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Should You Consider The Gap, Inc. (NYSE:GPS)?

Simply Wall St

I've been keeping an eye on The Gap, Inc. (NYSE:GPS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe GPS has a lot to offer. Basically, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Gap here.

6 star dividend payer with excellent balance sheet

GPS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that GPS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. GPS seems to have put its debt to good use, generating operating cash levels of 1.14x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NYSE:GPS Historical Debt, August 27th 2019

For those seeking income streams from their portfolio, GPS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 5.9%, making it one of the best dividend companies in the market.

NYSE:GPS Historical Dividend Yield, August 27th 2019

Next Steps:

For Gap, there are three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GPS’s future growth? Take a look at our free research report of analyst consensus for GPS’s outlook.
  2. Historical Performance: What has GPS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GPS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.