|GAP Overview
GAP

GAP INC

Consumer Discretionary • CIK: 0000039911

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Market Cap
$7.07B
P/E (TTM)
8.0x
Rev Growth (TTM)
Net Margin (TTM)
5.9%
FCF Yield (TTM)
FCF Margin (TTM)
5.1%

LATEST EARNINGS

Q3 FY2025
4 months ago
View source
Revenue
$3.94B
+3.0%
Net Income
$236.00M
-13.9%
EPS
$0.62
-13.9%
Gross
42.4% -0.4%
Operating
8.5% -0.8%
Net
6.0% -1.2%
  • Net sales increased 3% to $3.9 billion, exceeding outlook.
  • Comparable sales increased 5%, marking the seventh consecutive quarter of positive growth.
  • Old Navy comparable sales up 6%, Gap comparable sales up 7%, and Banana Republic comparable sales up 4%.
  • Gross margin of 42.4% exceeded outlook.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$769M
Q2 '25
$350M+257%
Q1 '25
$-223M-145%
FCF Margin
TTM5.1%
Q2 '259.4%+246%
Sector: 3.2%Above Avg
OCF Margin
OCF/NI1.37x
CapEx Coverage2.7x
FCF Yield
FCF Growth (2Y)
Cash Conversion Cycle

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldEst.
Est.7.9%
Div Yield3.3%
+
Est. Buyback4.5%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)3.3%
FCF Payout Ratio30.7%
Free Cash Flow (TTM)$769.0M
Stock Repurchases ()$75.0M
Est. Dividends Paid (TTM)$236.4M
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
36.9%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
5.7%
Asset Turnover
1.29x
Leverage (1+D/E)
1.43x
D/E: 0.43x
DuPont: 10.6%36.9% ROIC
Asset & CapEx Efficiency
Invested Cap Turn
6.44x
8Q:
CapEx Intensity
18.9%
8Q:
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
Revenue
$15.2B
$3.7B7.6%
$3.5B16.5%
$4.1B8.4%
$3.8B2.9%
$3.7B9.8%
$3.4B21.2%
$4.3B14.1%
$3.8B
Operating Income
$1.2B
$292.0M12.3%
$260.0M0.4%
$259.0M27.0%
$355.0M21.2%
$293.0M42.9%
$205.0M4.2%
$214.0M14.4%
$250.0M
Net Income
$889.0M
$216.0M11.9%
$193.0M6.3%
$206.0M24.8%
$274.0M33.0%
$206.0M30.4%
$158.0M14.6%
$185.0M15.1%
$218.0M
Operating Cash Flow
$1.2B
$448.0M420.0%
$-140.0M122.7%
$616.0M111.7%
$291.0M47.0%
$549.0M1730.0%
$30.0M95.7%
$700.0M130.3%
$304.0M
Free Cash Flow
$769.0M
$350.0M257.0%
$-223.0M144.7%
$499.0M249.0%
$143.0M68.9%
$460.0M830.2%
$-63.0M111.1%
$568.0M164.2%
$215.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
8.0x
Valuation Lenses
Earnings
8.0x
vs sector
Cash Flow
9.0x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
0.2P/E per %ROIC
ROIC: 36.9%
Shareholder Returns
Dividend
3.3%
Buyback
Total Yield
Market Cap$7.07B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
100/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
27.6%
8Q:
Return on Invested Capital (ROIC)Top 25%
36.9%
8Q:
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 5.7%
Asset Turnover: 1.29x

Earnings Quality

Cash Conversion

1.37x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin41.1%

Capital Efficiency

Invested Capital Turnover6.44x

Working Capital

Cash Conversion Cycle

Growth Quality & Momentum

Growth Rates

Revenue Growth YoY
N/A
OpInc Growth YoY
-0.3%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
41.1%
Operating
7.7%
Above Avg in sector
Net
5.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-0.8 pts
FCF: 5.1% | Net: 5.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $969.00M
Interest Coverage
+Net cash position: $969.00M
Leverage Metrics
Debt-to-Equity
0.43x
Balance sheet risk & solvency analysis