Gap Stock Analysis, Valuation (NYSE:GPS)

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$30.05 $0.66 (2.15%) GPS stock closing price Jul 20, 2018 (Closing)

Watch the robo advisor video of Gap stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for GPS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Gap Inc Stock Rating 3.6/5

Amigobulls GPS stock analysis uses latest quarter 2019 Q1 financial data like Gap revenue growth, profit margins and cash flows. Gap valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Gap stock rating which is indicative of the company's financial performance.

Should you buy GPS stock?

  • Gap sales grew by 10% year on year in 2018-04.
  • Gap had a healthy average operating margin of 8.98 over the last 4 quarters.
  • Net margins came in at average 5.4% for Gap over the last twelve months.
  • GPS stock is trading at an earnings multiple of 13.7 which is better than the sector average of 21.5.
  • Gap has an attractive ROIC (Return on Invested Capital) of 23.6
  • Gap has a good Return On Equity (ROE) of 28.6.

Should you sell GPS stock?

  • Long term revenue growth of 0.4 over the past 5 years has been disappointing.
  • The company has negative cash flow from operations.
  • Gap has a negative FCF (Free Cash Flow) margin of -5.4.

Comments on this video and Gap stock

Amigobulls Gap stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of GPS stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Gap revenue growth and profit or net income are two main metrics which help in identifying whether GPS stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about GPS stock.