GPS : NYSE : Services
$25.58 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 7,940,000
07/27/16 - 4:03 PM ET

Financial Analysis


GAP INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has decreased by 12.40% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)3438.03657.0
EBITDA ($mil)370.0534.0
EBIT ($mil)222.0386.0
Net Income ($mil)127.0239.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1313.01234.0
Total Assets ($mil)7507.07495.0
Total Debt ($mil)1742.01352.0
Equity ($mil)2522.02879.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin39.4741.84
EBITDA Margin10.7614.6
Operating Margin6.4610.56
Sales Turnover2.082.18
Return on Assets10.7616.55
Return on Equity32.0343.1
Debt Q1 FY16 Q1 FY15
Current Ratio1.541.89
Debt/Capital0.410.32
Interest Expense19.019.0
Interest Coverage11.6820.32


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)398.0419.0
Div / share0.230.23
EPS0.320.56
Book value / share6.346.87
Institutional Own % n/a n/a
Avg Daily Volume7540806.06332641.0

Valuation


HOLD. GAP INC's P/E ratio indicates a significant discount compared to an average of 24.35 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.82 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. 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 12.24 Peers 24.35   GPS 6.16 Peers 15.74

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 11.76 Peers 20.26   GPS NM Peers 2.04

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GPS 3.82 Peers 13.96   GPS -30.77 Peers -3.13

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.

 

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

However, GPS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GPS 0.62 Peers 1.56   GPS -4.54 Peers 8.06

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

 

 

Latest Stock Upgrades/Downgrades