NASDAQ:GILD is probably undervalued for the fundamentals it is displaying.

Discover GILEAD SCIENCES INC (NASDAQ:GILD), an undervalued stock highlighted by our stock screener. NASDAQ:GILD showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Analysis for NASDAQ:GILD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:GILD has achieved a 7 out of 10:

• The Price/Earnings ratio is 11.94, which indicates a very decent valuation of GILD.
• 98.31% of the companies in the same industry are more expensive than GILD, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 25.54, GILD is valued rather cheaply.
• A Price/Forward Earnings ratio of 11.24 indicates a reasonable valuation of GILD.
• Based on the Price/Forward Earnings ratio, GILD is valued cheaper than 98.65% of the companies in the same industry.
• GILD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.54, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 97.30% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, GILD is valued cheaply inside the industry as 98.31% of the companies are valued more expensively.
• GILD has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination for NASDAQ:GILD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GILD, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 9.42%, GILD belongs to the top of the industry, outperforming 97.13% of the companies in the same industry.
• GILD's Return On Equity of 26.33% is amongst the best of the industry. GILD outperforms 98.14% of its industry peers.
• The Return On Invested Capital of GILD (12.57%) is better than 96.80% of its industry peers.
• The 3 year average ROIC (11.27%) for GILD is below the current ROIC(12.57%), indicating increased profibility in the last year.
• GILD's Profit Margin of 21.45% is amongst the best of the industry. GILD outperforms 97.64% of its industry peers.
• The Operating Margin of GILD (30.16%) is better than 97.64% of its industry peers.
• With an excellent Gross Margin value of 78.81%, GILD belongs to the best of the industry, outperforming 85.83% of the companies in the same industry.

Health Assessment of NASDAQ:GILD

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GILD has achieved a 5 out of 10:

• GILD's Altman-Z score of 2.87 is fine compared to the rest of the industry. GILD outperforms 71.16% of its industry peers.
• GILD has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as GILD would need 3.18 years to pay back of all of its debts.
• The Debt to FCF ratio of GILD (3.18) is better than 95.11% of its industry peers.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:GILD scores a 4 out of 10:

• GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.13%, which is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of GILD for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.