GILEAD SCIENCES INC (1GILD.MI) Stock Fundamental Analysis
BIT:1GILD - Euronext Milan - US3755581036 - Common Stock - Currency: EUR
Overall 1GILD gets a fundamental rating of 6 out of 10. We evaluated 1GILD against 71 industry peers in the Biotechnology industry. While 1GILD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1GILD may be a bit undervalued, certainly considering the very reasonable score on growth This makes 1GILD very considerable for value investing!
1. Profitability
1.1 Basic Checks
1GILD had positive earnings in the past year.
In the past year 1GILD had a positive cash flow from operations.
Each year in the past 5 years 1GILD has been profitable.
Each year in the past 5 years 1GILD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1GILD (0.81%) is better than 70.42% of its industry peers.
With a decent Return On Equity value of 2.48%, 1GILD is doing good in the industry, outperforming 74.65% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.45%, 1GILD belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1GILD is in line with the industry average of 13.59%.
The last Return On Invested Capital (17.45%) for 1GILD is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.48% | ||
| ROIC | 17.45% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
1.3 Margins
1GILD has a Profit Margin of 1.67%. This is in the better half of the industry: 1GILD outperforms 73.24% of its industry peers.
In the last couple of years the Profit Margin of 1GILD has declined.
Looking at the Operating Margin, with a value of 37.70%, 1GILD belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
In the last couple of years the Operating Margin of 1GILD has grown nicely.
Looking at the Gross Margin, with a value of 78.26%, 1GILD is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
In the last couple of years the Gross Margin of 1GILD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.7% | ||
| PM (TTM) | 1.67% | ||
| GM | 78.26% |
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1GILD is creating value.
Compared to 1 year ago, 1GILD has about the same amount of shares outstanding.
1GILD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1GILD is higher compared to a year ago.
2.2 Solvency
1GILD has an Altman-Z score of 3.38. This indicates that 1GILD is financially healthy and has little risk of bankruptcy at the moment.
1GILD has a Altman-Z score of 3.38. This is amongst the best in the industry. 1GILD outperforms 84.51% of its industry peers.
1GILD has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as 1GILD would need 2.59 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.59, 1GILD belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
1GILD has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
1GILD has a Debt to Equity ratio of 1.29. This is comparable to the rest of the industry: 1GILD outperforms 40.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.83
WACC9.52%
2.3 Liquidity
1GILD has a Current Ratio of 1.60. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.60, 1GILD is in line with its industry, outperforming 42.25% of the companies in the same industry.
1GILD has a Quick Ratio of 1.45. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
1GILD's Quick ratio of 1.45 is on the low side compared to the rest of the industry. 1GILD is outperformed by 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
1GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.93%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.01% on average over the past years.
Looking at the last year, 1GILD shows a small growth in Revenue. The Revenue has grown by 6.04% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
3.2 Future
Based on estimates for the next years, 1GILD will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.07% on average per year.
1GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
EPS Next Y75.86%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
EPS Next 5Y17.07%
Revenue Next Year1.43%
Revenue Next 2Y2.68%
Revenue Next 3Y3.32%
Revenue Next 5Y3.46%
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
With a Price/Earnings ratio of 12.78, 1GILD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1GILD indicates a rather cheap valuation: 1GILD is cheaper than 88.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 23.99, 1GILD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.55, the valuation of 1GILD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1GILD is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.35. 1GILD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
1GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1GILD is cheaper than 87.32% of the companies in the same industry.
91.55% of the companies in the same industry are more expensive than 1GILD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
1GILD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1GILD may justify a higher PE ratio.
A more expensive valuation may be justified as 1GILD's earnings are expected to grow with 25.40% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y36.32%
EPS Next 3Y25.4%
5. Dividend
5.1 Amount
1GILD has a Yearly Dividend Yield of 3.06%.
1GILD's Dividend Yield is rather good when compared to the industry average which is at 9.28. 1GILD pays more dividend than 91.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 1GILD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of 1GILD has a limited annual growth rate of 4.45%.
Dividend Growth(5Y)4.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1GILD pays out 816.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1GILD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP816.25%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
BIT:1GILD (5/7/2025, 7:00:00 PM)
87.06
-6.4 (-6.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap108.39B
Analysts80
Price Target100.03 (14.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.77
Dividend Growth(5Y)4.45%
DP816.25%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.42%
Min EPS beat(2)9.39%
Max EPS beat(2)27.44%
EPS beat(4)4
Avg EPS beat(4)18.34%
Min EPS beat(4)9.39%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)9.1%
EPS beat(12)9
Avg EPS beat(12)10.84%
EPS beat(16)11
Avg EPS beat(16)7.78%
Revenue beat(2)2
Avg Revenue beat(2)4.74%
Min Revenue beat(2)3.87%
Max Revenue beat(2)5.61%
Revenue beat(4)4
Avg Revenue beat(4)3.59%
Min Revenue beat(4)1.47%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.62%
Revenue beat(12)10
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)3.68%
PT rev (1m)-3.99%
PT rev (3m)4.36%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.64%
EPS NY rev (1m)0.31%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.55 | ||
| P/S | 4.28 | ||
| P/FCF | 11.95 | ||
| P/OCF | 11.37 | ||
| P/B | 6.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.28 |
EPS(TTM)6.81
EY7.82%
EPS(NY)7.54
Fwd EY8.66%
FCF(TTM)7.29
FCFY8.37%
OCF(TTM)7.66
OCFY8.79%
SpS20.33
BVpS13.67
TBVpS-6.32
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.48% | ||
| ROCE | 23.07% | ||
| ROIC | 17.45% | ||
| ROICexc | 22.16% | ||
| ROICexgc | 93.82% | ||
| OM | 37.7% | ||
| PM (TTM) | 1.67% | ||
| GM | 78.26% | ||
| FCFM | 35.84% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
ROICexc(3y)18.96%
ROICexc(5y)15.63%
ROICexgc(3y)99.97%
ROICexgc(5y)86.01%
ROCE(3y)20.58%
ROCE(5y)17.3%
ROICexcg growth 3Y0.13%
ROICexcg growth 5Y21.72%
ROICexc growth 3Y13.71%
ROICexc growth 5Y12.55%
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 18.9% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 11.4 | ||
| Cash Conversion | 79.57% | ||
| Profit Quality | 2146.88% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.38 |
F-Score7
WACC9.52%
ROIC/WACC1.83
Cap/Depr(3y)25.08%
Cap/Depr(5y)29.48%
Cap/Sales(3y)2.21%
Cap/Sales(5y)2.28%
Profit Quality(3y)819.86%
Profit Quality(5y)1749.07%
High Growth Momentum
Growth
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
EPS Next Y75.86%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
EPS Next 5Y17.07%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.43%
Revenue Next 2Y2.68%
Revenue Next 3Y3.32%
Revenue Next 5Y3.46%
EBIT growth 1Y9.93%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year78.52%
EBIT Next 3Y25.19%
EBIT Next 5Y17.4%
FCF growth 1Y38.86%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y35.25%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%