STOCKROUTINES

The Gap, Inc.

Last Updated
Share Price
$11.56
Market Cap
$4.27B
Dividend Yield
N/A
EPS
$0.67
P/E
17.25

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.

0%
Income
  • Revenue $16.67B
  • Gross Profit $6.64B
  • Net Income $256M
  • Gross Margin 39.81%
  • Net Margin 1.54%
Cash Flow
  • Free Cash Flow (FCF) $0
  • Free Cash Flow To Equity (FCFE) $0
  • Dividends Paid $0
  • Debt Repayment $0
  • Net Stock Repurchased $0
Balance Sheet
  • Shareholder Equity $2.72B
  • Debt To Equity (D/E) 219.03%
  • Book Value $6.8B
  • Book Value Per Share (BVPS) $0
  • Return On Invested Capital (ROIC) 2.86%
The financial metrics for The Gap, Inc. presented below are for the financial year 2022.
P/E 26.54 Price To Earnings Ratio
P/S 0.41 Price To Sales Ratio
P/B 1 Price To Book Ratio
P/CF N/A Price To Operating Cash Flow Ratio
P/FCF N/A Price To Free Cash Flow Ratio
P/FCFE N/A Price To Levered Free Cash Flow Ratio
P/EBT 21.04 Price To Pre-Tax Income
PEG 1.39 Trailing Price/Earnings To Growth Ratio
EV/Sales 1.06 Enterprise Value To Sales Ratio
EBIT/EV 0.03 EBIT To Enterprise Value Ratio
EV/EBITDA 36.06 Enterprise Value to EBITDA Ratio
D/E 2.19 Debt To Equity Ratio
ROE 9.6% Return On Equity
ROIC 2.86% Return On Invested Capital
DPR 0% Dividend Payout Ratio
Current Ratio 1.27 Current Liquidity Ratio
EPS Growth 19.1% Earnings Per Share Growth Rate
Graham Number $16.63 Benjamin Graham's Number
Piotroski Score N/A Piotroski F-Score
Beta N/A Beta Coefficient Value
    2022 2021 2020 2019 2018
Revenue $16.67B$13.8B$16.38B$16.58B$15.86B
Cost of Revenue $10.03B$9.1B$10.25B$10.26B$9.79B
Gross Profit $6.64B$4.71B$6.13B$6.32B$6.07B
Gross Profit Margin 39.81%34.09%37.44%38.13%38.26%
Operating Expenses $-4.21B$5.57B$5.56B$4.96B$4.59B
Research & Development Expenses (R&D) $0$0$0$0$0
Selling, General & Administrative Expenses (SG&A) $0$0$0$0$0
Other Expenses $-4.21B$5.57B$5.56B$4.96B$4.59B
Net Income $256M$-665M$351M$1B$848M
Net Profit Margin 1.54%-4.82%2.14%6.05%5.35%
Operating Income $810M$-862M$574M$1.36B$1.48B
Other Income & Expenses (Net) $-487M$-240M$-46M$-40M$-55M
Depreciation & Amortization $0$507M$557M$578M$559M
Interest Income $-5M$10M$30M$33M$19M
Interest Expense $167M$192M$76M$73M$74M
Income Tax Expense $67M$-437M$147M$319M$576M
Effective Tax Rate 20.74%0%27.84%24.13%40.45%
EBITDA $490M$-403M$1.13B$1.97B$2.06B
EBIT $490M$-910M$574M$1.4B$1.5B
EBT N/AN/AN/AN/AN/A
Shares Outstanding 376M374M376M385M393M
Diluted Shares Outstanding 383M374M378M388M396M
EPS $0.68$-1.78$0.93$2.61$2.16
Diluted EPS $0.67$-1.78$0.93$2.59$2.14
    2022 2021 2020 2019 2018
Operating Cash Flow $0$237M$1.41B$1.38B$1.38B
Net Income $256M$-665M$351M$1B$848M
Depreciation & Amortization $0$507M$557M$578M$559M
Deferred Income Tax $0$-137M$-81M$65M$61M
Stock-Based Compensation $0$77M$68M$91M$87M
Change In Working Capital $-1.04B$817M$-770M$-30M$245M
Other Non-Cash Items $780M$-362M$1.29B$-326M$-420M
Cash From Investing $0$-510M$-894M$-1B$-668M
Purchases Of Investments $0$-508M$-293M$-464M$0
Sales / Maturities of Investments $0$388M$293M$177M$0
Property, Plant & Equipment Investments $0$-392M$-1.04B$-705M$-731M
Net Acquisitions $0$0$-69M$0$0
Other Investing Activites $0$2M$220M$-9M$63M
Cash From Financing $0$895M$-560M$-749M$-731M
Debt Repayment $0$-1.81B$0$0$-67M
Dividend Payments $0$0$-364M$-373M$-361M
Payout Ratio 0%0%103.7%37.19%42.57%
Net Common Stock Repurchased $0$0$200M$398M$315M
Common Stock Repurchased $0$0$-200M$-398M$-315M
Common Stock Issued $0$0$200M$398M$315M
Other Financing Activites $0$2.7B$4M$22M$12M
Accounts Receivables $0$0$0$0$0
Accounts Payables $0$564M$66M$-78M$-90M
Inventory $0$-305M$4M$-154M$-142M
Other Working Capital $1.09B$2.12B$1.31B$2.08B$2.11B
Capital Expenditure (CAPEX) $0$-392M$-1.04B$-705M$-731M
Effect Of Foreign Exchange On Cash $0$13M$4M$-10M$19M
Net Change In Cash $0$635M$-39M$-379M$0
Free Cash Flow (FCF) $0$-155M$366M$676M$649M
Free Cash Flow To Equity (FCFE) $0$-1.96B$366M$676M$582M
    2022 2021 2020 2019 2018
Total Assets $12.76B$13.77B$13.68B$8.05B$7.99B
Total Current Assets $5.17B$6.01B$4.52B$4.25B$4.57B
Cash & Short-Term Investments $877M$2.4B$1.65B$2.46B$1.78B
Cash & Cash Equivalents $877M$1.99B$1.36B$2.17B$1.78B
Short-Term Investments $0$410M$290M$288M$0
Net Receivables $0$363M$316M$282M$282M
Inventory $3.02B$2.45B$2.16B$2.13B$2B
Other Current Assets $1.27B$796M$390M$-617M$506M
Total Non-Current Assets $7.6B$7.76B$9.16B$3.8B$3.42B
Property, Plant & Equipment (PP&E) $6.71B$7.06B$8.52B$2.91B$2.81B
Goodwill & Intangible Assets $0$170M$230M$204M$204M
Goodwill $0$109M$109M$109M$109M
Intangible Assets $0$61M$121M$95M$95M
Long-Term Investments $0$0$0$0$0
Other Non-Current Assets $884M$533M$409M$682M$412M
Other Assets $0$0$0$0$0
Total Liabilities $5.96B$11.15B$10.36B$4.5B$4.84B
Total Current Liabilities $4.08B$3.88B$3.21B$2.17B$2.46B
Accounts Payables $1.95B$1.74B$1.17B$1.13B$1.18B
Short-Term Debt $2.2B$831M$920M$0$0
Deferred Revenue $0$231M$226M$227M$0
Other Current Liabilities $-76M$1.08B$889M$821M$1.28B
Total Non-Current Liabilities $1.89B$7.27B$7.15B$2.32B$2.38B
Long-Term Debt $9.55B$6.83B$1.25B$1.25B$1.25B
Other Non-Current Liabilities $-7.67B$438M$4.15B$146M$295M
Total Debt $11.75B$7.66B$2.17B$1.25B$1.25B
Total Shareholder Equity $2.72B$2.61B$3.32B$3.55B$3.14B
Common Stock $0$19M$19M$19M$19M
Retained Earnings $2.62B$2.5B$3.26B$3.08B$3.08B
Accumulated Other Comprehensive Income Loss (AOCL) $38M$9M$40M$53M$36M
Other Shareholder Equity $2.72B$85M$0$400M$8M
Total Investments $0$0$290M$288M$14M
Net Debt $10.88B$5.68B$805M$-918M$-534M
Book Value $6.8B$2.61B$3.32B$3.55B$3.14B

