Gap Inc (GPS, Financial), a prominent player in the Retail - Cyclical industry, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $4.87 billion, with a stock price of $13.17. Over the past week, the stock has gained 7.61%, and over the past three months, it has seen a remarkable 44.08% gain. According to the GF Value, the stock is currently fairly valued at $13.83, a significant increase from its undervalued status three months ago when the GF Value was $15.25.
Company Overview
Gap Inc is a renowned retailer of apparel, accessories, and personal-care products under various brands including Gap, Old Navy, Banana Republic, and Athleta. Old Navy is the company's most profitable brand, generating more than half of Gap's sales. The company operates approximately 2,600 stores in North America, Europe, and Asia, and franchises about 850 more in various regions. Gap also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Founded in 1969, Gap is based in San Francisco.
Profitability Analysis
Gap Inc's Profitability Rank stands at 7/10, indicating a relatively high level of profitability. The company's Operating Margin is 1.67%, better than 38.33% of companies in the industry. Its ROE is 4.67%, better than 46.24% of companies, and its ROA is 0.94%, better than 41.32% of companies. The company's ROIC is 1.57%, better than 38.29% of companies. Over the past 10 years, Gap has been profitable for 8 years, which is better than 58.86% of companies.
Growth Prospects
Despite its profitability, Gap's Growth Rank is relatively low at 2/10. The company's 3-year revenue growth rate per share is -0.60%, better than 37.31% of companies. Its 5-year revenue growth rate per share is 0.60%, better than 44.25% of companies. However, the company's total revenue growth rate for the next 3 to 5 years is estimated to be -1.76%, which is better than only 9.62% of companies.
Major Stockholders
The top three holders of Gap Inc's stock are Dodge & Cox, holding 10.18% of the shares, Richard Pzena (Trades, Portfolio), holding 2.76% of the shares, and Ken Fisher (Trades, Portfolio), holding 1.64% of the shares.
Competitive Landscape
Gap Inc faces stiff competition from other companies in the Retail - Cyclical industry. Its main competitors are Urban Outfitters Inc (URBN, Financial) with a market cap of $3.17 billion, American Eagle Outfitters Inc (AEO, Financial) with a market cap of $3.57 billion, and Abercrombie & Fitch Co (ANF, Financial) with a market cap of $3.17 billion.
Conclusion
In conclusion, Gap Inc's stock has seen a significant surge over the past three months, with a 44.08% gain. The company's profitability is relatively high, with a Profitability Rank of 7/10. However, its growth prospects are relatively low, with a Growth Rank of 2/10. The company faces stiff competition from other companies in the Retail - Cyclical industry. Despite these challenges, the company's stock is currently fairly valued according to the GF Value, indicating potential for future growth and profitability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
