The Gap, Inc (GPS) is a leading apparel retail business based in the US. Gap is listed on the NYSE and employs 129,000 staff. All prices are listed in US Dollars.
|52-week range||$5.0664 - $26.99|
|50-day moving average||$21.1636|
|200-day moving average||$18.4543|
|Wall St. target price||$24.27|
|Dividend yield||$0.97 (13.98%)|
|Earnings per share (TTM)||$2.143|
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing Gap stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Gap's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Gap's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 9x. In other words, Gap shares trade at around 9x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, Gap's P/E ratio is best considered in relation to those of others within the apparel retail industry or those of similar companies.
Gap's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.1492. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Gap's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Gap's PEG ratio in relation to those of similar companies.
Gap's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $156 million.
The EBITDA is a measure of a Gap's overall financial performance and is widely used to measure a its profitability.
To put Gap's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$14 billion|
|Gross profit TTM||$8 billion|
|Return on assets TTM||-1.6%|
|Return on equity TTM||-36.07%|
|Market capitalisation||$8.4 billion|
TTM: trailing 12 months
There are currently 16.8 million Gap shares held short by investors – that's known as Gap's "short interest". This figure is 24.3% down from 22.2 million last month.
There are a few different ways that this level of interest in shorting Gap shares can be evaluated.
Gap's "short interest ratio" (SIR) is the quantity of Gap shares currently shorted divided by the average quantity of Gap shares traded daily (recently around 7.9 million). Gap's SIR currently stands at 2.14. In other words for every 100,000 Gap shares traded daily on the market, roughly 2140 shares are currently held short.
To gain some more context, you can compare Gap's short interest ratio against those of similar companies.
However Gap's short interest can also be evaluated against the total number of Gap shares, or, against the total number of tradable Gap shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Gap's short interest could be expressed as 0.04% of the outstanding shares (for every 100,000 Gap shares in existence, roughly 40 shares are currently held short) or 0.0858% of the tradable shares (for every 100,000 tradable Gap shares, roughly 86 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Gap.
Find out more about how you can short Gap stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Gap.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 10.38
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Gap's overall score of 10.38 (as at 01/01/2019) is excellent – landing it in it in the 4th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Gap is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Gap's total ESG risk score against those of similar companies.
Environmental score: 1.61/100
Gap's environmental score of 1.61 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Gap is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 3.58/100
Gap's social score of 3.58 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Gap is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 2.19/100
Gap's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that Gap is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Gap scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Gap hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||10.38|
|Total ESG percentile||3.96|
|Environmental score percentile||1|
|Social score percentile||1|
|Governance score percentile||1|
|Level of controversy||3|
We're not expecting Gap to pay a dividend over the next 12 months. However, you can browse other dividend-paying shares in our guide.
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Gap's shares were split on a 3:2 basis on 22 June 1999. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Gap shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Gap shares which in turn could have impacted Gap's share price.
Over the last 12 months, Gap's shares have ranged in value from as little as $5.0664 up to $26.99. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Gap's is 1.5242. This would suggest that Gap's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
To put Gap's beta into context you can compare it against those of similar companies.
The Gap, Inc. operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. Its products include denim, tees, fleece, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores in Asia, Europe, Latin America, the Middle East, and Africa. As of February 1, 2020, the company had 3,345 company-operated stores; and 574 franchise stores, as well as online. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.
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