Market Cap
US$8.1b
Last Updated
2020/11/26 23:03 UTC
Data Sources
Company Financials +
Executive Summary
The Gap, Inc. operates as an apparel retail company worldwide. More Details
Rewards
Risk Analysis
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
| GPS | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.5% | 2.0% | 2.1% |
| 30 Day | 6.1% | 7.2% | 8.1% |
| 90 Day | 23.1% | 6.5% | 6.0% |
| 1 Year | 29.5%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
8 months ago | Simply Wall St
A Sliding Share Price Has Us Looking At The Gap, Inc.'s (NYSE:GPS) P/E Ratio8 months ago | Simply Wall St
Does The Gap, Inc. (NYSE:GPS) Create Value For Shareholders?9 months ago | Simply Wall St
How Many The Gap, Inc. (NYSE:GPS) Shares Have Insiders Sold, In The Last Year?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 0.67yr | US$306.24k | 0.016% $ 1.3m | |
| CEO, President & Director | 0.67yr | US$4.77m | 0.015% $ 1.2m | |
| Chief Legal | 4.75yrs | US$2.70m | 0.00065% $ 52.5k | |
| President & CEO of Gap Brand | 3.5yrs | US$4.96m | 0.020% $ 1.6m | |
| Executive VP & CFO | 0.67yr | no data | 0.0017% $ 134.9k | |
| Chief Operating Officer | 0.67yr | no data | 0.012% $ 946.1k | |
| Chief Digital & Technology Officer | 0.67yr | no data | 0.0039% $ 311.0k | |
| Chief Information Officer & CSO | 2.83yrs | no data | no data | |
| Senior Director of Investor Relations | no data | no data | no data | |
| Chief Marketing Officer | 1.67yrs | no data | no data | |
| Chief People Officer | 0.67yr | no data | 0.0018% $ 145.4k | |
| Senior VP & General Counsel | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 0.67yr | US$306.24k | 0.016% $ 1.3m | |
| CEO, President & Director | 0.67yr | US$4.77m | 0.015% $ 1.2m | |
| Independent Director | 16.67yrs | US$273.86k | 0.012% $ 1.0m | |
| Independent Director | 18.83yrs | US$298.99k | 0.031% $ 2.5m | |
| Independent Director | 30.83yrs | US$1.96m | 2.74% $ 221.5m | |
| Independent Director | 0.67yr | no data | 0% $ 0 | |
| Independent Director | 0.67yr | no data | 0% $ 0 | |
| Independent Director | 9.25yrs | US$265.99k | 0.0084% $ 681.9k | |
| Independent Director | 5yrs | US$255.99k | 0.0050% $ 408.0k | |
| Independent Director | 11yrs | US$254.99k | 10.35% $ 836.0m | |
| Independent Director | 2yrs | US$185.63k | 8.91% $ 720.0m | |
| Independent Director | 2.75yrs | US$252.87k | 0% $ 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
| 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 |
| 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, Ath...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:03 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/02/01 |
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.