GAP INC/THE (GAP.DE) Fundamental Analysis & Valuation

FRA:GAP • US3647601083

Current stock price

20.495 EUR
+0.24 (+1.18%)
Last:

This GAP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. GAP.DE Profitability Analysis

1.1 Basic Checks

  • GAP had positive earnings in the past year.
  • GAP had a positive operating cash flow in the past year.
  • Of the past 5 years GAP 4 years were profitable.
  • In the past 5 years GAP always reported a positive cash flow from operatings.
GAP.DE Yearly Net Income VS EBIT VS OCF VS FCFGAP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M -500M 1B 1.5B

1.2 Ratios

  • GAP has a Return On Assets of 6.46%. This is in the better half of the industry: GAP outperforms 78.18% of its industry peers.
  • GAP's Return On Equity of 21.47% is amongst the best of the industry. GAP outperforms 81.82% of its industry peers.
  • GAP has a better Return On Invested Capital (8.74%) than 72.73% of its industry peers.
Industry RankSector Rank
ROA 6.46%
ROE 21.47%
ROIC 8.74%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
GAP.DE Yearly ROA, ROE, ROICGAP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 -20

1.3 Margins

  • GAP's Profit Margin of 5.31% is fine compared to the rest of the industry. GAP outperforms 76.36% of its industry peers.
  • GAP has a Operating Margin of 7.26%. This is in the better half of the industry: GAP outperforms 74.55% of its industry peers.
  • GAP has a Gross Margin of 40.79%. This is in the better half of the industry: GAP outperforms 61.82% of its industry peers.
  • GAP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.26%
PM (TTM) 5.31%
GM 40.79%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.93%
GM growth 5Y3.65%
GAP.DE Yearly Profit, Operating, Gross MarginsGAP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20 30 40

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5

2. GAP.DE Health Analysis

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.
  • There is no outstanding debt for GAP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
GAP.DE Yearly Shares OutstandingGAP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
GAP.DE Yearly Total Debt VS Total AssetsGAP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • The Debt to FCF ratio of GAP is 1.81, which is an excellent value as it means it would take GAP, only 1.81 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.81, GAP belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
  • A Debt/Equity ratio of 0.39 indicates that GAP is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.39, GAP is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 1.81
Altman-Z N/A
ROIC/WACC1.03
WACC8.5%
GAP.DE Yearly LT Debt VS Equity VS FCFGAP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.75 indicates that GAP should not have too much problems paying its short term obligations.
  • The Current ratio of GAP (1.75) is better than 78.18% of its industry peers.
  • A Quick Ratio of 1.08 indicates that GAP should not have too much problems paying its short term obligations.
  • GAP's Quick ratio of 1.08 is fine compared to the rest of the industry. GAP outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.08
GAP.DE Yearly Current Assets VS Current LiabilitesGAP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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3

3. GAP.DE Growth Analysis

3.1 Past

  • GAP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.71%.
  • The Revenue has been growing slightly by 1.86% in the past year.
  • The Revenue has been growing slightly by 2.17% on average over the past years.
EPS 1Y (TTM)-2.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y-0.54%
Revenue growth 5Y2.17%
Sales Q2Q%2.1%

3.2 Future

  • Based on estimates for the next years, GAP will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
  • GAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.13% yearly.
EPS Next Y8.91%
EPS Next 2Y10.91%
EPS Next 3Y10.09%
EPS Next 5Y7.53%
Revenue Next Year2.47%
Revenue Next 2Y2.74%
Revenue Next 3Y2.75%
Revenue Next 5Y2.13%

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
GAP.DE Yearly Revenue VS EstimatesGAP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
GAP.DE Yearly EPS VS EstimatesGAP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 1 -1 2 -2 3

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6

4. GAP.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.08 indicates a reasonable 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 85.45% of the companies listed in the same industry.
  • GAP is valuated cheaply when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 10.15 indicates a reasonable valuation of GAP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of GAP indicates a somewhat cheap valuation: GAP is cheaper than 76.36% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, GAP is valued rather cheaply.
Industry RankSector Rank
PE 11.08
Fwd PE 10.15
GAP.DE Price Earnings VS Forward Price EarningsGAP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, GAP is valued a bit cheaper than 78.18% of the companies in the same industry.
  • GAP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 10.74
EV/EBITDA 4.31
GAP.DE Per share dataGAP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • GAP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y10.91%
EPS Next 3Y10.09%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. GAP.DE Dividend Analysis

