GAP INC/THE (GAP) Stock Fundamental Analysis

NYSE:GAP • US3647601083

28.04 USD
-0.24 (-0.85%)
At close: Feb 27, 2026
28.05 USD
+0.01 (+0.04%)
After Hours: 2/27/2026, 8:06:32 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, GAP scores 6 out of 10 in our fundamental rating. GAP was compared to 123 industry peers in the Specialty Retail industry. GAP scores excellent on profitability, but there are some minor concerns on its financial health. GAP is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years GAP always reported a positive cash flow from operatings.
GAP Yearly Net Income VS EBIT VS OCF VS FCFGAP 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 0 500M -500M 1B 1.5B

1.2 Ratios

  • GAP has a better Return On Assets (6.88%) than 79.67% of its industry peers.
  • GAP's Return On Equity of 23.33% is amongst the best of the industry. GAP outperforms 82.93% of its industry peers.
  • The Return On Invested Capital of GAP (10.37%) is better than 78.05% of its industry peers.
Industry RankSector 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
GAP Yearly ROA, ROE, ROICGAP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.57%, GAP is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
  • GAP's Profit Margin has improved in the last couple of years.
  • GAP's Operating Margin of 7.50% is fine compared to the rest of the industry. GAP outperforms 76.42% of its industry peers.
  • GAP's Operating Margin has improved in the last couple of years.
  • GAP's Gross Margin of 41.01% is fine compared to the rest of the industry. GAP outperforms 61.79% of its industry peers.
  • GAP's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
GAP Yearly Profit, Operating, Gross MarginsGAP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • The number of shares outstanding for GAP has been increased compared to 1 year ago.
  • 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.
GAP Yearly Shares OutstandingGAP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
GAP Yearly Total Debt VS Total AssetsGAP 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

  • An Altman-Z score of 2.88 indicates that GAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • GAP has a Altman-Z score of 2.88. This is in the better half of the industry: GAP outperforms 65.04% of its industry peers.
  • GAP has a debt to FCF ratio of 1.91. This is a very positive value and a sign of high solvency as it would only need 1.91 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.91, GAP is in the better half of the industry, outperforming 76.42% of the companies in the same industry.
  • A Debt/Equity ratio of 0.41 indicates that GAP is not too dependend on debt financing.
  • GAP has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 1.91
Altman-Z 2.88
ROIC/WACC1.11
WACC9.33%
GAP Yearly LT Debt VS Equity VS FCFGAP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

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 71.54% of the companies in the same industry.
  • GAP has a Quick Ratio of 1.72. This is a bad value and indicates that GAP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • GAP has a Quick ratio of 0.97. This is in the better half of the industry: GAP outperforms 72.36% of its industry peers.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 0.97
GAP Yearly Current Assets VS Current LiabilitesGAP 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.70% over the past year.
  • The Earnings Per Share has been growing slightly by 2.22% on average over the past years.
  • GAP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.29%.
  • GAP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.64% yearly.
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

  • Based on estimates for the next years, GAP will show a small growth in Earnings Per Share. The EPS will grow by 7.42% on average per year.
  • Based on estimates for the next years, GAP will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-2.24%
EPS Next 2Y2.98%
EPS Next 3Y5.59%
EPS Next 5Y7.42%
Revenue Next Year2.35%
Revenue Next 2Y2.39%
Revenue Next 3Y2.47%
Revenue Next 5Y2.25%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
GAP Yearly Revenue VS EstimatesGAP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
GAP Yearly EPS VS EstimatesGAP 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.52 indicates a correct 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 82.11% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, GAP is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 11.96, the valuation of GAP can be described as very reasonable.
  • 82.11% of the companies in the same industry are more expensive than GAP, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, GAP is valued rather cheaply.
Industry RankSector Rank
PE 12.52
Fwd PE 11.96
GAP Price Earnings VS Forward Price EarningsGAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, GAP is valued cheaply inside the industry as 89.43% of the companies are valued more expensively.
  • GAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GAP is cheaper than 77.24% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.39
EV/EBITDA 5.57
GAP Per share dataGAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The decent profitability rating of GAP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.63
EPS Next 2Y2.98%
EPS Next 3Y5.59%

