Fundamental analysis · SEC EDGAR · TTM through 01/08/2026

Fundamental analysis of Gap Inc

GAP · NYSE · Consumer

Fundamental quality

ATTRACTIVE

80

out of 100

Gap Inc is a mature, stable business: it earns money solidly (net margin 8.1%) but grows slowly (1.9% a year). On fundamental quality it scores 80 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Gap is the American fashion group of four brands: Old Navy for the budget-minded family, Gap the original banner, Banana Republic for dressing up and Athleta for women's athletics. After years adrift, it is attempting a creative revival under new leadership.

What will shape its future

  • Old Navy: half the business and the average American consumer's thermometer.
  • The Gap brand's relevance, in the middle of a creative rescue operation.
  • The clothing-spend cycle, the first thing cut when wallets tighten.

Breakdown by area

I.Growth
87

EPS growth: 42.7% · Revenue growth: 1.9%

II.Profitability
74

Net margin: 8.1% · ROE: 31.6% · ROIC: 36.9%

III.Financial health
79

Net debt/EBITDA: -0.28x · FCF: 6.2%

Source: SEC EDGAR · TTM through 01/08/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 64%
ROEbeats 73%
Growthbeats 16%
Cash generationbeats 48%
Less debtbeats 83%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Gap Inc strengths

  • Growing earnings per share (42.7% annualized).
  • Outstanding return on equity (ROE of 31.6%): it puts shareholder capital to good use.
  • It has turned profitable after years of losses.
  • Net cash position: more cash than debt.

Gap Inc risks and weaknesses

  • Erratic free cash flow, with several years in the red.
  • Weak revenue growth (1.9% annualized).

Gap Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202113,800-665-155228
202216,670256115607
202315,616-202-78271
202414,8895021,112-385
202515,0868441,039-845
202615,366816823-1,124

Between 2021 and 2026, revenue went from $13,800M to $15,366M (+11%) and net income went from -$665M to $816M (+223%). It has also reduced its net debt over the period.

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended August 1, 2026, versus the half-year ended August 2, 2025 (SEC filings):

  • Revenue-0.6%
  • Net income+105.4%

What changed with the August 1, 2026 results

Compared with the previous close (May 2, 2026), this is what moved in its accounts:

  • Quality score7880
  • Net margin6.2%8.1%
  • ROE26.3%31.6%
  • FCF margin7.3%6.2%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.66

per share, yearly

30.3% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Gap Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Gap Inc a good company to invest in?

In terms of business quality, Gap Inc scores 80 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Gap Inc a profitable company?

Gap Inc is profitable, with a net margin of 8.1%, though a thin one.

Does Gap Inc have a lot of debt?

No. Gap Inc has a net cash position: more cash than debt.

Is Gap Inc growing?

Its revenue has grown 1.9% annualized in recent years and its earnings per share 42.7%.

Does Gap Inc generate cash?

Yes. It converts about 6.2% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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