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A look at a High Market Cap Stock: The Gap, Inc., GPS

The Gap, Inc., GPS is in the exchange NYSE and its industry is Apparel Stores in the sector of Services. Based in USA, The Gap, Inc., GPS  has a market cap of 10050.1. Since its IPO date on the 7/23/1987, The Gap, Inc., GPS performance year to date is 5.51%. Today The Gap, Inc., GPS has gained -4.31%, with a current price of 25.34.

Ownership of the company is 5.30% for insider ownership while institutional ownership is 59.80%. The management of the company have seen the company have a payout ratio of 51.60%. Return of assets are at 9.40%, with return on investment at 22.80%.

In terms of debt levels and profit levels, The Gap, Inc., GPS is seeing a long-term debt/equity of 0.52. While Total debt/equity is 0.68. With a profit margin of 4.60%, this is combined with a gross margin of 35.60%, and operating margin of 8.20%. The Gap, Inc. ability to meet debt levels, with a current ratio of 1.5, while the quick ratio is 0.8.

For the last year The Gap, Inc., GPS has seen a EPS growth of -22.30%. A performance for the year of -19.91%. The 52-week high is -21.04%, and the 52-week low is 50.69%. The average volume for The Gap, Inc., GPS is 6841500.

With a target price of 23.7, can The Gap, Inc., GPS reach this target? Looking at the value indicators of The Gap, Inc., GPS. The Gap, Inc. has a P/E of 14.32 and a forward P/E of 12.3. Perhaps the more useful indicator than P/E, is PEG which has a value of 1.8. The Gap, Inc. also has a P/S and a P/B of 0.65 and 3.94 respectively. For P/cash, The Gap, Inc. has a value of 5.98, while it is 16.13 for P/free cash flow.

At the current price of 25.34, The Gap, Inc. has a dividend yield of 3.63%. We see a return on equity of 27.90%.

Looking more long-term The Gap, Inc., is projected to get an EPS growth for the next five years of 7.98%. In the short-term an EPS growth of 7.40% in the next year is forecasted. This is after a EPS growth of -22.30% for this year and for the last five years a 3.50% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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