When you look at NASDAQ:GILD, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Take a closer look at GILEAD SCIENCES INC (NASDAQ:GILD), a remarkable value stock uncovered by our stock screener. NASDAQ:GILD excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

A Closer Look at Valuation for NASDAQ:GILD

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:GILD, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio of 10.50, the valuation of GILD can be described as reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 98.48% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 26.56, GILD is valued rather cheaply.
• The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of GILD.
• 98.82% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.62, GILD is valued rather cheaply.
• GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GILD is cheaper than 97.63% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 98.65% of the companies listed in the same industry.
• The decent profitability rating of GILD may justify a higher PE ratio.

Exploring NASDAQ:GILD's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:GILD, the assigned 7 is a significant indicator of profitability:

• GILD's Return On Assets of 9.42% is amongst the best of the industry. GILD outperforms 97.29% of its industry peers.
• The Return On Equity of GILD (26.33%) is better than 98.31% of its industry peers.
• GILD's Return On Invested Capital of 13.13% is amongst the best of the industry. GILD outperforms 97.29% of its industry peers.
• GILD's Profit Margin of 21.45% is amongst the best of the industry. GILD outperforms 97.80% of its industry peers.
• Looking at the Operating Margin, with a value of 30.16%, GILD belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 78.81%, GILD belongs to the top of the industry, outperforming 86.13% of the companies in the same industry.

A Closer Look at Health for NASDAQ:GILD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GILD has received a 5 out of 10:

• GILD has a Altman-Z score of 2.68. This is in the better half of the industry: GILD outperforms 69.54% of its industry peers.
• The Debt to FCF ratio of GILD is 3.18, which is a good value as it means it would take GILD, 3.18 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of GILD (3.18) is better than 95.26% of its industry peers.

Growth Examination for NASDAQ:GILD

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GILD boasts a 4 out of 10:

• The Earnings Per Share has grown by an nice 11.13% over the past year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of GILD contains the most current fundamental analsysis.

Disclaimer

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.