Gap Inc. (The)
Find Ratings ReportsGAP INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased 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 subsector.
During the same period, stockholders' equity ("net worth") has increased by 16.21% from the same quarter last year.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 4298.0 | 4243.0 |
EBITDA ($mil) | 342.0 | 108.0 |
EBIT ($mil) | 214.0 | -30.0 |
Net Income ($mil) | 185.0 | -273.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 0.0 | 1247.0 |
Total Assets ($mil) | 11044.0 | 11386.0 |
Total Debt ($mil) | 5441.0 | 6020.0 |
Equity ($mil) | 2595.0 | 2233.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 41.88 | 36.81 |
EBITDA Margin | 7.95 | 2.54 |
Operating Margin | 4.98 | -0.71 |
Sales Turnover | 1.35 | 1.37 |
Return on Assets | 4.54 | -1.77 |
Return on Equity | 19.34 | -9.05 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.42 | 1.42 |
Debt/Capital | 0.68 | 0.73 |
Interest Expense | 0.0 | 25.0 |
Interest Coverage | 0.0 | -1.2 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 371.0 | 366.0 |
Div / share | 0.15 | 0.15 |
EPS | 0.49 | -0.75 |
Book value / share | 6.99 | 6.1 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 6982660.0 | 9455172.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 23.55 for the Clothing, Clothing Accessories, Shoe, Jewelry Reta subsector and a significant discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.29 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 11.33. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, GAP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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GPS 17.16 | Peers 23.55 | GPS 5.57 | Peers 16.96 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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GPS 14.38 | Peers 19.84 | GPS NM | Peers 1.61 | |||||||||||||||||||||
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 discount to its peers. |
Neutral. 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's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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GPS 3.29 | Peers 11.33 | GPS 343.63 | Peers 329.94 | |||||||||||||||||||||
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. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. GPS is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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GPS 0.57 | Peers 1.84 | GPS -4.66 | Peers 6.34 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. GPS significantly trails its peers on the basis of sales growth. |
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