Gap Inc Stock Research

Market Summary

USD10.04+0.53

Market Closed

5.57%

GPS Alerts

1 major insider sales recently.
Big fall in earnings (Y/Y)
Losses in recent quarter

GPS Stock Price

GPS RSI Chart

GPS Valuation

Market Cap

3.7B

Price/Earnings (Trailing)

-18.19

Price/Sales (Trailing)

0.24

EV/EBITDA

7.08

Price/Free Cashflow

-47.11

GPS Price/Sales (Trailing)

GPS Profitability

EBT Margin

-0.65%

Return on Equity

2.14%

Return on Assets

0.46%

Free Cashflow Yield

-2.12%

GPS Fundamentals

GPS Revenue

Revenue (TTM)

15.6B

Revenue Y/Y

-6.23%

Revenue Q/Q

5.05%

GPS Earnings

Earnings (TTM)

-202.0M

Earnings Y/Y

-1.6K%

Earnings Q/Q

-196.81%

Price Action

52 Week Range

7.6515.49

(Low)(High)

Last 7 days

11.6%

Last 30 days

-20.1%

Last 90 days

-9.8%

Trailing 12 Months

-25.3%

GPS Financial Health

Current Ratio

1.49

Debt/Equity

0.41

Debt/Cashflow

0.01

GPS Investor Care

Dividend Yield

5.98%

Dividend/Share (TTM)

0.6

Buy Backs (1Y)

1.35%

Diluted EPS (TTM)

-0.55

Peers (Alternatives to Gap)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
TJX	90.6B	49.3B	1.95%	31.19%	26.65	1.84	7.96%	27.42%
ORLY	52.9B	14.4B	3.00%	23.95%	24.37	3.67	8.12%	0.37%
AZO	46.7B	16.6B	0.07%	20.23%	19.36	2.82	9.40%	5.72%
ROST	36.6B	18.5B	-4.10%	17.76%	25.56	1.98	1.97%	-10.16%
MID-CAP
FL	3.7B	8.8B	-8.04%	39.60%	8.7	0.42	-0.59%	-53.34%
GPS	3.7B	15.6B	-20.13%	-25.34%	-18.19	0.24	-6.32%	-178.91%
AEO	2.6B	5.0B	-4.88%	-18.74%	20.95	0.53	-0.42%	-70.18%
URBN	2.6B	4.7B	1.61%	10.39%	15.1	0.54	10.17%	-43.27%
BOOT	2.3B	1.6B	0.03%	-19.15%	13.53	1.41	18.44%	-1.99%
SMALL-CAP
BKE	1.8B	1.3B	-13.04%	11.77%	7.13	1.35	7.45%	6.00%
ANF	1.4B	3.7B	-5.06%	-13.25%	37.07	0.38	-0.39%	-86.76%
SCVL	704.2M	-	-1.04%	-11.39%	6.46	0.51	9.28%	-23.06%
DBI	561.5M	3.4B	-10.36%	-34.86%	4.25	0.17	13.21%	2075.68%
PLCE	507.0M	1.8B	-5.32%	-18.36%	5.74	0.29	-6.40%	-43.31%
DXLG	341.7M	543.7M	-8.17%	12.91%	3.77	0.63	13.21%	117.39%

Financials for Gap

Income Statement (Last 12 Months)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Revenue	-1.8%	15,616,000,000	15,898,000,000	15,802,000,000	16,156,000,000	16,670,000,000
Gross Profit	-1.8%	5,359,000,000	5,458,000,000	5,610,000,000	6,103,000,000	6,637,000,000
Operating Expenses	-1.1%	5,428,000,000	5,489,000,000	5,674,000,000	5,730,000,000	5,827,000,000
R&D Expenses	-	41,000,000	-	-	-	-
EBITDA	270.3%	511,000,000	138,000,000	567,000,000	-	-
EBITDA Margin	268.1%	0.03	0.01	0.04	-	-
Earnings Before Taxes	-33.7%	-139,000,000	-104,000,000	-487,000,000	-80,000,000	323,000,000
EBT Margin	78.8%	-0.01	-0.03	0.00	-	-
Interest Expenses	8.6%	88,000,000	81,000,000	103,000,000	133,000,000	167,000,000
Net Income	-467.3%	-202,000,000	55,000,000	-379,000,000	-72,000,000	256,000,000
Net Income Margin	114.4%	0.00	-0.02	0.00	-	-
Free Cahsflow	24.6%	-770,000,000	-1,021,000,000	-691,000,000	-	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Assets	-5.1%	11,386	12,000	12,171	12,257	12,761
Current Assets	-8.4%	4,617	5,038	4,949	5,005	5,165
Cash Equivalents	87.5%	1,273	679	708	845	877
Net PPE	-3.6%	2,688	2,788	2,809	2,791	3,037
Goodwill	-	207	-	-	-	-
Current Liabilities	-3.7%	3,256	3,381	3,614	3,472	4,077
Long Term Debt	-3.6%	1,060	1,100	1,210	1,390	-
LT Debt, Non Current	0%	1,486	1,486	1,485	1,485	1,484
Shareholder's Equity	-13.1%	2,233	2,571	2,305	2,454	2,722
Retained Earnings	-13.3%	2,140	2,468	2,241	2,389	2,622
Additional Paid-In Capital	68.8%	27.00	16.00	-	-	43.00
Accumulated Depreciation	-2.4%	4,837	4,957	4,950	4,967	5,071
Shares Outstanding	0.3%	366	365	364	369	371

