GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
NASDAQ:GILD - Nasdaq - US3755581036 - Common Stock - Currency: USD
Taking everything into account, GILD scores 6 out of 10 in our fundamental rating. GILD was compared to 562 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, GILD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year GILD was profitable.
GILD had a positive operating cash flow in the past year.
GILD had positive earnings in each of the past 5 years.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
GILD has a better Return On Assets (10.57%) than 95.04% of its industry peers.
GILD's Return On Equity of 31.13% is amongst the best of the industry. GILD outperforms 98.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.81%, GILD belongs to the top of the industry, outperforming 97.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 14.69%.
The 3 year average ROIC (15.57%) for GILD 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%, GILD belongs to the top of the industry, outperforming 96.10% of the companies in the same industry.
GILD's Profit Margin has declined in the last couple of years.
GILD has a Operating Margin of 38.17%. This is amongst the best in the industry. GILD outperforms 99.11% of its industry peers.
In the last couple of years the Operating Margin of GILD has grown nicely.
The Gross Margin of GILD (78.29%) is better than 83.87% of its industry peers.
In the last couple of years the Gross Margin of GILD has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GILD is creating value.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
The number of shares outstanding for GILD has been reduced compared to 5 years ago.
Compared to 1 year ago, GILD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.46 indicates that GILD is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.46, GILD is doing good in the industry, outperforming 78.19% of the companies in the same industry.
GILD has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as GILD would need 2.53 years to pay back of all of its debts.
GILD has a Debt to FCF ratio of 2.53. This is amongst the best in the industry. GILD outperforms 94.33% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that GILD has dependencies on debt financing.
The Debt to Equity ratio of GILD (1.16) is worse than 79.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.98
WACC9.5%
2.3 Liquidity
GILD has a Current Ratio of 1.37. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GILD (1.37) is worse than 84.57% of its industry peers.
A Quick Ratio of 1.23 indicates that GILD should not have too much problems paying its short term obligations.
GILD has a worse Quick ratio (1.23) than 84.57% of its industry peers.
| 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.
GILD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
The Revenue has been growing slightly by 4.68% in the past 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)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
3.2 Future
Based on estimates for the next years, GILD will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.07% on average per year.
Based on estimates for the next years, GILD will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
EPS Next Y75.86%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
EPS Next 5Y17.07%
Revenue Next Year1.08%
Revenue Next 2Y2.38%
Revenue Next 3Y3.27%
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.
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
With a Price/Earnings ratio of 12.52, GILD is valued correctly.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 96.45% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.21. GILD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.31, the valuation of GILD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, GILD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 11.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 96.99% 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 96.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GILD 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.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y36.32%
EPS Next 3Y25.4%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
GILD's Dividend Yield is rather good when compared to the industry average which is at 93.50. GILD pays more dividend than 98.58% of the companies in the same industry.
GILD's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
The dividend of GILD has a limited annual growth rate of 4.45%.
GILD has been paying a dividend for at least 10 years, so it has a reliable track record.
As GILD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.45%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
GILD pays out 66.02% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GILD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.02%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
96.91
-1.25 (-1.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner Change-0.56%
Ins Owners0.07%
Ins Owner Change3.17%
Market Cap120.65B
Analysts80
Price Target117.28 (21.02%)
Short Float %1.61%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.08%
Min EPS beat(2)0.77%
Max EPS beat(2)9.39%
EPS beat(4)4
Avg EPS beat(4)15.2%
Min EPS beat(4)0.77%
Max EPS beat(4)27.44%
EPS beat(8)6
Avg EPS beat(8)10.77%
EPS beat(12)9
Avg EPS beat(12)9.66%
EPS beat(16)12
Avg EPS beat(16)7.98%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-3.45%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.39%
Revenue beat(12)9
Avg Revenue beat(12)3.01%
Revenue beat(16)13
Avg Revenue beat(16)3.88%
PT rev (1m)3.97%
PT rev (3m)15.1%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 11.31 | ||
| P/S | 4.2 | ||
| P/FCF | 12.26 | ||
| P/OCF | 11.64 | ||
| P/B | 6.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.02 |
EPS(TTM)7.74
EY7.99%
EPS(NY)8.57
Fwd EY8.84%
FCF(TTM)7.91
FCFY8.16%
OCF(TTM)8.33
OCFY8.59%
SpS23.08
BVpS15.39
TBVpS-6.83
PEG (NY)0.17
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 | 3.46 |
F-Score8
WACC9.5%
ROIC/WACC1.98
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)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.08%
Revenue Next 2Y2.38%
Revenue Next 3Y3.27%
Revenue Next 5Y3.46%
EBIT growth 1Y8.48%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year78.52%
EBIT Next 3Y25.19%
EBIT Next 5Y17.4%
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%