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The Gap, Inc. (Gap Inc., the "Company," "we," and "our") is a house of iconic American brands offering apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Gap Inc. is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and thir…
$23.39
+$0.22 (+0.95%)
Price from 12 days ago
Operating margin is thin at 7.26%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 1.9%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 21% versus the prior year, cash generation momentum has weakened.
9.3x earnings, 7.9x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$15.40B
▲ +1.9% YoY
Net Income (TTM)
$962M
▼ -3.3% YoY
Op. Margin
8.44%
▼ -0.1pp YoY
ROIC
10.22%
▼ -1.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.12B
▼ -20.8% YoY
Op. Cash Flow (TTM)
$1.65B
▼ -13.0% YoY
Net Debt
$3.08B
Cash & Equiv.
$2.56B
5Y CAGR: +2.2%
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