Is the business good?
How good a business is GAP?
The Gap, Inc. earns 40% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
40%
Return on invested capital · cost of capital 9.0% · 31 points above what the capital costs: growth creates value
- Operating margin
- 8.4%
Operating margin · Apparel Retail median 11% · 12 months to Q1 2026
- Cash conversion
- 1.17×
Cash conversion · 1.00× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −6.3% |
| FY2021 | 4.9% |
| FY2022 | −0.44% |
| FY2023 | 3.8% |
| FY2024 | 7.4% |
| FY2025 | 7.3% |
Details›
- Gross margin12 months to Q1 2026
- 41%
- Operating margin12 months to Q1 2026
- 8.4%
- Net margin12 months to Q1 2026
- 6.3%
- Free cash flow margin
- 7.3%
- Revenue, trailing twelve months
- $15.4B
- Free cash flow, trailing twelve months
- $1.12B
- Net income, trailing twelve months
- $962M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 40%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.