GPS : NYSE : Services
$23.19 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 6272800.0
08/23/17 - 4:02 PM ET

Financial Analysis


GAP INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has increased by 15.08% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)3799.03851.0
EBITDA ($mil)0.0528.0
EBIT ($mil)451.0377.0
Net Income ($mil)271.0125.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1609.01681.0
Total Assets ($mil)7617.07737.0
Total Debt ($mil)1248.01745.0
Equity ($mil)2945.02559.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin38.9341.63
EBITDA Margin0.013.71
Operating Margin11.879.79
Sales Turnover2.032.01
Return on Assets11.09.22
Return on Equity28.4527.9
Debt Q2 FY17 Q2 FY16
Current Ratio1.771.55
Debt/Capital0.30.41
Interest Expense0.018.0
Interest Coverage0.020.94


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)392.0398.0
Div / share0.230.23
EPS0.680.31
Book value / share7.516.43
Institutional Own % n/a n/a
Avg Daily Volume6359503.05686227.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 20.31 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 3.02 indicates valuation on par with the S&P 500 average of 3.02 and a significant discount versus the industry average of 22.92. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, GAP INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GPS 10.80 Peers 20.31   GPS 6.12 Peers 12.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

GPS is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GPS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GPS 10.96 Peers 17.97   GPS 0.59 Peers 1.48

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

GPS is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

GPS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GPS 3.02 Peers 22.92   GPS 18.64 Peers 11.22

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GPS is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

GPS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GPS 0.57 Peers 1.37   GPS -0.42 Peers 5.72

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GPS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GPS significantly trails its peers on the basis of sales growth

 

 

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