ScoreWhy is Gap, Inc. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Low Debt Company with Strong Long Term Fundamental Strength
3
Flat results in Jul 25
- OPERATING CASH FLOW(Y) Lowest at USD 1,215 MM
4
With ROCE of 35.42%, it has a attractive valuation with a 2.51 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 6.03%, its profits have risen by 23.6% ; the PEG ratio of the company is 0.4
5
High Institutional Holdings at 74.41%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Gap, Inc. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Gap, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Gap, Inc.
-2.65%
0.04
56.37%
S&P 500
22.99%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.17%
EBIT Growth (5y)
39.72%
EBIT to Interest (avg)
5.76
Debt to EBITDA (avg)
0.92
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
2.90
Tax Ratio
26.26%
Dividend Payout Ratio
31.06%
Pledged Shares
0
Institutional Holding
85.50%
ROCE (avg)
18.90%
ROE (avg)
16.60%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
2.42
EV to EBIT
7.42
EV to EBITDA
5.15
EV to Capital Employed
2.85
EV to Sales
0.54
PEG Ratio
3.26
Dividend Yield
263.55%
ROCE (Latest)
38.43%
ROE (Latest)
21.65%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,646 MM
INTEREST COVERAGE RATIO(Q)
Highest at 2,581.82
CASH AND EQV(HY)
Highest at USD 5,563 MM
DIVIDEND PER SHARE(HY)
Highest at USD 0
OPERATING PROFIT(Q)
Highest at USD 568 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.24 %
PRE-TAX PROFIT(Q)
Highest at USD 445 MM
NET PROFIT(Q)
Highest at USD 335.23 MM
EPS(Q)
Highest at USD 0.9
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Gap, Inc.
Interest Coverage Ratio
Highest at 2,581.82
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 1,646 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 568 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 16.24 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 445 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 445 MM has Grown at 59.5%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 335.23 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 335.23 MM has Grown at 63.73%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.9
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 5,563 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at USD 0
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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