GILEAD SCIENCES INC (1GILD.MI) Stock Fundamental Analysis
BIT:1GILD - Euronext Milan - US3755581036 - Common Stock - Currency: EUR
1GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 industry peers in the Biotechnology industry. 1GILD has an excellent profitability rating, but there are some minor concerns on its financial health. 1GILD may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, 1GILD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
1GILD had positive earnings in the past year.
1GILD had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 10.57%, 1GILD belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
1GILD's Return On Equity of 31.13% is amongst the best of the industry. 1GILD outperforms 93.15% of its industry peers.
1GILD's Return On Invested Capital of 18.81% is amongst the best of the industry. 1GILD outperforms 95.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1GILD is above the industry average of 11.99%.
The 3 year average ROIC (15.57%) for 1GILD is below the current ROIC(18.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROIC | 18.81% |
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
Looking at the Profit Margin, with a value of 20.76%, 1GILD belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
In the last couple of years the Profit Margin of 1GILD has declined.
Looking at the Operating Margin, with a value of 38.17%, 1GILD belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
1GILD's Operating Margin has improved in the last couple of years.
1GILD has a better Gross Margin (78.29%) than 72.60% of its industry peers.
1GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% |
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
1GILD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1GILD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1GILD has less shares outstanding
The debt/assets ratio for 1GILD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.66 indicates that 1GILD is not in any danger for bankruptcy at the moment.
1GILD has a Altman-Z score of 3.66. This is in the better half of the industry: 1GILD outperforms 76.71% of its industry peers.
1GILD has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as 1GILD would need 2.53 years to pay back of all of its debts.
1GILD's Debt to FCF ratio of 2.53 is amongst the best of the industry. 1GILD outperforms 89.04% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that 1GILD has dependencies on debt financing.
1GILD has a Debt to Equity ratio (1.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.66 |
ROIC/WACC2.2
WACC8.56%
2.3 Liquidity
1GILD has a Current Ratio of 1.37. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.37, 1GILD is not doing good in the industry: 65.75% of the companies in the same industry are doing better.
A Quick Ratio of 1.23 indicates that 1GILD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.23, 1GILD is doing worse than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.93% over the past year.
1GILD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
1GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
1GILD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
Revenue 1Y (TTM)4.68%
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 18.00% on average per year.
Based on estimates for the next years, 1GILD will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y76.16%
EPS Next 2Y37.11%
EPS Next 3Y26.29%
EPS Next 5Y18%
Revenue Next Year1.45%
Revenue Next 2Y2.6%
Revenue Next 3Y3.45%
Revenue Next 5Y3.58%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.84 indicates a correct valuation of 1GILD.
Compared to the rest of the industry, the Price/Earnings ratio of 1GILD indicates a rather cheap valuation: 1GILD is cheaper than 90.41% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1GILD to the average of the S&P500 Index (26.82), we can say 1GILD is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.36, 1GILD is valued correctly.
Based on the Price/Forward Earnings ratio, 1GILD is valued cheaper than 95.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. 1GILD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1GILD indicates a rather cheap valuation: 1GILD is cheaper than 86.30% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1GILD is valued cheaply inside the industry as 91.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 10.94 |
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 excellent profitability rating of 1GILD may justify a higher PE ratio.
1GILD's earnings are expected to grow with 26.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y37.11%
EPS Next 3Y26.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, 1GILD has a reasonable but not impressive dividend return.
1GILD's Dividend Yield is rather good when compared to the industry average which is at 12.16. 1GILD pays more dividend than 91.78% of the companies in the same industry.
1GILD's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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 66.02% 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.
DP66.02%
EPS Next 2Y37.11%
EPS Next 3Y26.29%
BIT:1GILD (7/22/2025, 7:00:00 PM)
93.94
-0.78 (-0.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap116.85B
Analysts80
Price Target104.63 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend2.76
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.4%
Min EPS beat(2)-0.59%
Max EPS beat(2)9.39%
EPS beat(4)3
Avg EPS beat(4)14.86%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)10.6%
EPS beat(12)8
Avg EPS beat(12)9.55%
EPS beat(16)11
Avg EPS beat(16)7.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)1.75%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)9
Avg Revenue beat(12)2.97%
Revenue beat(16)13
Avg Revenue beat(16)3.85%
PT rev (1m)0.62%
PT rev (3m)4.6%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 12.36 | ||
| P/S | 4.64 | ||
| P/FCF | 13.54 | ||
| P/OCF | 12.86 | ||
| P/B | 6.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)6.79
EY7.23%
EPS(NY)7.6
Fwd EY8.09%
FCF(TTM)6.94
FCFY7.39%
OCF(TTM)7.31
OCFY7.78%
SpS20.26
BVpS13.51
TBVpS-6
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROCE | 24.88% | ||
| ROIC | 18.81% | ||
| ROICexc | 22.94% | ||
| ROICexgc | 97.64% | ||
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% | ||
| FCFM | 34.26% |
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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.82% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 165.03% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.66 |
F-Score8
WACC8.56%
ROIC/WACC2.2
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 Y76.16%
EPS Next 2Y37.11%
EPS Next 3Y26.29%
EPS Next 5Y18%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.45%
Revenue Next 2Y2.6%
Revenue Next 3Y3.45%
Revenue Next 5Y3.58%
EBIT growth 1Y8.48%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year72.29%
EBIT Next 3Y24.91%
EBIT Next 5Y17.27%
FCF growth 1Y17.4%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.5%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%