The Gap, Inc. (GAP) Stock Analysis
Last updated Sep 8, 2026
Health Check
Last analyzed Sep 7, 2026
- Financial Health 75
- Profitability 65
- Business Quality 60
- Balance Sheet 55
- Cash Flow 45
Why this rating?
Health 61/100 — Good Quality
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
The Gap, Inc. (GAP) is a Apparel Retail company in the Consumer Cyclical sector. Compound Radar rates The Gap, Inc. 61/100 (Good Quality) due to solid business quality, manageable leverage, and attractive valuation.
Investment profile
- Quality Moderate
- Growth Soft
- Balance Sheet Adequate
- Valuation Attractive
Financial highlights
Valuation
- P/E 6.74
- Forward P/E 8.48
- PEG 1.16
- EV/Revenue 0.73
Profitability
- Revenue Growth -2.0%
- Gross Margin 40.5%
- Operating Margin 6.7%
- Net Margin 8.1%
- ROE 33.8%
Financial strength
- Cash $2.48B
- Debt $5.72B
- Net Cash $-3.24B
- Free Cash Flow $823.00M
- Current Ratio 1.82
Similar companies
Peers in Apparel Retail, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Ross Stores, Inc. Apparel Retail ROST$229.31 67 Health 67 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Urban Outfitters, Inc. Apparel Retail URBN$79.43 66 Health 66 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- The TJX Companies, Inc. Apparel Retail TJX$128.92 64 Health 64 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- Abercrombie & Fitch Co. Apparel Retail ANF$151.43 63 Health 63 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- lululemon athletica inc. Apparel Retail LULU$103.19 59 Health 59 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Carter's, Inc. Apparel Retail CRI$32.28 58 Health 58 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- American Eagle Outfitters, Inc. Apparel Retail AEO$17.22 57 Health 57 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Victorias Secret & Co. Apparel Retail VSXY$78.47 55 Health 55 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks The Gap, Inc. (GAP).