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Cashflow From Operations	3946.7%	607	15.00	-190	107	809
Share Based Compensation	-47.1%	37.00	70.00	73.00	104	139
Cashflow From Investing	-298.2%	-227	-57.00	-302	-180	-446
Cashflow From Financing	111.3%	6.00	-53.00	-1,166	-1,140	-1,471
Dividend Payments	4.8%	220	210	200	191	226
Buy Backs	-37.2%	123	196	257	255	201

Risks for GPS

What is the probability of a big loss on GPS?

85.4%

Probability that Gap stock will be more than 20% underwater in next one year

68.5%

Probability that Gap stock will be more than 30% underwater in next one year.

62.7%

Probability that Gap stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does GPS drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Gap was unfortunately bought at previous high price.

Drawdowns

Returns for GPS

Cumulative Returns on GPS

-9.2%

10-Year Cumulative Returns

-11.4%

7-Year Cumulative Returns

-17.8%

5-Year Cumulative Returns

15.2%

3-Year Cumulative Returns

What are the long-term rolling returns for GPS?

FIve years rolling returns for Gap.

Annualized Returns

Which funds bought or sold GPS recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-27	Neo Ivy Capital Management	reduced	-91.51	-53,000	7,000	-%
2023-03-23	MetLife Investment Management, LLC	reduced	-3.12	371,672	1,494,310	0.01%
2023-03-17	American Portfolios Advisors	added	0.7	46.00	12,947	-%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-0.02	139,890	512,890	-%
2023-03-06	Rockefeller Capital Management L.P.	added	13.71	69,000	192,000	-%
2023-02-28	Voya Investment Management LLC	reduced	-1.25	74,624	283,624	-%
2023-02-27	Parallax Volatility Advisers, L.P.	added	739	2,274,650	2,490,650	-%
2023-02-22	TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY	unchanged	-	109,000	399,000	-%
2023-02-21	NORTHWESTERN MUTUAL INVESTMENT MANAGEMENT COMPANY, LLC	reduced	-36.66	-32,792	220,208	0.01%
2023-02-21	NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO	added	0.15	19,791	69,791	-%

Latest Funds Activity

Are funds buying GPS calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own GPS

No. of Funds

Gap News

Schedule 13G FIlings of Gap

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	dodge & cox	10.4%	37,980,426	SC 13G/A
Feb 09, 2023	vanguard group inc	6.26%	22,836,184	SC 13G/A
Feb 03, 2023	blackrock inc.	6.4%	23,325,389	SC 13G
Sep 02, 2022	fisher robert j	13.4%	48,727,419	SC 13D/A
Sep 02, 2022	fisher william sydney	13.7%	49,838,669	SC 13D/A
Sep 02, 2022	fisher john j	15.3%	55,498,616	SC 13D/A
May 04, 2022	jpmorgan chase & co	4.2%	15,636,655	SC 13G/A
Apr 08, 2022	fisher robert j	13.1%	48,482,978	SC 13D/A
Apr 08, 2022	fisher william sydney	13.6%	50,343,940	SC 13D/A
Apr 08, 2022	fisher john j	16.1%	59,694,998	SC 13D/A

GPS Fair Value

Gap fair value in different scenarios

The table shows the Fair Value estimates for Gap for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	12.88 28.29%	17.70 76.29%	21.35 112.65%	26.06 159.56%	33.16 230.28%
Current Inflation	12.27 22.21%	16.41 63.45%	19.54 94.62%	23.62 135.26%	29.63 195.12%
Very High Inflation	11.47 14.24%	14.79 47.31%	17.33 72.61%	20.66 105.78%	25.44 153.39%

