GPS : NYSE : Retail Trade
$32.69 | %
Today's Range: 32.02 - 32.72
Avg. Daily Volume: 4564500.0
02/23/18 - 4:02 PM ET

Financial Analysis


GAP INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 10.93% from the same quarter last year.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)3838.03798.0
EBITDA ($mil)517.0568.0
EBIT ($mil)378.0416.0
Net Income ($mil)229.0204.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)1353.01522.0
Total Assets ($mil)7895.08007.0
Total Debt ($mil)1248.01744.0
Equity ($mil)3024.02726.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin43.3643.13
EBITDA Margin13.4714.95
Operating Margin9.8510.95
Sales Turnover1.961.93
Return on Assets10.938.36
Return on Equity28.5324.57
Debt Q3 FY17 Q3 FY16
Current Ratio1.731.6
Debt/Capital0.290.39
Interest Expense18.020.0
Interest Coverage21.020.8


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)389.0399.0
Div / share0.230.23
EPS0.580.51
Book value / share7.776.83
Institutional Own % n/a n/a
Avg Daily Volume4953099.05739889.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 24.16 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.51. Conducting a second comparison, its price-to-book ratio of 4.29 indicates a premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 38.06. 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 15.36 Peers 24.16   GPS 8.67 Peers 15.50

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 14.34 Peers 21.54   GPS 0.63 Peers 1.44

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 4.29 Peers 38.06   GPS 29.94 Peers 12.42

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 0.84 Peers 1.65   GPS 0.21 Peers 5.19

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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