GAP INC/THE (GAP)
US3647601083 - Common Stock
Overall GAP gets a fundamental rating of 6 out of 10. We evaluated GAP against 122 industry peers in the Specialty Retail industry. GAP has only an average score on both its financial health and profitability. GAP is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make GAP suitable for value investing!
1. Profitability
1.1 Basic Checks
GAP had positive earnings in the past year.
In the past year GAP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: GAP reported negative net income in multiple years.
Each year in the past 5 years GAP had a positive operating cash flow.
1.2 Ratios
GAP has a Return On Assets of 6.94%. This is in the better half of the industry: GAP outperforms 76.03% of its industry peers.
With an excellent Return On Equity value of 26.25%, GAP belongs to the best of the industry, outperforming 83.47% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.44%, GAP is doing good in the industry, outperforming 79.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 26.25% | ||
| ROIC | 11.44% |
ROA(3y)1.59%
ROA(5y)0.5%
ROE(3y)6.57%
ROE(5y)0.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.40%, GAP is doing good in the industry, outperforming 78.51% of the companies in the same industry.
GAP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.10%, GAP is in the better half of the industry, outperforming 76.86% of the companies in the same industry.
In the last couple of years the Operating Margin of GAP has declined.
Looking at the Gross Margin, with a value of 41.27%, GAP is in the better half of the industry, outperforming 61.98% of the companies in the same industry.
In the last couple of years the Gross Margin of GAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.1% | ||
| PM (TTM) | 5.4% | ||
| GM | 41.27% |
OM growth 3YN/A
OM growth 5Y-13.49%
PM growth 3YN/A
PM growth 5Y-11.03%
GM growth 3Y4.42%
GM growth 5Y0.36%
2. Health
2.1 Basic Checks
GAP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GAP has been increased compared to 1 year ago.
Compared to 5 years ago, GAP has less shares outstanding
GAP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.73 indicates that GAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GAP (2.73) is better than 62.81% of its industry peers.
The Debt to FCF ratio of GAP is 1.34, which is an excellent value as it means it would take GAP, only 1.34 years of fcf income to pay off all of its debts.
GAP's Debt to FCF ratio of 1.34 is fine compared to the rest of the industry. GAP outperforms 78.51% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that GAP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, GAP perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.14
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.54 indicates that GAP should not have too much problems paying its short term obligations.
GAP's Current ratio of 1.54 is fine compared to the rest of the industry. GAP outperforms 61.16% of its industry peers.
GAP has a Quick Ratio of 1.54. This is a bad value and indicates that GAP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.84, GAP is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
GAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1036.84%, which is quite impressive.
The earnings per share for GAP have been decreasing by -11.20% on average. This is quite bad
GAP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
The Revenue has been decreasing by -2.13% on average over the past years.
EPS 1Y (TTM)1036.84%
EPS 3YN/A
EPS 5Y-11.2%
EPS Q2Q%22.03%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y2.56%
Revenue growth 5Y-2.13%
Sales Q2Q%1.65%
3.2 Future
GAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.94% yearly.
The Revenue is expected to grow by 1.47% on average over the next years.
EPS Next Y40.97%
EPS Next 2Y22.46%
EPS Next 3Y17.59%
EPS Next 5Y14.94%
Revenue Next Year1.25%
Revenue Next 2Y1.46%
Revenue Next 3Y1.74%
Revenue Next 5Y1.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.16, which indicates a very decent valuation of GAP.
Compared to the rest of the industry, the Price/Earnings ratio of GAP indicates a rather cheap valuation: GAP is cheaper than 86.78% of the companies listed in the same industry.
GAP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 11.24, the valuation of GAP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GAP is valued a bit cheaper than 77.69% of the companies in the same industry.
GAP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GAP indicates a rather cheap valuation: GAP is cheaper than 90.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GAP is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
GAP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GAP's earnings are expected to grow with 17.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y22.46%
EPS Next 3Y17.59%
5. Dividend
5.1 Amount
GAP has a Yearly Dividend Yield of 2.51%.
