GILEAD SCIENCES INC (GILD)
US3755581036 - Common Stock
Taking everything into account, GILD scores 6 out of 10 in our fundamental rating. GILD was compared to 581 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year GILD was profitable.
GILD had a positive operating cash flow in the past year.
In the past 5 years GILD has always been profitable.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
GILD has a Return On Assets of 0.86%. This is amongst the best in the industry. GILD outperforms 93.61% of its industry peers.
GILD has a Return On Equity of 2.76%. This is amongst the best in the industry. GILD outperforms 94.65% of its industry peers.
GILD has a better Return On Invested Capital (16.18%) than 97.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 14.58%.
The last Return On Invested Capital (16.18%) for GILD is above the 3 year average (14.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.76% | ||
| ROIC | 16.18% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)14.77%
ROIC(5y)11.39%
1.3 Margins
GILD's Profit Margin of 1.76% is amongst the best of the industry. GILD outperforms 93.96% of its industry peers.
GILD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 31.81%, GILD belongs to the best of the industry, outperforming 98.79% of the companies in the same industry.
GILD's Operating Margin has declined in the last couple of years.
The Gross Margin of GILD (75.78%) is better than 86.01% of its industry peers.
In the last couple of years the Gross Margin of GILD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| PM (TTM) | 1.76% | ||
| GM | 75.78% |
OM growth 3Y27.82%
OM growth 5Y-1.87%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GILD is creating value.
The number of shares outstanding for GILD remains at a similar level compared to 1 year ago.
The number of shares outstanding for GILD has been reduced compared to 5 years ago.
Compared to 1 year ago, GILD has a worse debt to assets ratio.
2.2 Solvency
GILD has an Altman-Z score of 2.52. This is not the best score and indicates that GILD is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.52, GILD is in the better half of the industry, outperforming 72.54% of the companies in the same industry.
GILD has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as GILD would need 3.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.19, GILD belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that GILD has dependencies on debt financing.
GILD's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. GILD is outperformed by 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 2.52 |
ROIC/WACC2.11
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GILD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, GILD is doing worse than 88.08% of the companies in the same industry.
GILD has a Quick Ratio of 1.08. This is a bad value and indicates that GILD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, GILD is doing worse than 89.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
GILD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.28%.
GILD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
The Revenue has been growing slightly by 1.51% in the past year.
Measured over the past years, GILD shows a small growth in Revenue. The Revenue has been growing by 4.15% on average per year.
EPS 1Y (TTM)-33.28%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-196.35%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%5.26%
3.2 Future
Based on estimates for the next years, GILD will show a small growth in Earnings Per Share. The EPS will grow by 4.01% on average per year.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.50% yearly.
EPS Next Y-45.68%
EPS Next 2Y1.69%
EPS Next 3Y3.1%
EPS Next 5Y4.01%
Revenue Next Year1.9%
Revenue Next 2Y1.52%
Revenue Next 3Y1.94%
Revenue Next 5Y2.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.77, which indicates a correct valuation of GILD.
97.06% of the companies in the same industry are more expensive than GILD, based on the Price/Earnings ratio.
GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.83, the valuation of GILD can be described as very reasonable.
97.93% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
GILD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 97.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GILD is valued cheaply inside the industry as 99.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.13 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
GILD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)13.61
EPS Next 2Y1.69%
EPS Next 3Y3.1%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 4.65%, which is a nice return.
GILD's Dividend Yield is rather good when compared to the industry average which is at 26.33. GILD pays more dividend than 98.79% of the companies in the same industry.
GILD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
The dividend of GILD has a limited annual growth rate of 5.90%.
GILD has paid a dividend for at least 10 years, which is a reliable track record.
GILD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GILD pays out 791.32% of its income as dividend. This is not a sustainable payout ratio.
GILD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP791.32%
EPS Next 2Y1.69%
EPS Next 3Y3.1%
GILEAD SCIENCES INC
NASDAQ:GILD (5/31/2024, 7:00:00 PM)
After market: 63.97 -0.3 (-0.47%)64.27
+0.19 (+0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap80.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 8.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)13.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.81% | ||
| PM (TTM) | 1.76% | ||
| GM | 75.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.28%
EPS 3Y-0.24%
EPS 5Y
EPS Q2Q%
EPS Next Y-45.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.51%
Revenue growth 3Y3.17%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y