GILEAD SCIENCES INC (GILD)
US3755581036 - Common Stock
Taking everything into account, GILD scores 6 out of 10 in our fundamental rating. GILD was compared to 588 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD is valued quite cheap, but it does not seem to be growing. Finally GILD also has an excellent dividend rating. These ratings could make GILD a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
GILD had positive earnings in the past year.
GILD had a positive operating cash flow in the past year.
In the past 5 years GILD has always been profitable.
GILD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.12%, GILD belongs to the best of the industry, outperforming 97.09% of the companies in the same industry.
GILD has a better Return On Equity (24.81%) than 98.12% of its industry peers.
GILD's Return On Invested Capital of 12.07% is amongst the best of the industry. GILD outperforms 97.27% of its industry peers.
GILD had an Average Return On Invested Capital over the past 3 years of 14.17%. This is in line with the industry average of 13.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.12% | ||
| ROE | 24.81% | ||
| ROIC | 12.07% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)14.17%
ROIC(5y)11.02%
1.3 Margins
The Profit Margin of GILD (20.89%) is better than 97.61% of its industry peers.
GILD's Profit Margin has declined in the last couple of years.
The Operating Margin of GILD (28.23%) is better than 98.12% of its industry peers.
GILD's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 76.04%, GILD belongs to the best of the industry, outperforming 85.64% of the companies in the same industry.
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 | 28.23% | ||
| PM (TTM) | 20.89% | ||
| GM | 76.04% |
OM growth 3Y22.31%
OM growth 5Y-4.42%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GILD is creating value.
The number of shares outstanding for GILD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GILD has less shares outstanding
The debt/assets ratio for GILD is higher compared to a year ago.
2.2 Solvency
GILD has an Altman-Z score of 2.56. This is not the best score and indicates that GILD is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.56, GILD is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
The Debt to FCF ratio of GILD is 3.37, which is a good value as it means it would take GILD, 3.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GILD (3.37) is better than 95.38% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that GILD has dependencies on debt financing.
GILD's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. GILD is outperformed by 78.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.56
WACC7.74%
2.3 Liquidity
GILD has a Current Ratio of 1.43. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
GILD has a Current ratio of 1.43. This is amonst the worse of the industry: GILD underperforms 84.79% of its industry peers.
A Quick Ratio of 1.27 indicates that GILD should not have too much problems paying its short term obligations.
GILD's Quick ratio of 1.27 is on the low side compared to the rest of the industry. GILD is outperformed by 84.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
GILD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.16%.
Measured over the past 5 years, GILD shows a small growth in Earnings Per Share. The EPS has been growing by 1.09% on average per year.
The Revenue has decreased by -0.60% in the past year.
Measured over the past years, GILD shows a small growth in Revenue. The Revenue has been growing by 4.15% on average per year.
EPS 1Y (TTM)-3.16%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS growth Q2Q2.99%
Revenue 1Y (TTM)-0.6%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Revenue growth Q2Q-3.72%
3.2 Future
The Earnings Per Share is expected to grow by 4.91% on average over the next years.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y2.9%
EPS Next 2Y3.74%
EPS Next 3Y4.1%
EPS Next 5Y4.91%
Revenue Next Year1.47%
Revenue Next 2Y1.72%
Revenue Next 3Y2.16%
Revenue Next 5Y2.46%
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
A Price/Earnings ratio of 9.40 indicates a reasonable valuation of GILD.
GILD's Price/Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 98.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of GILD to the average of the S&P500 Index (24.80), we can say GILD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.13, the valuation of GILD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, GILD is valued cheaply inside the industry as 99.15% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.27. GILD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 97.78% of the companies are valued more expensively.
GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 98.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.11 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GILD does not grow enough to justify the current Price/Earnings ratio.
GILD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.24
PEG (5Y)8.66
EPS Next 2Y3.74%
EPS Next 3Y4.1%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 4.49%, which is a nice return.
The stock price of GILD dropped by -24.21% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
GILD's Dividend Yield is rather good when compared to the industry average which is at 19.20. GILD pays more dividend than 99.15% of the companies in the same industry.
GILD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
The dividend of GILD has a limited annual growth rate of 5.90%.
GILD has been paying a dividend for at least 10 years, so it has a reliable track record.
GILD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GILD pays out 67.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GILD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.25%
EPS Next 2Y3.74%
EPS Next 3Y4.1%
GILEAD SCIENCES INC
NASDAQ:GILD (4/18/2024, 7:00:02 PM)
After market: 66.22 +0.06 (+0.09%)66.16
-0.77 (-1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap82.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 9.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.24
PEG (5Y)8.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.12% | ||
| ROE | 24.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.23% | ||
| PM (TTM) | 20.89% | ||
| GM | 76.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.16%
EPS 3Y-0.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.6%
Revenue growth 3Y3.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y