The Gap, Inc. GAP
Composite 56/100; the shares have moved about 52% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 31/100 — a moderate mark against it.
Income ranks 74/100 — a moderate point in its favour. Valuation ranks 69/100 — a moderate point in its favour. Quality ranks 67/100 — a moderate point in its favour.
Momentum ranks 31/100 — a moderate mark against it. Growth ranks 32/100 — a moderate mark against it.
What the company does The Gap, Inc. (GAP) designs and sells apparel, accessories, and personal care products under brands like Old Navy, Gap, Banana Republic, and Athleta. It operates through company-owned stores, franchises, and digital platforms globally, with licensing partnerships in select regions.
Key financials GAP reports strong profitability metrics: ROE 27.6%, ROA 6.8%, and ROCE 14.5%. Gross margins stand at 40.5%, with operating and net margins at 12.7% and 6.2%, respectively. Revenue growth is modest at 1.0%, but EPS growth is robust at 76.5%. The company maintains a healthy balance sheet with a current ratio of 1.81 and interest coverage of 14.59.
Stock health The stock shows weak momentum with a 3-month decline of -15.22% and a 6-month drop of -23.22%. The RSI(14) is neutral at 54.20, and the stock is -29.44% below its 52-week high. Sideravia’s Overall score is 63.3, with Valuation (87.3) and Income (89.0) pillars strongest, while Momentum (27.3) is weak.
Price vs fair value The stock trades at a **discount** of 98.00% to our fair-value estimate of 40.35 and a **discount** of 31.50% to the analyst 12-month target of 26.80. - AI initiatives aim to enhance efficiency (Sourcing Journal) - Met 2025 fabric sourcing goals, though emissions cuts lag (Supply Chain Dive) - Launched an employee creator program to boost engagement (Retail Dive) - Valuation metrics (P/E 7.54, EV/EBITDA 5.19) suggest deep undervaluation - High FCF yield (12.7%) supports income appeal
Looking forward GAP’s focus on AI-driven operations and sustainability goals may improve margins and brand positioning. Analysts see potential upside to 26.80, but execution risks remain given weak near-term momentum. The deep valuation discount and strong cash flows could attract value-focused investors.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.