GAP INC/THE (GAP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GAP - US3647601083 - Common Stock
23.435 EUR
-0.94 (-3.86%)
GAP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Specialty Retail industry. GAP has an average financial health and profitability rating. GAP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year GAP was profitable.
- In the past year GAP had a positive cash flow from operations.
- In multiple years GAP reported negative net income over the last 5 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 6.88%. This is in the better half of the industry: GAP outperforms 78.69% of its industry peers.
- GAP's Return On Equity of 23.33% is fine compared to the rest of the industry. GAP outperforms 77.05% of its industry peers.
- GAP's Return On Invested Capital of 10.37% is fine compared to the rest of the industry. GAP outperforms 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 23.33% | ||
| ROIC | 10.37% |
ROA(3y)3.29%
ROA(5y)1.41%
ROE(3y)12.05%
ROE(5y)4.02%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- GAP has a Profit Margin of 5.57%. This is in the better half of the industry: GAP outperforms 78.69% of its industry peers.
- In the last couple of years the Profit Margin of GAP has grown nicely.
- GAP has a better Operating Margin (7.50%) than 75.41% of its industry peers.
- In the last couple of years the Operating Margin of GAP has grown nicely.
- Looking at the Gross Margin, with a value of 41.01%, GAP is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
- In the last couple of years the Gross Margin of GAP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.5% | ||
| PM (TTM) | 5.57% | ||
| GM | 41.01% |
OM growth 3Y11.89%
OM growth 5Y5.36%
PM growth 3Y53.87%
PM growth 5Y21.16%
GM growth 3Y1.21%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GAP is still creating some value.
- Compared to 1 year ago, GAP has more shares outstanding
- The number of shares outstanding for GAP has been increased compared to 5 years ago.
- GAP has a better debt/assets ratio than last year.
2.2 Solvency
- GAP has an Altman-Z score of 2.86. This is not the best score and indicates that GAP is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.86, GAP belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
- The Debt to FCF ratio of GAP is 1.91, which is an excellent value as it means it would take GAP, only 1.91 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.91, GAP belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
- GAP has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of GAP (0.41) is better than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.91 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.09
WACC9.49%
2.3 Liquidity
- GAP has a Current Ratio of 1.72. This is a normal value and indicates that GAP is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.72, GAP is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
- A Quick Ratio of 0.97 indicates that GAP may have some problems paying its short term obligations.
- The Quick ratio of GAP (0.97) is better than 80.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- GAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.70%.
- GAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.22% yearly.
- GAP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.29%.
- Measured over the past years, GAP shows a decrease in Revenue. The Revenue has been decreasing by -1.64% on average per year.
EPS 1Y (TTM)3.7%
EPS 3Y15.62%
EPS 5Y2.22%
EPS Q2Q%-13.89%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y-3.27%
Revenue growth 5Y-1.64%
Sales Q2Q%2.95%
3.2 Future
- GAP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.42% yearly.
- The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-2.33%
EPS Next 2Y2.91%
EPS Next 3Y5.46%
EPS Next 5Y7.42%
Revenue Next Year2.33%
Revenue Next 2Y2.36%
Revenue Next 3Y2.43%
Revenue Next 5Y2.25%
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
- A Price/Earnings ratio of 12.14 indicates a correct valuation of GAP.
- Based on the Price/Earnings ratio, GAP is valued cheaper than 85.25% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GAP to the average of the S&P500 Index (27.38), we can say GAP is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.63 indicates a reasonable valuation of GAP.
- GAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GAP is cheaper than 77.05% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GAP to the average of the S&P500 Index (24.29), we can say GAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GAP is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GAP is valued a bit cheaper than the industry average as 63.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
- GAP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.46
EPS Next 2Y2.91%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
- GAP has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.26, GAP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, GAP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
- The dividend of GAP decreases each year by -9.10%.
Dividend Growth(5Y)-9.1%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 28.32% of the earnings are spent on dividend by GAP. This is a low number and sustainable payout ratio.
