The Gap, Inc. [NYSE:GPS]: Analyst Rating and Earnings
Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding The Gap, Inc. [GPS] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in January. On average, stock market experts give GPS an Hold rating. Its stock price has been found in the range of 21.75 to 34.21. This is compared to its latest closing price of $22.27.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Gap, Inc. [GPS] is sitting at 3.00. This is compared to 1 month ago, when its average rating was 3.04.
For the quarter ending in Jan-19 The Gap, Inc. [GPS] generated $4.62 billion in sales. That’s 1.46% lower than the average estimate of $4.69 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Thu 30 May (In 13 Days).
Fundamental Analysis of The Gap, Inc. [GPS]
Now let’s turn to look at profitability: with a current Operating Margin for The Gap, Inc. [GPS] sitting at +8.00 and its Gross Margin at +38.05, this company’s Net Margin is now 6.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 28.86, and its Return on Invested Capital has reached 22.40%. Its Return on Equity is 29.95, and its Return on Assets is 12.51. These metrics all suggest that The Gap, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Gap, Inc. [GPS] has generated a Total Debt to Total Equity ratio of 35.15. Similarly, its Total Debt to Total Capital is 26.01, while its Total Debt to Total Assets stands at 15.52. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 35.15, and its Long-Term Debt to Total Capital is 26.01. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 4.78 and its Total Debt to EBITDA Value is 0.66. The Enterprise Value to Sales for this firm is now 0.55, and its Total Debt to Enterprise Value stands at 0.13. The Gap, Inc. [GPS] has a Price to Book Ratio of 2.66, a Price to Cash Flow Ratio of 7.02 and P/E Ratio of 8.56. These metrics all suggest that The Gap, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, The Gap, Inc. [GPS] earns $122,815 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 51.73 and its Total Asset Turnover is 2.07. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.98 and its Current Ratio is 1.96. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
The Gap, Inc. [GPS] has 388.66M shares outstanding, amounting to a total market cap of $8.66B. Its stock price has been found in the range of 21.75 to 34.21. At its current price, it has moved by -35.37% from its 52-week high, and it has moved 1.66% from its 52-week low.
This stock’s Beta value is currently 0.52, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 23.70. This stock, according to these metrics, is currently Oversold.
Conclusion: Is The Gap, Inc. [GPS] a Reliable Buy?
Shares of The Gap, Inc. [GPS], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.