(GAP) The Gap - Overview
Sector: Consumer CyclicalIndustry: Apparel Retail | Exchange NYSE (USA) | Currency USD | Market Cap: 9.288m | Total Return 20.2% in 12m
Stock: Apparel, Accessories, Personal Care
| Risk 5d forecast | |
|---|---|
| Volatility | 51.4% |
| Relative Tail Risk | -19.3% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.54 |
| Alpha | 0.33 |
| Character TTM | |
|---|---|
| Beta | 1.724 |
| Beta Downside | 1.348 |
| Drawdowns 3y | |
|---|---|
| Max DD | 38.00% |
| CAGR/Max DD | 1.07 |
EPS (Earnings per Share)
Revenue
Description: GAP The Gap February 25, 2026
The Gap, Inc. (NYSE:GAP) is a diversified apparel retailer that markets clothing, accessories, and personal-care items for men, women, and children through its four brands-Old Navy, Gap, Banana Republic, and Athleta. Products are sold via company-owned stores, franchised locations, e-commerce sites, and third-party partnerships, with franchise agreements extending the brands across Asia, Europe, Latin America, the Middle East, and Africa. Founded in 1969, the company is headquartered in San Francisco, California.
In its most recent fiscal year (FY 2025), Gap reported revenue of $13.9 billion, a 4 % year-over-year increase driven largely by a 3 % rise in comparable-store sales and a 38 % contribution from digital channels. The firm improved its inventory turnover to 4.2 × and posted an operating margin of 6.5 %, translating to earnings per share of $1.12. These metrics reflect a steady recovery from pandemic-era disruptions and a focus on higher-margin athleisure and “everyday-essential” product lines.
Key macro drivers for the apparel retail sector remain US consumer confidence (currently at 102), modest inflation easing, and sustained growth in online shopping, which together support Gap’s strategy of expanding digital sales while optimizing its brick-and-mortar footprint. For a deeper quantitative view, you might explore ValueRay’s analytics platform.
Headlines to watch out for
- Old Navy sales performance impacts overall revenue
- Inventory management affects profitability and margins
- E-commerce growth mitigates brick-and-mortar declines
- Consumer discretionary spending influences demand
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 816.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -1.02 > 1.0 |
| NWC/Revenue: 16.12% < 20% (prev 12.91%; Δ 3.21% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.59b > Net Income 816.0m |
| Net Debt (3.00b) to EBITDA (1.67b): 1.80 < 3 |
| Current Ratio: 1.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (384.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 40.79% > 18% (prev 0.41%; Δ 4.04k% > 0.5%) |
| Asset Turnover: 125.3% > 50% (prev 126.9%; Δ -1.58% > 0%) |
| Interest Coverage Ratio: 16.04 > 6 (EBITDA TTM 1.67b / Interest Expense TTM 73.0m) |
Altman Z'' 3.30
| A: 0.20 (Total Current Assets 5.78b - Total Current Liabilities 3.30b) / Total Assets 12.63b |
| B: 0.29 (Retained Earnings 3.61b / Total Assets 12.63b) |
| C: 0.10 (EBIT TTM 1.17b / Avg Total Assets 12.26b) |
| D: 0.42 (Book Value of Equity 3.67b / Total Liabilities 8.83b) |
| Altman-Z'' Score: 3.30 = A |
Beneish M -3.17
| DSRI: 0.95 (Receivables 316.0m/328.0m, Revenue 15.37b/15.09b) |
| GMI: 1.01 (GM 40.79% / 41.28%) |
| AQI: 0.90 (AQ_t 0.07 / AQ_t-1 0.08) |
| SGI: 1.02 (Revenue 15.37b / 15.09b) |
| TATA: -0.06 (NI 816.0m - CFO 1.59b) / TA 12.63b) |
| Beneish M-Score: -3.17 (Cap -4..+1) = AA |
What is the price of GAP shares?
Over the past week, the price has changed by +3.47%, over one month by -11.77%, over three months by -4.30% and over the past year by +20.16%.
Is GAP a buy, sell or hold?
