Gap Intrinsic Stock Value – GAP Reports Q2 FY2024 Earnings Results for August 24, 2023
August 31, 2023
🌥️Earnings Overview
On August 24 2023, GAP ($NYSE:GPS) reported its second quarter FY2024 financial results, ending July 31 2023. There was a decrease of 8.0% year over year in total revenue, which amounted to USD 3548.0 million. Net income for the period was USD 117.0 million, compared to a loss of USD 49.0 million in the same period the year before.
Stock Price
On Thursday, August 24, 2023, GAP reported its earnings results for the second quarter of fiscal year 2024. Also, GAP’s sales for the quarter were up 1% from last year’s figures. The company attributed this growth to its focus on digital transformation initiatives such as mobile applications and online presence. The company is focused on expanding its online presence and digital transformation initiatives which should help sustain this growth in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gap. More…
| Total Revenues | Net Income | Net Margin |
| 15.11k | 108 | 0.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gap. More…
| Operations | Investing | Financing |
| 1.34k | -266 | -425 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gap. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.85k | 8.59k | 6.13 |
Key Ratios Snapshot
Some of the financial key ratios for Gap are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.4% | -15.9% | 2.0% |
| FCF Margin | ROE | ROA |
| 5.7% | 8.4% | 1.7% |
Analysis – Gap Intrinsic Stock Value
GoodWhale has conducted a comprehensive analysis of GAP‘s financials. Our proprietary Valuation Line has been applied to determine the fair value of GAP share, and based on our findings, we estimate that it is around $15.3. Currently, GAP stock is traded at $9.5, which represents a significant undervaluation of 38.0%. Therefore, investors may find GAP to be a compelling investment opportunity at the current market price. More…
Peers
Gap Inc. is an American clothing and accessories retailer founded in 1969 by Don and Doris Fisher. The company operates six primary brands: Gap, Banana Republic, Old Navy, Athleta, Intermix, and Janie and Jack. Gap Inc. is headquartered in San Francisco, California. As of February 2019, Gap Inc. operated 3,727 stores worldwide and employed approximately 135,000 people. Abercrombie & Fitch Co. is an American lifestyle retailer that focuses on selling casual wear for young people. The company was founded in 1892 by David T. Abercrombie and Ezra Fitch and is headquartered in New Albany, Ohio. As of February 2019, the company operated 792 stores across the globe and employed approximately 23,000 people. The Children’s Place Inc. is an American children’s clothing retailer founded in 1969. The company is headquartered in Secaucus, New Jersey and as of February 2019, operated 1,097 stores worldwide. The company employs approximately 19,000 people. World Co Ltd is a Japanese retail company founded in 1949. The company operates a chain of department stores in Japan and as of February 2019, employed approximately 31,000 people.
– Abercrombie & Fitch Co ($NYSE:ANF)
Abercrombie & Fitch Co, a leading retailer of casual apparel, has a market cap of 817.96M as of 2022. The company’s ROE is 14.85%. Abercrombie & Fitch Co operates stores under the Abercrombie & Fitch, abercrombie kids, and Hollister Co. banners in the United States and internationally. The company also sells its merchandise through its e-commerce Websites.
– Children’s Place Inc ($NASDAQ:PLCE)
The Children’s Place Inc is a publicly traded company with a market capitalization of $498.72 million as of 2022. The company operates in the children’s apparel industry and generates revenue through the sale of children’s clothing, shoes, and accessories. The Children’s Place Inc has a return on equity of 55.72%. The company’s primary target market is parents of children aged 0-12 years old.
– World Co Ltd ($TSE:3612)
Suntech Power Holdings Co., Ltd. is a solar company. The Company manufactures solar cells and modules, which it sells to original equipment manufacturers and system integrators. Suntech also develops, designs, builds and sells photovoltaic systems that primarily use the Company’s solar modules.
Summary
Despite a challenging environment, GAP was able to report positive earnings results for the second quarter of FY 2024. Total revenue of USD 3548.0 million was 8.0% lower than the same period the year before, but net income improved significantly from a loss of -49.0 million to a profit of USD 117.0 million. This is a testament to the company’s ability to nurture and protect its core business in uncertain times. Investors may be encouraged by these results and should watch GAP’s progress to see if these positive earnings trends will continue in the future.
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