over the past year.
Return vs Market: GPS underperformed the US Market which returned 33.4% over the past year.
Price Volatility
| GPS volatility | |
|---|---|
| GPS Beta | 1.64 |
| Industry Beta | 1.55 |
| Market Beta | 1 |
Stable Share Price: GPS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: GPS's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1969 | 117,000 | Sonia Syngal | https://www.gapinc.com |
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.
Gap Fundamentals Summary
| GPS fundamental statistics | |
|---|---|
| Market Cap | US$8.18b |
| Earnings (TTM) | US$753.00m |
| Revenue (TTM) | US$16.62b |
10.9x
P/E Ratio0.5x
P/S RatioIs GPS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GPS income statement (TTM) | |
|---|---|
| Revenue | US$16.62b |
| Cost of Revenue | US$8.50b |
| Gross Profit | US$8.12b |
| Expenses | US$7.36b |
| Earnings | US$753.00m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.00 |
| Gross Margin | 48.83% |
| Net Profit Margin | 4.53% |
| Debt/Equity Ratio | 73.5% |
How did GPS perform over the long term?
See historical performance and comparisonDividends
2.2%
Current Dividend Yield6%
Payout RatioValuation
Is Gap undervalued compared to its fair value and its price relative to the market?
8.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GPS ($21.76) is trading below our estimate of fair value ($23.76)
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 poor value based on its PE Ratio (10.9x) compared to the US Specialty Retail industry average (9.9x).
PE vs Market: GPS is good value based on its PE Ratio (10.9x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: GPS is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: GPS is good value based on its PB Ratio (2.7x) compared to the US Specialty Retail industry average (2.9x).
Future Growth
How is Gap forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
10.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GPS's forecast earnings growth (10% per year) is above the savings rate (2%).
Earnings vs Market: GPS's earnings (10% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: GPS's earnings are forecast to grow, but not significantly.
Revenue vs Market: GPS's revenue (2.3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: GPS's revenue (2.3% 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 high in 3 years time (26%)
Past Performance
How has Gap performed over the past 5 years?
-29.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GPS has high quality earnings.
Growing Profit Margin: GPS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: GPS's earnings have declined by 29.8% per year over the past 5 years.
Accelerating Growth: GPS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: GPS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (158.2%).
Return on Equity
High ROE: GPS's Return on Equity (24.9%) is considered high.
Financial Health
How is Gap's financial position?
Financial Position Analysis
Short Term Liabilities: GPS's short term assets ($6.2B) exceed its short term liabilities ($3.7B).
Long Term Liabilities: GPS's short term assets ($6.2B) do not cover its long term liabilities ($7.1B).
Debt to Equity History and Analysis
Debt Level: GPS's debt to equity ratio (73.5%) is considered high.
Reducing Debt: GPS's debt to equity ratio has increased from 68.1% to 73.5% over the past 5 years.
Debt Coverage: GPS's debt is well covered by operating cash flow (50.3%).
Interest Coverage: GPS's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Dividend
What is Gap current dividend yield, its reliability and sustainability?
2.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GPS's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: GPS's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: GPS's dividend payments have been volatile 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 low payout ratio (6%), GPS's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GPS's dividends in 3 years are forecast to be well covered by earnings (25.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Sonia Syngal (51 yo)
1.58yrs
Tenure
US$21,905,521
Compensation
Ms. Sonia Syngal serves as Chief Executive Officer, President and Director at The Gap, Inc. since March 23, 2020. Ms. Syngal served as the Chief Executive Officer and President of Old Navy from April 2016...
CEO Compensation Analysis
Compensation vs Market: Sonia's total compensation ($USD21.91M) is above average for companies of similar size in the US market ($USD6.35M).
Compensation vs Earnings: Sonia's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GPS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: GPS's board of directors are considered experienced (4.8 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 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$8.184b
- Shares outstanding: 376.11m
- Website: https://www.gapinc.com
Number of Employees
Location
- The Gap, Inc.
- Two Folsom Street
- San Francisco
- California
- 94105
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/27 22:57 |
| End of Day Share Price | 2021/10/27 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2021/01/30 |
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.