GAP INC/THE (GAP) Stock Fundamental Analysis

NYSE:GAP • US3647601083

26.805 USD
-0.66 (-2.39%)
Last: Feb 12, 2026, 12:51 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

GAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. GAP has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GAP. These ratings would make GAP suitable for value investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • GAP had positive earnings in the past year.
  • GAP had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: GAP reported negative net income in multiple 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

  • With a decent Return On Assets value of 6.88%, GAP is doing good in the industry, outperforming 79.17% of the companies in the same industry.
  • The Return On Equity of GAP (23.33%) is better than 82.50% of its industry peers.
  • The Return On Invested Capital of GAP (10.37%) is better than 77.50% 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 79.17% of the companies in the same industry.
  • In the last couple of years the Profit Margin of GAP has grown nicely.
  • GAP's Operating Margin of 7.50% is fine compared to the rest of the industry. GAP outperforms 75.83% of its industry peers.
  • In the last couple of years the Operating Margin of GAP has grown nicely.
  • The Gross Margin of GAP (41.01%) is better than 62.50% of its industry peers.
  • In the last couple of years the Gross Margin of GAP has grown nicely.
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.
  • GAP has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, GAP has an improved debt to assets ratio.
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 2.87 indicates that GAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.87, GAP is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
  • 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.
  • GAP has a better Debt to FCF ratio (1.91) than 76.67% of its industry peers.
  • A Debt/Equity ratio of 0.41 indicates that GAP is not too dependend on debt financing.
  • GAP has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: GAP outperforms 57.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 1.91
Altman-Z 2.87
ROIC/WACC1.1
WACC9.46%
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.
  • With a decent Current ratio value of 1.72, GAP is doing good in the industry, outperforming 72.50% 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.
  • The Quick ratio of GAP (0.97) is better than 71.67% 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.
  • Measured over the past 5 years, GAP shows a small growth in Earnings Per Share. The EPS has been growing by 2.22% on average per year.
  • 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

  • The Earnings Per Share is expected to grow by 7.42% on average over the next years.
  • 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 2Y2.4%
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

7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.97, the valuation of GAP can be described as reasonable.
  • Based on the Price/Earnings ratio, GAP is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
  • GAP is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • GAP is valuated reasonably with a Price/Forward Earnings ratio of 11.44.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of GAP indicates a rather cheap valuation: GAP is cheaper than 85.00% of the companies listed in the same industry.
  • GAP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.01.
Industry RankSector Rank
PE 11.97
Fwd PE 11.44
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 89.17% 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 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.8
EV/EBITDA 5.44
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)5.38
EPS Next 2Y2.98%
EPS Next 3Y5.59%

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.34%, GAP has a reasonable but not impressive dividend return.
  • GAP's Dividend Yield is rather good when compared to the industry average which is at 2.26. GAP pays more dividend than 81.67% of the companies in the same industry.
  • GAP's Dividend Yield is a higher than the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.34%

5.2 History

  • The dividend of GAP decreases each year by -9.10%.
  • 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)-9.1%
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 (2/12/2026, 12:51:09 PM)

26.805

-0.66 (-2.39%)

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-0.11%
Market Cap9.97B
Revenue(TTM)15.28B
Net Income(TTM)851.00M
Analysts76.67
Price Target31.05 (15.84%)
Short Float %9.66%
Short Ratio2.55
Dividend
Industry RankSector Rank
Dividend Yield 2.34%
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)6.37%
PT rev (3m)25.3%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)4.5%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.37%
Valuation
Industry RankSector Rank
PE 11.97
Fwd PE 11.44
P/S 0.65
P/FCF 12.8
P/OCF 8.15
P/B 2.73
P/tB 2.73
EV/EBITDA 5.44
EPS(TTM)2.24
EY8.36%
EPS(NY)2.34
Fwd EY8.74%
FCF(TTM)2.09
FCFY7.81%
OCF(TTM)3.29
OCFY12.27%
SpS41.08
BVpS9.81
TBVpS9.81
PEG (NY)N/A
PEG (5Y)5.38
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 2.87
F-Score6
WACC9.46%
ROIC/WACC1.1
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 2Y2.4%
Revenue Next 3Y2.47%
Revenue Next 5Y2.25%
EBIT growth 1Y6.01%
EBIT growth 3Y8.23%
EBIT growth 5Y3.64%
EBIT Next Year55.7%
EBIT Next 3Y20.68%
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%.