Historical Gap Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Gap

View All Filings

Date Filed	Form Type	Document
Mar 29, 2023	ARS	ARS
Mar 29, 2023	DEF 14A	DEF 14A
Mar 29, 2023	DEFA14A	DEFA14A
Mar 27, 2023	4	Insider Trading
Mar 27, 2023	4	Insider Trading
Mar 24, 2023	4	Insider Trading
Mar 24, 2023	4	Insider Trading
Mar 23, 2023	4	Insider Trading
Mar 16, 2023	4	Insider Trading
Mar 16, 2023	4	Insider Trading

Latest Insider Trading transactions for GPS

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-24	Breitbard Mark	sold	-201,268	8.7821	-22,918	president & ceo, gap brand
2023-03-23	Gruber Julie	acquired	-	-	19,108	chief legal&compliance officer
2023-03-23	Peters Sheila	sold (taxes)	-22,683	8.84	-2,566	evp & chief people officer
2023-03-23	Breitbard Mark	sold (taxes)	-107,088	8.84	-12,114	president & ceo, gap brand
2023-03-23	O'Connell Katrina	acquired	-	-	19,904	evp cfo
2023-03-23	O'Connell Katrina	sold (taxes)	-60,836	8.84	-6,882	evp cfo
2023-03-23	Breitbard Mark	acquired	-	-	35,032	president & ceo, gap brand
2023-03-23	Gruber Julie	sold (taxes)	-58,405	8.84	-6,607	chief legal&compliance officer
2023-03-23	Peters Sheila	acquired	-	-	7,962	evp & chief people officer
2023-03-16	Breitbard Mark	sold	-33,152	9.59	-3,457	president & ceo, gap brand

About Gap

Sonia Syngal

www.gapinc.com

65535

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 denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; 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, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, Athleta, and Banana Republic stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. As of December 31, 2021, the company had 2,835 company-operated stores and 564 franchise stores. It also provides its products through e-commerce sites. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.

GPS Income Statement

2023-01-28

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions	12 Months Ended
	Jan. 28, 2023	Jan. 29, 2022	Jan. 30, 2021
Net sales	$ 15,616,000,000	$ 16,670,000,000	$ 13,800,000,000
Cost of goods sold and occupancy expenses	10,257,000,000	10,033,000,000	9,095,000,000
Gross profit	5,359,000,000	6,637,000,000	4,705,000,000
Operating expenses	5,428,000,000	5,827,000,000	5,567,000,000
Operating income (loss)	(69,000,000)	810,000,000	(862,000,000)
Loss on extinguishment of debt	0	325,000,000	58,000,000
Interest expense	88,000,000	167,000,000	192,000,000
Interest income	(18,000,000)	(5,000,000)	(10,000,000)
Income (loss) before income taxes	(139,000,000)	323,000,000	(1,102,000,000)
Income tax expense (benefit)	63,000,000	67,000,000	(437,000,000)
Net income (loss)	$ (202,000,000)	$ 256,000,000	$ (665,000,000)
Weighted-average number of shares—basic	367	376	374
Weighted-average number of shares—diluted	367	383	374
Earnings (loss) per share—basic	$ (0.55)	$ 0.68	$ (1.78)
Earnings (loss) per share—diluted	$ (0.55)	$ 0.67	$ (1.78)

GPS Balance Sheet

2023-01-28

CONSOLIDATED BALANCE SHEETS - USD ($) shares in Thousands, $ in Millions	Jan. 28, 2023	Jan. 29, 2022
Current assets:
Cash and cash equivalents	$ 1,215	$ 877
Merchandise inventory	2,389	3,018
Other current assets	1,013	1,270
Total current assets	4,617	5,165
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	4,837	5,071
Property and equipment, net of accumulated depreciation	2,688	3,037
Operating lease assets	3,173	3,675
Other long-term assets	908	884
Total assets	11,386	12,761
Current liabilities:
Accounts payable	1,320	1,951
Accrued expenses and other current liabilities	1,219	1,367
Current portion of operating lease liabilities	667	734
Income taxes payable	50	25
Total current liabilities	3,256	4,077
Long-term liabilities:
Line of Credit Facility, Amount Outstanding	350	0
Long-term debt	1,486	1,484
Long-term operating lease liabilities	3,517	4,033
Other long-term liabilities	544	445
Total long-term liabilities	5,897	5,962
Stockholders' equity:
Common stock $0.05 par value, Authorized 2,300 shares for all periods presented	18	19
Additional Paid in Capital	27	43
Retained earnings	2,140	2,622
Accumulated other comprehensive income	48	38
Total stockholders' equity	2,233	2,722
Total liabilities and stockholders' equity	$ 11,386	$ 12,761
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, shares outstanding (in shares)	366,000	371,000
Common stock, shares issued (in shares)	366,000	371,000
Common stock, shares authorized (in shares)	2,300,000	2,300,000