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GPS

GapNYSE:GPS Stock Report

Market Cap

US$8.2b

7D

-5.4%

1Y

12.3%

Updated

27 Oct, 2021

Data

Company Financials +
GPS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends4/6

GPS Overview

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

Gap Competitors

TJX Companies

NYSE:TJX

US$77.6b

Ross Stores

NasdaqGS:ROST

US$39.3b

Victoria's Secret

NYSE:VSCO

US$4.5b

American Eagle Outfitters

NYSE:AEO

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Gap
Historical stock prices
Current Share PriceUS$21.76
52 Week HighUS$19.10
52 Week LowUS$37.63
Beta1.64
1 Month Change-11.47%
3 Month Change-24.81%
1 Year Change12.34%
3 Year Change-20.29%
5 Year Change-19.14%
Change since IPO1,016.43%

Recent News & Updates

Sep 25
Is Gap (NYSE:GPS) Using Too Much Debt?

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...

Sep 24

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.

Sep 10
When Should You Buy The Gap, Inc. (NYSE:GPS)?

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

GPSUS Specialty RetailUS Market
7D-5.4%-0.1%-0.3%
1Y12.3%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

Is GPS's price volatile compared to industry and market?
GPS volatility
GPS Beta1.64
Industry Beta1.55
Market Beta1

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

FoundedEmployeesCEOWebsite
1969117,000Sonia Syngalhttps://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

How do Gap's earnings and revenue compare to its market cap?
GPS fundamental statistics
Market CapUS$8.18b
Earnings (TTM)US$753.00m
Revenue (TTM)US$16.62b

10.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GPS income statement (TTM)
RevenueUS$16.62b
Cost of RevenueUS$8.50b
Gross ProfitUS$8.12b
ExpensesUS$7.36b
EarningsUS$753.00m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.00
Gross Margin48.83%
Net Profit Margin4.53%
Debt/Equity Ratio73.5%

How did GPS perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

6%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 22:57
End of Day Share Price2021/10/27 00:00
Earnings2021/07/31
Annual Earnings2021/01/30


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.