The Gap, Inc. [GPS] is following upward trend in the market concluded with the last trading session. The shares of the Services sector company has a current value of $16.51 after GPS shares went up by 1.32% during the last trading session. One of the reasons why Services stocks may go bullish is increased momentum in the press.
The Gap, Inc. [NYSE:GPS]: Analyst Rating and Earnings
Its stock price has been found in the range of 15.11 to 31.39. This is compared to its latest closing price of $16.30.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 27 Feb (In 83 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 5.00%. 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 15.99, and its Long-Term Debt to Total Capital is 35.15.
What about valuation? This company’s Enterprise Value to EBITDA is 3.19 and its Total Debt to EBITDA Value is 0.66. The Enterprise Value to Sales for this firm is now 0.37, 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 7.74. 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 380.04M shares outstanding, amounting to a total market cap of $6.19B. Its stock price has been found in the range of 15.11 to 31.39. At its current price, it has moved down by -47.39% from its 52-week high, and it has moved up 9.30% from its 52-week low.
This stock’s Beta value is currently 0.71, which indicates that it is 2.37% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 48.65. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Gap, Inc. [GPS] a Reliable Buy?
Shares of The Gap, Inc. [GPS], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.