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.
3.44%
0.04
56.37%
S&P 500
17.78%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.69%
EBIT Growth (5y)
44.40%
EBIT to Interest (avg)
5.76
Debt to EBITDA (avg)
0.92
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
2.98
Tax Ratio
26.26%
Dividend Payout Ratio
27.30%
Pledged Shares
0
Institutional Holding
68.35%
ROCE (avg)
18.90%
ROE (avg)
16.60%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
2.38
EV to EBIT
6.82
EV to EBITDA
4.77
EV to Capital Employed
2.51
EV to Sales
0.52
PEG Ratio
0.67
Dividend Yield
291.08%
ROCE (Latest)
36.82%
ROE (Latest)
25.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 82.23 %
DIVIDEND PAYOUT RATIO(Y)
Highest at 26.57%
RAW MATERIAL COST(Y)
Fallen by 0.7% (YoY
CASH AND EQV(HY)
Highest at USD 4,949 MM
DIVIDEND PER SHARE(HY)
Highest at USD 0
-2What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,223 MM
Here's what is working for Gap, Inc.
Debt-Equity Ratio
Lowest at 82.23 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at USD 4,949 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)
Dividend Payout Ratio
Highest at 26.57%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.7% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Gap, Inc.
Operating Cash Flow
Lowest at USD 1,223 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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