NYSE:GPS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-6.8%

NYSE:GPS

-2.0%

US Specialty Retail

-0.02%

US Market


1 Year Return

-34.1%

NYSE:GPS

-5.2%

US Specialty Retail

1.6%

US Market

GPS underperformed the Specialty Retail industry which returned -4.3% over the past year.

GPS underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

GPSIndustryMarket
7 Day-6.8%-2.0%-0.02%
30 Day7.6%7.0%2.7%
90 Day-0.9%2.3%1.4%
1 Year-31.4%-34.1%-3.7%-5.2%3.8%1.6%
3 Year-10.8%-20.2%35.0%28.1%45.2%35.8%
5 Year-50.7%-58.4%51.8%38.3%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Gap's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Gap's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Gap is good value based on earnings compared to the US Specialty Retail industry average.

Gap is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Gap earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Gap is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

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

-10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Gap's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

Gap's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Gap's revenue growth is positive but not above the United States of America market average.

Gap's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Gap's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Gap is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Gap performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Gap's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Gap's 1-year earnings growth exceeds its 5-year average (4.7% vs -6%)

Gap's earnings growth has not exceeded the US Specialty Retail industry average in the past year (4.7% vs 8.3%).


Return on Equity

Gap has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Gap used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Gap's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Gap's financial position?


Financial Position Analysis

Gap is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Gap's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Gap's level of debt (34.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (47.3% vs 34.5% today).

Debt is well covered by operating cash flow (113.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 31.4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.54%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Gap before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Gap's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Gap's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Gap's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Art Peck (63yo)

4.6yrs

Tenure

US$20,793,939

Compensation

Mr. Arthur Peck, also known as Art, has been the Chief Executive Officer of The Gap, Inc. since February 1, 2015 and has been its President and Director since February 2015. Mr. Peck served as the Presiden ...


CEO Compensation Analysis

Art's remuneration is higher than average for companies of similar size in United States of America.

Art's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

55yo

Average Age

The tenure for the Gap management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

63yo

Average Age

The tenure for the Gap board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$311,87109 Mar 19
Sonia Syngal
EntityIndividual
Shares11,764
Max PriceUS$26.51

Ownership Breakdown


Management Team

  • Neil Fiske (57yo)

    President & CEO of Gap Brand

    • Tenure: 1.3yrs
    • Compensation: US$8.02m
  • Mark Breitbard (51yo)

    President & CEO of Banana Republic

    • Tenure: 2.3yrs
    • Compensation: US$4.80m
  • Art Peck (63yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$20.79m
  • Teri List-Stoll (56yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$7.50m
  • Nancy Green

    President & Chief Creative Officer of Old Navy

    • Tenure: 0yrs
  • Julie Gruber (53yo)

    Executive VP

    • Tenure: 3.6yrs
  • Brent Hyder (54yo)

    Executive VP & Chief People Officer

    • Tenure: 1.6yrs
    • Compensation: US$4.76m
  • Tina Romani

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Sally Gilligan

    Chief Information Officer

    • Tenure: 1.7yrs
  • Alegra O'Hare

    Chief Marketing Officer

    • Tenure: 0.5yrs

Board Members

  • Jorge Montoya (72yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$275.97k
  • Mayo Shattuck (65yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$298.97k
  • Bob Fisher (64yo)

    Non-Executive Chairman

    • Tenure: 4.6yrs
    • Compensation: US$477.97k
  • Bob Martin (70yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$289.97k
  • Bella Goren (58yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$265.97k
  • Tracy Gardner (55yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$243.97k
  • Art Peck (63yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$20.79m
  • Bill Fisher (62yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$254.97k
  • Chris O’Neill (46yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$317.04k
  • Lexi Reese

    Director

    • Tenure: 0.8yrs
    • Compensation: US$179.99k

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$6.742b
  • Shares outstanding: 375.79m
  • 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 Analysis2019/09/18 23:36
End of Day Share Price2019/09/18 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.