5.1 Amount

  • GAP has a Yearly Dividend Yield of 2.91%.
  • GAP's Dividend Yield is a higher than the industry average which is at 1.40.
  • Compared to an average S&P500 Dividend Yield of 1.89, GAP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.91%

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
GAP.DE Yearly Dividends per shareGAP.DE Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • GAP pays out 30.27% of its income as dividend. This is a sustainable payout ratio.
DP30.27%
EPS Next 2Y10.91%
EPS Next 3Y10.09%
GAP.DE Yearly Income VS Free CF VS DividendGAP.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M -500M 1B
GAP.DE Dividend Payout.GAP.DE Dividend Payout, showing the Payout Ratio.GAP.DE Dividend Payout.PayoutRetained Earnings

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GAP.DE Fundamentals: All Metrics, Ratios and Statistics

GAP INC/THE

FRA:GAP (3/16/2026, 7:00:00 PM)

20.495

+0.24 (+1.18%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-05
Earnings (Next)05-27
Inst Owners61.41%
Inst Owner ChangeN/A
Ins Owners39.32%
Ins Owner ChangeN/A
Market Cap7.62B
Revenue(TTM)15.37B
Net Income(TTM)816.00M
Analysts77.5
Price Target22.41 (9.34%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.91%
Yearly Dividend0.52
Dividend Growth(5Y)-9.1%
DP30.27%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.83%
Min EPS beat(2)-2.41%
Max EPS beat(2)4.07%
EPS beat(4)3
Avg EPS beat(4)3.95%
Min EPS beat(4)-2.41%
Max EPS beat(4)11.43%
EPS beat(8)7
Avg EPS beat(8)38.08%
EPS beat(12)11
Avg EPS beat(12)82.1%
EPS beat(16)13
Avg EPS beat(16)7649.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)0.23%
Revenue beat(8)4
Avg Revenue beat(8)0.17%
Revenue beat(12)6
Avg Revenue beat(12)0.24%
Revenue beat(16)7
Avg Revenue beat(16)0.25%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-21.57%
EPS NQ rev (3m)-21.15%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 11.08
Fwd PE 10.15
P/S 0.58
P/FCF 10.74
P/OCF 6.83
P/B 2.32
P/tB 2.32
EV/EBITDA 4.31
EPS(TTM)1.85
EY9.03%
EPS(NY)2.02
Fwd EY9.86%
FCF(TTM)1.91
FCFY9.31%
OCF(TTM)3
OCFY14.63%
SpS35.64
BVpS8.82
TBVpS8.82
PEG (NY)1.24
PEG (5Y)N/A
Graham Number19.16
Profitability
Industry RankSector Rank
ROA 6.46%
ROE 21.47%
ROCE 11.95%
ROIC 8.74%
ROICexc 12.89%
ROICexgc 12.89%
OM 7.26%
PM (TTM) 5.31%
GM 40.79%
FCFM 5.36%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.93%
GM growth 5Y3.65%
F-Score6
Asset Turnover1.22
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 1.81
Debt/EBITDA 0.93
Cap/Depr 94.76%
Cap/Sales 3.06%
Interest Coverage 250
Cash Conversion 80.26%
Profit Quality 100.86%
Current Ratio 1.75
Quick Ratio 1.08
Altman-Z N/A
F-Score6
WACC8.5%
ROIC/WACC1.03
Cap/Depr(3y)88.21%
Cap/Depr(5y)105.83%
Cap/Sales(3y)2.95%
Cap/Sales(5y)3.48%
Profit Quality(3y)148.49%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y8.91%
EPS Next 2Y10.91%
EPS Next 3Y10.09%
EPS Next 5Y7.53%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y-0.54%
Revenue growth 5Y2.17%
Sales Q2Q%2.1%
Revenue Next Year2.47%
Revenue Next 2Y2.74%
Revenue Next 3Y2.75%
Revenue Next 5Y2.13%
EBIT growth 1Y-0.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year51.94%
EBIT Next 3Y17.53%
EBIT Next 5Y9.67%
FCF growth 1Y-20.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.99%
OCF growth 3Y28.67%
OCF growth 5Y40.4%

GAP INC/THE / GAP.DE Fundamental Analysis 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 grow by 8.91% in the next year.


Is the dividend of GAP INC/THE sustainable?

The dividend rating of GAP INC/THE (GAP.DE) is 5 / 10 and the dividend payout ratio is 30.27%.