Gap Inc (GAP) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Retail / Consumer Discretionary · as of Sep 24, 2026
Gap Inc (GAP)
A forensic read on Gap Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
3.7
Distress distance
Clean
Earnings quality
3
Forensic signals
5.8
P / E (ttm)
21.5%
ROE
$7.5B
Market cap
3.45%
Dividend yield
1.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Gap Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 3.7, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+1.1%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +2% over the last 2 years to FY2026 (+1.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~2%.
+10.1%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +10.1% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 19% of net operating assets, against an accruals ratio of 10.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
12.0%
FY2026
Return on invested capital.Return on invested capital is 12.0% in the latest fiscal year and rising across FY2024–FY2026 from 8%. The capital base behind it grew +11% across FY2024–FY2026, from $6.1B to $6.7B, and the return did not fall doing it, so the dollars added over that window earned at least the 8% the older base was already earning.
Key fundamentals
Latest Revenue$15.37B
Revenue Growth YoY+1.9%
Revenue CAGR (2yr)+1.6%
Net Margin5.3%
Free Cash Flow$823.0M
Return on Equity21.5%
Debt / Equity0.39x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Gap Inc's actual 10-K/10-Q/8-K filings?