More info and screens

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

5

5. Dividend

5.1 Amount

  • GAP has a Yearly Dividend Yield of 2.48%.
  • Compared to an average industry Dividend Yield of 2.33, GAP pays a better dividend. On top of this GAP pays more dividend than 82.93% of the companies listed in the same industry.
  • GAP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.48%

5.2 History

  • The dividend of GAP decreases each year by -9.10%.
  • GAP has paid a dividend for at least 10 years, which is a reliable track record.
  • GAP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.1%
Div Incr Years0
Div Non Decr Years4
GAP Yearly Dividends per shareGAP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • GAP pays out 28.32% of its income as dividend. This is a sustainable payout ratio.
DP28.32%
EPS Next 2Y2.98%
EPS Next 3Y5.59%
GAP Yearly Income VS Free CF VS DividendGAP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B
GAP Dividend Payout.GAP Dividend Payout, showing the Payout Ratio.GAP Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

GAP INC/THE

NYSE:GAP (2/27/2026, 8:06:32 PM)

After market: 28.05 +0.01 (+0.04%)

28.04

-0.24 (-0.85%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-20
Earnings (Next)05-27
Inst Owners62.32%
Inst Owner ChangeN/A
Ins Owners39.35%
Ins Owner Change-0.4%
Market Cap10.43B
Revenue(TTM)15.28B
Net Income(TTM)851.00M
Analysts77.5
Price Target31.23 (11.38%)
Short Float %11.76%
Short Ratio3.64
Dividend
Industry RankSector Rank
Dividend Yield 2.48%
Yearly Dividend0.6
Dividend Growth(5Y)-9.1%
DP28.32%
Div Incr Years0
Div Non Decr Years4
Ex-Date01-07
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)1.17%
PT rev (3m)22.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.11%
EPS NY rev (1m)0.1%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.37%
Valuation
Industry RankSector Rank
PE 12.52
Fwd PE 11.96
P/S 0.68
P/FCF 13.39
P/OCF 8.53
P/B 2.86
P/tB 2.86
EV/EBITDA 5.57
EPS(TTM)2.24
EY7.99%
EPS(NY)2.34
Fwd EY8.36%
FCF(TTM)2.09
FCFY7.47%
OCF(TTM)3.29
OCFY11.73%
SpS41.08
BVpS9.81
TBVpS9.81
PEG (NY)N/A
PEG (5Y)5.63
Graham Number22.23
Profitability
Industry RankSector 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 RankSector 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 2.88
F-Score6
WACC9.33%
ROIC/WACC1.11
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-2.24%
EPS Next 2Y2.98%
EPS Next 3Y5.59%
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 Year2.35%
Revenue Next 2Y2.39%
Revenue Next 3Y2.47%
Revenue Next 5Y2.25%
EBIT growth 1Y6.01%
EBIT growth 3Y8.23%
EBIT growth 5Y3.64%
EBIT Next Year55.61%
EBIT Next 3Y20.72%
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 FAQ

What is the ChartMill fundamental rating of GAP INC/THE (GAP) stock?

ChartMill assigns a fundamental rating of 6 / 10 to GAP.


Can you provide the valuation status for GAP INC/THE?

ChartMill assigns a valuation rating of 6 / 10 to GAP INC/THE (GAP). This can be considered as Fairly Valued.


What is the profitability of GAP stock?

GAP INC/THE (GAP) has a profitability rating of 7 / 10.


What is the expected EPS growth for GAP INC/THE (GAP) stock?

The Earnings per Share (EPS) of GAP INC/THE (GAP) is expected to decline by -2.24% in the next year.


Is the dividend of GAP INC/THE sustainable?

The dividend rating of GAP INC/THE (GAP) is 5 / 10 and the dividend payout ratio is 28.32%.