GAP's Dividend Yield is rather good when compared to the industry average which is at 3.43. GAP pays more dividend than 88.43% of the companies in the same industry.
GAP's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of GAP decreases each year by -9.16%.
GAP has been paying a dividend for at least 10 years, so it has a reliable track record.
GAP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.16%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
27.34% of the earnings are spent on dividend by GAP. This is a low number and sustainable payout ratio.
DP27.34%
EPS Next 2Y22.46%
EPS Next 3Y17.59%
GAP INC/THE
NYSE:GAP (12/20/2024, 10:06:46 PM)
After market: 24.25 +0.14 (+0.58%)24.11
+0.23 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners64.55%
Inst Owner ChangeN/A
Ins Owners40.58%
Ins Owner Change1.04%
Market Cap9.09B
Analysts70.83
Price Target28.67 (18.91%)
Short Float %12.22%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Dividend Growth(5Y)-9.16%
DP27.34%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.1%
Min EPS beat(2)23.43%
Max EPS beat(2)32.76%
EPS beat(4)4
Avg EPS beat(4)89.88%
Min EPS beat(4)23.43%
Max EPS beat(4)188.17%
EPS beat(8)7
Avg EPS beat(8)108.03%
EPS beat(12)10
Avg EPS beat(12)10201.3%
EPS beat(16)13
Avg EPS beat(16)7718.13%
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)1.47%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.55%
Max Revenue beat(4)2.08%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)5
Avg Revenue beat(12)0.46%
Revenue beat(16)7
Avg Revenue beat(16)0.19%
PT rev (1m)3.46%
PT rev (3m)N/A
EPS NQ rev (1m)7.59%
EPS NQ rev (3m)7.59%
EPS NY rev (1m)14.16%
EPS NY rev (3m)14.16%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.6 | ||
| P/FCF | 8.21 | ||
| P/OCF | 5.79 | ||
| P/B | 2.9 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)2.16
EY8.96%
EPS(NY)2.14
Fwd EY8.89%
FCF(TTM)2.94
FCFY12.19%
OCF(TTM)4.16
OCFY17.27%
SpS40.4
BVpS8.31
TBVpS8.31
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 26.25% | ||
| ROCE | 12.68% | ||
| ROIC | 11.44% | ||
| ROICexc | 15.47% | ||
| ROICexgc | 15.47% | ||
| OM | 7.1% | ||
| PM (TTM) | 5.4% | ||
| GM | 41.27% | ||
| FCFM | 7.27% |
ROA(3y)1.59%
ROA(5y)0.5%
ROE(3y)6.57%
ROE(5y)0.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-24.57%
ROICexc growth 3YN/A
ROICexc growth 5Y-24.42%
OM growth 3YN/A
OM growth 5Y-13.49%
PM growth 3YN/A
PM growth 5Y-11.03%
GM growth 3Y4.42%
GM growth 5Y0.36%
F-Score7
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 92.59% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 17.16 | ||
| Cash Conversion | 99.37% | ||
| Profit Quality | 134.63% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.73 |
F-Score7
WACC10.08%
ROIC/WACC1.14
Cap/Depr(3y)115%
Cap/Depr(5y)121.99%
Cap/Sales(3y)3.79%
Cap/Sales(5y)4.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1036.84%
EPS 3YN/A
EPS 5Y-11.2%
EPS Q2Q%22.03%
EPS Next Y40.97%
EPS Next 2Y22.46%
EPS Next 3Y17.59%
EPS Next 5Y14.94%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y2.56%
Revenue growth 5Y-2.13%
Sales Q2Q%1.65%
Revenue Next Year1.25%
Revenue Next 2Y1.46%
Revenue Next 3Y1.74%
Revenue Next 5Y1.47%
EBIT growth 1Y175.77%
EBIT growth 3YN/A
EBIT growth 5Y-15.33%
EBIT Next Year198.48%
EBIT Next 3Y48.99%
EBIT Next 5Y27.94%
FCF growth 1Y243.9%
FCF growth 3YN/A
FCF growth 5Y10.47%
OCF growth 1Y10366.7%
OCF growth 3Y86.28%
OCF growth 5Y2.1%