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The Gap, Inc. (GAP) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

The Gap, Inc.

GAPMarket cap $8.36BPrice $23.8

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells casual apparel through Gap, Old Navy, Banana Republic, and Athleta, dressing millions of Americans in denim since popularizing khakis and jeans as everyday wear. Old Navy alone now outsells the flagship brand that built the entire company.

In Bastion Portfolios?

52W Return+12%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%3

Revenue Forecast

Rev CAGR (1y)+1%3

Rev CAGR (3y)+2%2

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1+14%7

EPS Growth Y+2+9%6

EPS Growth Y+3+6%5

Quality

Margins

EBIT Margin6%3

Net Income Margin8%5

Free Cash Flow Margin6%5

Debt

Net Debt/EBITDA1.25

Efficiency

ROE34%9

ROA10%8

Earnings Stability66

GEAR+AVERAGE40

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)99

P/E Ratio (Forward 3y)89

P/BV2.16

EV Multiples

EV/EBITDA Fwd78

EV/EBIT Fwd108

Yield

Free Cash Flow Yield11.5%9

Dividend Yield3.0%7

Momentum

Short term

1 month return+6%9

3 month return+26%10

YTD return-5%4

Mid term

Price vs 52wHigh83%6

1 year return+16%7

Long term

3 year return+152%9

5 year return+22%5

Risk Shield

Price Risk

Beta1.13

Volatility47%3

Free Cash Flow

Free Cash Flow Margin6%5

Free Cash Flow Yield11.5%9

Quality

ROCE10%6

Earnings Stability66

Net Debt/EBITDA1.25

02Growth

Is it actually growing, and how fast?

GAPThe Gap

Revenue FY26$15.4B

GROWTH RATING↗

VERY WEAK14 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+2%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+14%7

EPS growth, FY28E+9%6

EPS growth, FY29E+6%5

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 9%/yr vs revenue 2%/yr), so margins should widen.

WATCH

Revenue fell 0.5%/yr over the last 3 years and is set to grow around 2%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 86% of companies worldwide.

Revenue fell 0.5%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 2%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG83 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+6%9

3-month return+26%10

YTD return-5%4

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return+16%7

3-year return+152%9

5-year return+22%5

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +152% over three years and +22% over five, ahead of 60% of the market.

It's up 16% over the past year, but 17% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+6%) and over three months (+26%).

WATCH

Returns sit at the market level so far this year (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Gap. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

GAPThe Gap

Revenue FY26$15.4B

GROWTH RATING↗

VERY WEAK14 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+2%2

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+14%7

EPS growth, FY28E+9%6

EPS growth, FY29E+6%5

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 9%/yr vs revenue 2%/yr), so margins should widen.

WATCH

Revenue fell 0.5%/yr over the last 3 years and is set to grow around 2%/yr from here.

WEAKNESSES

Growth is the weak spot here, trailing 86% of companies worldwide.

Revenue fell 0.5%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 2%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG83 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+6%9

3-month return+26%10

YTD return-5%4

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return+16%7

3-year return+152%9

5-year return+22%5

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +152% over three years and +22% over five, ahead of 60% of the market.

It's up 16% over the past year, but 17% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+6%) and over three months (+26%).

WATCH

Returns sit at the market level so far this year (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Gap. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community