DP28.32%
EPS Next 2Y2.91%
EPS Next 3Y5.46%
FRA:GAP (1/15/2026, 7:00:00 PM)
23.435
-0.94 (-3.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-20 2025-11-20/amc
Earnings (Next)05-27 2026-05-27
Inst Owners62.32%
Inst Owner ChangeN/A
Ins Owners39.35%
Ins Owner ChangeN/A
Market Cap8.72B
Revenue(TTM)15.28B
Net Income(TTM)851.00M
Analysts76.67
Price Target22.41 (-4.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend0.52
Dividend Growth(5Y)-9.1%
DP28.32%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.39%
Min EPS beat(2)2.72%
Max EPS beat(2)4.07%
EPS beat(4)4
Avg EPS beat(4)15.67%
Min EPS beat(4)2.72%
Max EPS beat(4)44.45%
EPS beat(8)8
Avg EPS beat(8)52.78%
EPS beat(12)11
Avg EPS beat(12)77.24%
EPS beat(16)14
Avg EPS beat(16)7654.91%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-0.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)0.85%
Revenue beat(8)5
Avg Revenue beat(8)0.44%
Revenue beat(12)6
Avg Revenue beat(12)0.04%
Revenue beat(16)7
Avg Revenue beat(16)0.32%
PT rev (1m)0%
PT rev (3m)52.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.55%
EPS NY rev (3m)125.62%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 11.63 | ||
| P/S | 0.66 | ||
| P/FCF | 13 | ||
| P/OCF | 8.28 | ||
| P/B | 2.78 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)1.93
EY8.24%
EPS(NY)2.01
Fwd EY8.6%
FCF(TTM)1.8
FCFY7.69%
OCF(TTM)2.83
OCFY12.08%
SpS35.36
BVpS8.44
TBVpS8.44
PEG (NY)N/A
PEG (5Y)5.46
Graham Number19.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 23.33% | ||
| ROCE | 12.61% | ||
| ROIC | 10.37% | ||
| ROICexc | 14.34% | ||
| ROICexgc | 14.34% | ||
| OM | 7.5% | ||
| PM (TTM) | 5.57% | ||
| GM | 41.01% | ||
| FCFM | 5.1% |
ROA(3y)3.29%
ROA(5y)1.41%
ROE(3y)12.05%
ROE(5y)4.02%
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
ROICexgc growth 3Y18.13%
ROICexgc growth 5Y12.19%
ROICexc growth 3Y17.89%
ROICexc growth 5Y11.77%
OM growth 3Y11.89%
OM growth 5Y5.36%
PM growth 3Y53.87%
PM growth 5Y21.16%
GM growth 3Y1.21%
GM growth 5Y1.97%
F-Score6
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.91 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 89.34% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 18.19 | ||
| Cash Conversion | 74.44% | ||
| Profit Quality | 91.54% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.86 |
F-Score6
WACC9.49%
ROIC/WACC1.09
Cap/Depr(3y)98.9%
Cap/Depr(5y)102.35%
Cap/Sales(3y)3.39%
Cap/Sales(5y)3.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.7%
EPS 3Y15.62%
EPS 5Y2.22%
EPS Q2Q%-13.89%
EPS Next Y-2.33%
EPS Next 2Y2.91%
EPS Next 3Y5.46%
EPS Next 5Y7.42%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y-3.27%
Revenue growth 5Y-1.64%
Sales Q2Q%2.95%
Revenue Next Year2.33%
Revenue Next 2Y2.36%
Revenue Next 3Y2.43%
Revenue Next 5Y2.25%
EBIT growth 1Y6.01%
EBIT growth 3Y8.23%
EBIT growth 5Y3.64%
EBIT Next Year55.7%
EBIT Next 3Y20.33%
EBIT Next 5Y12.57%
FCF growth 1Y-32.55%
FCF growth 3Y108.28%
FCF growth 5Y23.2%
OCF growth 1Y-21.15%
OCF growth 3Y22.47%
OCF growth 5Y1.04%
GAP INC/THE / GAP.DE FAQ
What is the ChartMill fundamental rating of GAP INC/THE (GAP.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GAP.DE.
Can you provide the valuation status for GAP INC/THE?
ChartMill assigns a valuation rating of 6 / 10 to GAP INC/THE (GAP.DE). This can be considered as Fairly Valued.
What is the profitability of GAP stock?
GAP INC/THE (GAP.DE) has a profitability rating of 6 / 10.
What is the expected EPS growth for GAP INC/THE (GAP.DE) stock?
The Earnings per Share (EPS) of GAP INC/THE (GAP.DE) is expected to decline by -2.33% in the next year.
Is the dividend of GAP INC/THE sustainable?
The dividend rating of GAP INC/THE (GAP.DE) is 4 / 10 and the dividend payout ratio is 28.32%.