GILEAD SCIENCES INC (NASDAQ:GILD) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

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

What does the Valuation looks like for GILD

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. GILD scores a 8 out of 10:

• Based on the Price/Earnings ratio, GILD is valued cheaper than 97.16% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.10. GILD is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.27% of the companies listed in the same industry.
• GILD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 97.16% of the companies in the same industry.
• 97.16% of the companies in the same industry are more expensive than GILD, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• GILD has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as GILD's earnings are expected to grow with 25.40% in the coming years.

Exploring GILD's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. GILD scores a 8 out of 10:

• GILD has a Return On Assets of 0.81%. This is amongst the best in the industry. GILD outperforms 91.12% of its industry peers.
• GILD has a Return On Equity of 2.48%. This is amongst the best in the industry. GILD outperforms 92.18% of its industry peers.
• GILD has a better Return On Invested Capital (17.45%) than 97.51% of its industry peers.
• The 3 year average ROIC (15.57%) for GILD is below the current ROIC(17.45%), indicating increased profibility in the last year.
• The Profit Margin of GILD (1.67%) is better than 91.65% of its industry peers.
• With an excellent Operating Margin value of 37.70%, GILD belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
• GILD's Operating Margin has improved in the last couple of years.
• GILD's Gross Margin of 78.26% is amongst the best of the industry. GILD outperforms 83.48% of its industry peers.

How do we evaluate the Health for 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. GILD has received a 5 out of 10:

• An Altman-Z score of 3.45 indicates that GILD is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.45, GILD is doing good in the industry, outperforming 77.09% of the companies in the same industry.
• The Debt to FCF ratio of GILD is 2.59, which is a good value as it means it would take GILD, 2.59 years of fcf income to pay off all of its debts.
• GILD has a better Debt to FCF ratio (2.59) than 94.14% of its industry peers.

A Closer Look at Growth for 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. GILD boasts a 4 out of 10:

• The Earnings Per Share has grown by an impressive 77.93% over the past year.
• GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.07% yearly.
• 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.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.