Is This Why The Gap Inc. (GPS) Share Has Been Dropping?

The Gap Inc. (GPS) is owned by a number of high-value investors. Its largest direct holder is William S. Fisher Independent Director with 10,579,646 shares. The second-largest direct holder is Robert J. Fisher Non-Executive Chairman of the Board, Interim President and Interim Chief Executive Officer, with 9,593,481 shares of the company’s stock. In third place with 6,561,335 shares of GPS is John J. Fisher Independent Director.

Now turning to institutional ownership of The Gap Inc. (GPS), The Vanguard Group, Inc. is the top holder with 28.65 million shares. The next largest fund holder of this company’s stock is Dodge & Cox with 21.08 million shares. In the third-place spot with 15.86 million shares is BlackRock Fund Advisors.

This company’s stock price was $16.19 at the previous market close, with its latest volume reaching 6785154. Compare that to its average daily volume of 7.23M. Given the fact that this stock has 380.04M shares outstanding, its current market value is sitting at $6.15B. This publicly-traded stock’s 60-month Beta is 0.71. Its Price to Sales ratio is 0.38, its Price to Cash Flow ratio is 5.69, and its Price to Book ratio is 1.67.

GPS stock has achieved a 5-day range of $16.18 to $17.27, with a total performance of -5.65% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $15.85 to $18.39, generating a -4.43% change during the period. In the past three months, this stock’s price has changed by +2.53%, trading in the range of $15.11 to $19.86.

In the past 5 days, shares of GPS have made a new high 1 time. In the last month, it has made a new high 3 times, and in the past 3 months, it has made a new high 8 times.

Now let’s turn to this public company’s earnings. For the quarter ending 10/30/2019, the earnings per share (EPS) was reported at 0.53. This is a 0.02 difference compared to the consensus estimate of 0.51, amounting to an earnings surprise of 3.90%. In the previous quarter, which ended in 10/30/2019, the consensus estimate was 0.53, making for an earnings surprise of 18.90%. For the quarter ending 4/29/2019, EPS was reported at 0.24, generating a -25.00% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 01-2019, was $1.0 billion. This is compared to the prior year, where Net Income was $848.0 million. Meanwhile, this company’s Operating Cash Flow was $1.38 billion for the year, compared to $1.38 billion in 2017. Capital Expenditures for the year were reportedly -$705.0 million, compared to -$731.0 million, and Free Cash flow was $676.0 million compared to the prior year’s $649.0 million.

The Gap Inc. (GPS) stock currently has a Financial Strength score of 5/10. This is due to a combination of factors, including a Cash to Debt ratio of 0.14, an Equity to Asset ratio of 0.26, a Debt to Equity ratio of 2.16 and a Debt to EBITDA of 4.37. The Interest Coverage of this stock is 15.47, its Piotroski F-Score is 4, its Altman Z-Score is 2.27.

This publicly-traded company’s Profitability and Growth score is 8/10, thanks to a combination of things: an Operating Margin of 7.29, a Net Margin of 4.97, a ROE of 22.75, and a ROC of 16.26.

Shifting focus now to Valuation and Return for GPS, this company’s Price to Tangible Book is 1.66 and its Price to Median PS Value is 0.45. Price to Peter Lynch Fair Value for GPS is now 0.00, and this organization’s Price to Graham Number is 0.75. Meanwhile, its Forward Rate of Return (Yactman) is 8.1.

Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for GPS is sitting at 0.58, while its Current Ratio is 1.43. This stock’s PB Ratio is 1.65, its PS Ratio is 0.39, its Forward PE Ratio is 7.99, and its PE Ratio without NRI is 7.61. Similarly, its Shiller PE Ratio is 6.8, its Price to Owner Earnings is 6.96, its Price to Free Cash Flow is 22.21 and its Price to Operating Cash Flow is 4.58.