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Is The Gap, Inc.(NYSE: GPS), a large market cap stock a smart buy?

With a market cap of has a large market cap size. The Gap, Inc. (NYSE: GPS) has been on the stock market since its IPO date on the 7/23/1987. The Gap, Inc. is in the Apparel Stores industry and Services sector. Average volume for The Gap, Inc., is 7892.24, and so far today it has a volume of 4466406. Performance year to date since the 7/23/1987 is 7.39%.

To help you determine whether The Gap, Inc. is undervalued the following values will help you decide. P/E is 13.03 and forward P/E is 12.56. PEG perhaps more useful shows that The Gap, Inc. has a value for PEG of 1.63. P/S ratio is 0.64 and the P/B ratio is 4.07. The P/Cash and P/Free cash flow is 7.65 and 21.59 respectively.

At the current price The Gap, Inc. is trading at, 25.43 (-1.40% today), The Gap, Inc. has a dividend yield of 3.57%, and this is covered by a payout ratio of 46.10%. Earnings per share (EPS) is 1.98, and this is looking to grow in the next year to 10.13% after growing -22.30% this past year. EPS growth quarter over quarter is -43.50%, and -6.00% for sales growth quarter over quarter.

The number of shares outstanding is 389.32, and the number of shares float is 216.78. The senior management bring insider ownership to 5.30%, and institutional ownership is at 60.10%. The float short is 15.64%, with the short ratio at a value of 4.3. Management has seen a return on assets of 10.70%, and also a return on investment of 22.80%.

The ability for The Gap, Inc., to deal with debt, means it current ratio is 1.5, and quick ratio is 0.8. Long term debt/equity is 0.52 and total debt/equity is 0.69. In terms of margins, The Gap, Inc. has a gross margin of 35.60%, with its operating margin at 8.70%, and The Gap, Inc. has a profit margin of 5.20%.

The 52 week high is -28.22%, with 51.23% being its 52 week low. The 20 day simple moving average is 21.63% and the 200 day simple moving average is 5.78%.

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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Stephen Butters

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