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Upturn AI Summary - About
The Gap, Inc.(GAP)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for GAP
09/25/2026: GAP (1-star) has a low Upturn Star Rating. Not recommended to BUY.
The Gap, Inc. is a major apparel retail company operating a diverse portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta. Its primary strength lies in the scale of the Old Navy brand and its established presence across both physical and digital channels. The core investment story centers on the company’s ability to modernize its core labels and scale the high-growth Athleta brand. Key risks include intense competition from fast-fashion retailers, exposure to macroeconomic volatility, and the execution risk associated with brand turnarounds. The company is often viewed as a value-oriented investment that may appeal to those looking for a dividend-paying play on retail recovery.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company is in a turnaround phase, making future growth trajectory less certain than pure growth plays. |
| Momentum investor | Weak fit | Momentum is highly dependent on specific quarterly operational improvements and sentiment shifts. |
| Value investor | Strong fit | The stock is often assessed based on its valuation relative to its retail assets and brand recovery potential. |
| Dividend investor | Strong fit while signal remains positive | The company maintains a history of dividend payments, appealing to income-focused investors. |
| Low-risk investor | Weak fit | Retail sector volatility and execution risks make this less suitable for highly risk-averse portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Retail stock prices often fluctuate significantly with changes in consumer sentiment. |
| Valuation risk | Medium | The stock valuation is tied to the successful execution of turnaround strategies. |
| Competition risk (Retail) | High | Intense competition from e-commerce and fast-fashion providers threatens market share. |
| Business quality | Medium | The company manages a portfolio of established brands that require continuous revitalization. |
| Dividend income | Medium | Dividends are dependent on sustained operational profitability and cash flow. |
| Execution risk | High | Successfully managing multiple distinct brands requires precise operational alignment. |
Price Behavior
Steep Decline
The stock price has dropped sharply with strong downward pressure.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit -30.52% | Avg. Invested days 35 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/25/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.62B USD | Price to earnings Ratio 6.42 | 1Y Target Price 26.51 |
Price to earnings Ratio 6.42 | 1Y Target Price 26.51 | ||
Volume (30-day avg) 7.8M shares | Beta 2.06 | 52 Weeks Range 17.94 - 28.88 | Updated Date 09/25/2026 |
52 Weeks Range 17.94 - 28.88 | Updated Date 09/25/2026 | ||
Dividends yield (FY) 3.20% | Basic EPS (TTM) 3.38 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Old Navy | Family apparel and accessories sold primarily in the Americas. | The primary volume driver for the company, focusing on high-frequency, value-based sales. |
| Gap Brand | Global sales of casual clothing and basics. | A legacy brand currently undergoing efforts to modernize its appeal to younger demographics. |
| Athleta | Women's performance and lifestyle apparel. | The key growth-oriented segment targeting the premium activewear market. |
Earnings Date
Report Date 2026-08-27 | When After Market | Estimate 0.5 | Actual 0.52 |
Profitability
Profit Margin 8.14% | Operating Margin (TTM) 6.71% |
Management Effectiveness
Return on Assets (TTM) 4.78% | Return on Equity (TTM) 33.78% |
Valuation
Trailing PE 6.42 | Forward PE 8.89 | Enterprise Value 10.77B | Price to Sales(TTM) 0.5 |
Enterprise Value 10.77B | Price to Sales(TTM) 0.5 | ||
Enterprise Value to Revenue 0.7 | Enterprise Value to EBITDA 4.67 | Shares Outstanding 351.27M | Shares Floating 193.60M |
Shares Outstanding 351.27M | Shares Floating 193.60M | ||
Percent Insiders 36.29 | Percent Institutions 66.36 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About The Gap, Inc.
Exchange NYSE | Headquarters San Francisco, CA, United States | ||
IPO Launch date 1987-07-23 | CEO, President & Director Mr. Richard Dickson | ||
Sector Consumer Cyclical | Industry Apparel Retail | Full time employees 79000 | Website https://www.gapinc.com |
Full time employees 79000 | Website https://www.gapinc.com | ||
The Gap, Inc. operates as an apparel retail company in the United States, Canada, Japan, Taiwan, and internationally. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
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