Discounted Cash Flow

Use the Discounted Cash Flow (DCF) tool to estimate the intrinsic value of The Gap, Inc. stock.

Assumptions
Forecast Period
Required Return
  Low Mid High
Revenue Growth
FCFE Margin
Perpetual Growth
Terminal P/FCFE
Assumptions

The number of assumptions to make for each forecast.

Forecast Period

The number of years to forecast future cash flows. These future cash flows are used to determine the intrinsic present value for the stock.

It is generally recommended to select a longer period for more established companies with stable financial histories.

Forecast Period

The compounding annual rate of return required, according to your investment objectives. This is used to discount back future cash flows.

Revenue Growth

Estimate the annual compounding revenue growth rate. You can use the historical compounding annual growth rates provided below as a guide.

  • 1 Year 18.89%
  • 3 Years -1.55%
  • 5 Years -0.83%
  • 10 Years -0.83%
Levered Free Cash Flow Margin

Estimate levered free cash flow (FCFE) as a percentage of revenue. You can use the historical margins provided below as a guide.

  • 1 Year 0%
  • 3 Years -3.99%
  • 5 Years -0.85%
  • 10 Years -0.85%
Perpetual Growth Rate

Estimate the compounding annual growth rate at which revenues will grow in perpetuity after the forecast period. This is the first method used to calculate the terminal value.

Values of between 2% and 5% are generally recommended.

Price To Levered Free Cash Flow

Estimate the price to levered free cash flow (P/FCFE) for the stock after the forecast period. This is the second method used to calculate the terminal value.

This method for calculating the terminal value can be preferred for shorter forecast periods. You can use the historical rations provided below as a guide.

  • 1 Year N/A
  • 3 Years 9.5
  • 5 Years 12.28
  • 10 Years 12.28
Chief Executive Officer (CEO) Mr. Mark Breitbard
Full-Time Employees 97K
Industry Apparel Retail
Sector Consumer Cyclical
Country US
Website https://www.gapinc.com

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