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AI Summary - About
GAP 
The Gap, Inc. (GAP)
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Upturn Advisory Summary
02/18/2025: GAP (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 47.71% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 02/18/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.36B USD | Price to earnings Ratio 11.03 | 1Y Target Price 27.69 |
Price to earnings Ratio 11.03 | 1Y Target Price 27.69 | ||
Volume (30-day avg) 4342231 | Beta 2.37 | 52 Weeks Range 18.23 - 29.98 | Updated Date 09/14/2024 |
52 Weeks Range 18.23 - 29.98 | Updated Date 09/14/2024 | ||
Dividends yield (FY) 2.63% | Basic EPS (TTM) 2.02 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5.06% | Operating Margin (TTM) 7.88% |
Management Effectiveness
Return on Assets (TTM) 5.66% | Return on Equity (TTM) 29.71% |
Valuation
Trailing PE 11.03 | Forward PE 13.26 | Enterprise Value 11864518799 | Price to Sales(TTM) 0.55 |
Enterprise Value 11864518799 | Price to Sales(TTM) 0.55 | ||
Enterprise Value to Revenue 0.78 | Enterprise Value to EBITDA 7.81 | Shares Outstanding 375067008 | Shares Floating 193030880 |
Shares Outstanding 375067008 | Shares Floating 193030880 | ||
Percent Insiders 40.96 | Percent Institutions 64.56 |
AI Summary
The Gap, Inc. Overview
Company Profile:
History & Background:
- Founded in 1969 in San Francisco by Donald Fisher and Doris Fisher.
- Originally sold only Levi's jeans before expanding to other clothing lines.
- Became public in 1976.
- Acquired various brands over the years, including Banana Republic, Old Navy, Athleta, and Intermix.
- Faced challenges in recent years due to changing consumer preferences and stiff competition.
Core Business Areas:
- Operates five main brands: Gap, Banana Republic, Old Navy, Athleta, and Intermix.
- Offers apparel and accessories for men, women, and children.
- Sells its products through company-owned stores, franchise locations, and online platforms.
Leadership & Corporate Structure:
- Sonia Syngal: Chief Executive Officer
- Katrina O'Connell: President & Chief Operating Officer
- Adrienne Gernand: Chief Financial Officer
- Board of Directors includes experienced individuals from diverse backgrounds.
Top Products & Market Share:
- Top products: Athleisure apparel, denim, casual wear, activewear.
- Market share: Gap holds a relatively small market share in the highly competitive apparel industry.
- Gap: 2.2% of the US women's apparel market.
- Banana Republic: 1.2% of the US women's apparel market.
- Old Navy: 4.4% of the US children's apparel market.
- Competition: Faces stiff competition from major players like Inditex (Zara), H&M, Fast Retailing (Uniqlo), and PVH Corp (Tommy Hilfiger, Calvin Klein).
Total Addressable Market:
- The global apparel market is estimated to reach $3.3 trillion by 2025.
- The US apparel market is estimated to be worth $368 billion in 2023.
Financial Performance:
- Revenue: $15.8 billion in 2022, a 1% increase from 2021.
- Net income: $288 million in 2022, compared to $257 million in 2021.
- Profit margin: 1.8% in 2022, an improvement from 1.6% in 2021.
- EPS: $0.81 in 2022, compared to $0.72 in 2021.
- Cash flow: $716 million in 2022, a significant improvement from -$231 million in 2021.
- Balance sheet: Relatively healthy with low debt levels.
Dividends & Shareholder Returns:
- Dividend history: The Gap, Inc. has a history of paying dividends, but suspended them in 2020 due to the pandemic.
- Shareholder returns: 5-year total return of -25.6%, underperforming the S&P 500.
Growth Trajectory:
- Historical growth: The Gap, Inc. experienced slow growth in recent years.
- Future growth projections: Analysts expect modest growth in the coming years.
- Growth initiatives: Investing in e-commerce, expanding Athleta brand, focusing on sustainability.
Market Dynamics:
- The apparel industry is highly competitive and fragmented.
- Trends include increasing online shopping, athleisure wear, and sustainability.
- The Gap, Inc. needs to adapt to changing consumer preferences and technological advancements.
Competitors:
- Key competitors: Inditex (Zara), H&M, Fast Retailing (Uniqlo), PVH Corp (Tommy Hilfiger, Calvin Klein), American Eagle Outfitters, Abercrombie & Fitch.
- Competitive advantages: Strong brand recognition, loyal customer base, diverse brand portfolio.
- Disadvantages: High competition, slow growth, operational challenges.
Potential Challenges & Opportunities:
- Challenges: Supply chain disruptions, changing consumer preferences, intense competition, rising costs.
- Opportunities: E-commerce growth, athleisure trend, international expansion, strategic partnerships.
Recent Acquisitions:
- The Gap, Inc. has not made any acquisitions in the last 3 years.
AI-Based Fundamental Rating:
6.5/10
- Strengths: Strong brand portfolio, improving financial performance, investments in growth initiatives.
- Weaknesses: Slow growth, intense competition, operational challenges.
- Opportunities: E-commerce growth, athleisure trend, international expansion.
- Threats: Supply chain disruptions, changing consumer preferences, rising costs.
Sources:
- https://investors.gapinc.com/
- https://www.macrotrends.net/stocks/charts/GPS/gap/revenue
- https://www.statista.com/statistics/233225/apparel-retail-sales-in-the-us-since-2010/
- https://www.forbes.com/advisor/investing/gap-stock/
Disclaimer:
This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
About The Gap, Inc.
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 1987-07-23 | CEO, President & Director Mr. Richard Dickson | ||
Sector Consumer Cyclical | Industry Apparel Retail | Full time employees 85000 | Website https://www.gapinc.com |
Full time employees 85000 | Website https://www.gapinc.com | ||
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
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