GapFRA:GAP +1.05%72 Net Margin % is 9.69% as of Apr. 2026, which is 150% above its 10-year median of 3.87. GuruFocus rates FRA:GAP with a GF Score™ of 72/100 and a GF Value™ of €18.79 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Gap ranks better than 73.05% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Gap's Net Income for the
three
months ended in Apr. 2026 was €290 Mil. Gap's Revenue for the
three
months ended in Apr. 2026 was €2,990 Mil. Therefore, Gap's net margin for the quarter that ended in Apr. 2026 was 9.69%.
The historical rank and industry rank for Gap's Net Margin % or its related term are showing as below:
FRA:GAP'
s Net Margin % Range Over the Past 10 Years
Min: -4.82 Med: 3.87 Max: 6.25
Current: 6.25
FRA:GAP's Net Margin % is ranked better than 73.05% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.33
vs FRA:GAP: 6.25
Gap (FRA:GAP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Gap Net Margin % Related Terms
Gap Net Margin % Historical Data
* Premium members only.
The historical data trend for Gap's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:GAP vs URBN, BOOT, VSCO: Net Margin % Comparison
For the Apparel Retail subindustry, Gap's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gap Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Gap's Net Margin % distribution charts can be found below:
* The bar in red indicates where Gap's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gap (FRA:GAP) has a Net Margin % of 9.69% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Gap and its competitors. This is 150% above median its historical median of 3.87. According to the industry distribution chart, Gap ranks #304 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 27%.
Is Gap's Net Margin % too high?
Gap's current Net Margin % of 9.69% is 150% above median its 10-year median of 3.87. The Retail - Cyclical industry median Net Margin % is 2.33. Gap's value of 9.69% is 315.9% above this industry median. Based on the distribution chart, Gap ranks #304 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Gap has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gap's Net Margin % compare to URBN and BOOT?
According to the Retail - Cyclical industry distribution chart, Gap ranks #304 out of 1128 companies for Net Margin %. This puts Gap in the upper half of its industry. The industry median Net Margin % is 2.33. Gap's value of 9.69% is 315.9% above this benchmark. While the company's 10-year median is 3.87 vs. the industry median of 2.33, Gap has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.33, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gap's current Net Margin % of 9.69% is 315.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Gap and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gap's current Net Margin % is 9.69%, which is 150% above median its own 10-year median of 3.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gap stock overvalued right now?
Based on GuruFocus' analysis, Gap (FRA:GAP) is currently considered Fairly Valued. The stock's GF Value™ is €18.79, compared to a current price of €17.85 — trading 5% below its estimated fair value. The current Net Margin % is 9.69%, which is 150% above median its 10-year median of 3.87 and 315.9% above the Retail - Cyclical industry median of 2.33. Gap's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Gap (FRA:GAP), the current Net Margin % is 9.69% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gap (FRA:GAP) Overvalued in 2026?
Based on GuruFocus' analysis, Gap stock appears to be undervalued.
The current stock price of €17.85 is trading 5% below its estimated GF Value™ of €18.79.
GuruFocus considers Gap to be Fairly Valued.
Key valuation signals for FRA:GAP:
Net Margin %: 9.69% (150% above median its 10-year median of 3.87)
GF Value™: €18.79 vs. price of €17.85 (5% below fair value)
Industry Position: 315.9% above the Retail - Cyclical median (#304 of 1128)
No single metric tells the full story. See the FRA:GAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gap retails apparel, accessories, footwear, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,500 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
72GF Score
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