- StrongBuy: 4
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the GAP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 30.7 | 23.9% |
| Analysts Target Price | 30.7 | 23.9% |
GAP Fundamental Data Overview March 27, 2026
P/E Forward = 10.1729
P/S = 0.6045
P/B = 2.3396
P/EG = 1.3862
Revenue TTM = 15.37b USD
EBIT TTM = 1.17b USD
EBITDA TTM = 1.67b USD
Long Term Debt = 1.49b USD (from longTermDebt, last fiscal year)
Short Term Debt = 634.0m USD (from shortTermDebt, last quarter)
Debt = 5.61b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.00b USD (from netDebt column, last quarter)
Enterprise Value = 11.90b USD (9.29b + Debt 5.61b - CCE 3.00b)
Interest Coverage Ratio = 16.04 (Ebit TTM 1.17b / Interest Expense TTM 73.0m)
EV/FCF = 12.19x (Enterprise Value 11.90b / FCF TTM 976.0m)
FCF Yield = 8.20% (FCF TTM 976.0m / Enterprise Value 11.90b)
FCF Margin = 6.35% (FCF TTM 976.0m / Revenue TTM 15.37b)
Net Margin = 5.31% (Net Income TTM 816.0m / Revenue TTM 15.37b)
Gross Margin = 40.79% ((Revenue TTM 15.37b - Cost of Revenue TTM 9.10b) / Revenue TTM)
Gross Margin QoQ = 38.10% (prev 42.36%)
Tobins Q-Ratio = 0.94 (Enterprise Value 11.90b / Total Assets 12.63b)
Interest Expense / Debt = 0.43% (Interest Expense 24.0m / Debt 5.61b)
Taxrate = 27.54% (65.0m / 236.0m)
NOPAT = 848.5m (EBIT 1.17b * (1 - 27.54%))
Current Ratio = 1.75 (Total Current Assets 5.78b / Total Current Liabilities 3.30b)
Debt / Equity = 1.48 (Debt 5.61b / totalStockholderEquity, last quarter 3.80b)
Debt / EBITDA = 1.80 (Net Debt 3.00b / EBITDA 1.67b)
Debt / FCF = 3.07 (Net Debt 3.00b / FCF TTM 976.0m)
Total Stockholder Equity = 3.55b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.66% (Net Income 816.0m / Total Assets 12.63b)
RoE = 22.98% (Net Income TTM 816.0m / Total Stockholder Equity 3.55b)
RoCE = 23.22% (EBIT 1.17b / Capital Employed (Equity 3.55b + L.T.Debt 1.49b))
RoIC = 17.11% (NOPAT 848.5m / Invested Capital 4.96b)
WACC = 7.63% (E(9.29b)/V(14.90b) * Re(12.05%) + D(5.61b)/V(14.90b) * Rd(0.43%) * (1-Tc(0.28)))
Discount Rate = 12.05% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.13%
[DCF] Terminal Value 75.81% ; FCFF base≈1.00b ; Y1≈777.0m ; Y5≈496.5m
[DCF] Fair Price = 19.05 (EV 10.09b - Net Debt 3.00b = Equity 7.10b / Shares 372.6m; r=7.63% [WACC]; 5y FCF grow -26.66% → 3.0% )
EPS Correlation: 62.59 | EPS CAGR: 39.26% | SUE: 0.0 | # QB: 0
Revenue Correlation: 18.78 | Revenue CAGR: 5.41% | SUE: -0.07 | # QB: 0
EPS next Quarter (2026-04-30): EPS=0.48 | Chg7d=-0.001 | Chg30d=+0.004 | Revisions Net=-4 | Analysts=10
EPS current Year (2027-01-31): EPS=2.42 | Chg7d=+0.031 | Chg30d=+0.073 | Revisions Net=-2 | Growth EPS=+13.4% | Growth Revenue=+2.5%
EPS next Year (2028-01-31): EPS=2.62 | Chg7d=+0.005 | Chg30d=+0.018 | Revisions Net=-2 | Growth EPS=+8.3% | Growth Revenue=+2.9%
[Analyst] Revisions Ratio: -0.67 (1 Up / 5 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 3.5% (Discount Rate 12.1% - Earnings Yield 8.5%)
[Growth] Growth Spread = -1.7% (Analyst 1.8% - Implied 3.5%)