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The Gap, Inc (GPS) is a leading apparel retail business with stocks listed in the US. It opened the day at US$31.65 after a previous close of US$31.31. During the day the price has varied from a low of USD31.63 to a high of USD32.38. The latest price was USD32.31 (25 minute delay). The Gap is listed on the NYSE. All prices are listed in US Dollars.
How to buy shares in The Gap
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for The Gap. Find the share by name or ticker symbol: GPS. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until The Gap reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$31.6, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of The Gap, depending on your broker.
- Check in on your investment. Congratulations, you own a part of The Gap. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- The Gap key stats
- Compare share trading platforms
- Is The Gap stock a buy or sell?
- The Gap performance over time
- Can I short The Gap shares?
- Is The Gap suitable for ethical investing?
- Are The Gap shares over-valued?
- The Gap's financials
- How volatile are The Gap shares?
- Does The Gap pay a dividend?
- Have The Gap shares ever split?
- Other common questions
The Gap share priceUse our graph to track the performance of GPS stocks over time.
The Gap shares at a glance
|52-week range||US$9.5528 - US$37.63|
|50-day moving average||US$33.7603|
|200-day moving average||US$27.0456|
|Dividend yield||US$0 (0%)|
|Earnings per share (TTM)||US$1.149|
Compare share trading platforms to buy stock
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Is it a good time to buy The Gap stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
The Gap price performance over time
|1 month (2021-05-13)||-3.55%|
|3 months (2021-03-12)||4.87%|
|6 months (2020-12-11)||54.96%|
|1 year (2020-06-12)||206.55%|
|2 years (2019-06-13)||77.92%|
|3 years (2018-06-13)||0.25%|
|5 years (2016-06-13)||70.86%|
Is The Gap under- or over-valued?
Valuing The Gap stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of The Gap's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
The Gap's P/E ratio
The Gap's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 28x. In other words, The Gap shares trade at around 28x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
The Gap's PEG ratio
The Gap's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.1492. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into The Gap's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
The Gap's EBITDA
The Gap's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1 billion.
The EBITDA is a measure of a The Gap's overall financial performance and is widely used to measure a its profitability.
The Gap financials
|Revenue TTM||US$15.7 billion|
|Operating margin TTM||3.32%|
|Gross profit TTM||US$6.1 billion|
|Return on assets TTM||2.48%|
|Return on equity TTM||16.9%|
|Market capitalisation||US$11.9 billion|
TTM: trailing 12 months
Shorting The Gap shares
There are currently 12.8 million The Gap shares held short by investors – that's known as The Gap's "short interest". This figure is 4.7% down from 13.4 million last month.
There are a few different ways that this level of interest in shorting The Gap shares can be evaluated.
The Gap's "short interest ratio" (SIR)
The Gap's "short interest ratio" (SIR) is the quantity of The Gap shares currently shorted divided by the average quantity of The Gap shares traded daily (recently around 7.0 million). The Gap's SIR currently stands at 1.82. In other words for every 100,000 The Gap shares traded daily on the market, roughly 1820 shares are currently held short.
However The Gap's short interest can also be evaluated against the total number of The Gap shares, or, against the total number of tradable The Gap shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case The Gap's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 The Gap shares in existence, roughly 30 shares are currently held short) or 0.0628% of the tradable shares (for every 100,000 tradable The Gap shares, roughly 63 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against The Gap.
Find out more about how you can short The Gap stock.
The Gap's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like The Gap.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
The Gap's total ESG risk score
Total ESG risk: 10.38
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and The Gap's overall score of 10.38 (as at 12/31/2018) is excellent – landing it in it in the 4th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like The Gap is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
The Gap's environmental score
Environmental score: 1.61/100
The Gap's environmental score of 1.61 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that The Gap is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
The Gap's social score
Social score: 3.58/100
The Gap's social score of 3.58 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that The Gap is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
The Gap's governance score
Governance score: 2.19/100
The Gap's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that The Gap is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
The Gap's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. The Gap scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that The Gap hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||10.38|
|Total ESG percentile||3.96|
|Environmental score percentile||1|
|Social score percentile||1|
|Governance score percentile||1|
|Level of controversy||3|
The Gap share dividends
Dividend payout ratio: 36.28% of net profits
Recently The Gap has paid out, on average, around 36.28% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.15% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), The Gap shareholders could enjoy a 1.15% return on their shares, in the form of dividend payments. In The Gap's case, that would currently equate to about $0 per share.
While The Gap's payout ratio might seem fairly standard, it's worth remembering that The Gap may be investing much of the rest of its net profits in future growth.
The Gap's most recent dividend payout was on 27 July 2021. The latest dividend was paid out to all shareholders who bought their shares by 5 July 2021 (the "ex-dividend date").
Have The Gap's shares ever split?
The Gap's shares were split on a 3:2 basis on 21 June 1999. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your The Gap shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for The Gap shares which in turn could have impacted The Gap's share price.
The Gap share price volatility
Over the last 12 months, The Gap's shares have ranged in value from as little as US$9.5528 up to US$37.63. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while The Gap's is 1.6652. This would suggest that The Gap's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
The Gap overview
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Janie and Jack brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, Athleta, and Banana Republic stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. As of March 04, 2021, the company had 3,100 company-operated stores and 615 franchise stores. It also provides its products through e-commerce sites. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.
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