GILEAD SCIENCES INC (GILD)
US3755581036 - Common Stock
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 568 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GILD was profitable.
GILD had a positive operating cash flow in the past year.
Each year in the past 5 years GILD has been profitable.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
GILD has a Return On Assets of 1.97%. This is amongst the best in the industry. GILD outperforms 93.25% of its industry peers.
GILD's Return On Equity of 5.76% is amongst the best of the industry. GILD outperforms 94.85% of its industry peers.
The Return On Invested Capital of GILD (19.29%) is better than 98.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GILD is in line with the industry average of 13.83%.
The 3 year average ROIC (15.05%) for GILD is below the current ROIC(19.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.76% | ||
| ROIC | 19.29% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
1.3 Margins
Looking at the Profit Margin, with a value of 3.79%, GILD belongs to the top of the industry, outperforming 93.96% 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 37.04%. This is amongst the best in the industry. GILD outperforms 98.93% of its industry peers.
GILD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 77.44%, GILD belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.04% | ||
| PM (TTM) | 3.79% | ||
| GM | 77.44% |
OM growth 3Y30.17%
OM growth 5Y-0.79%
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GILD is creating value.
The number of shares outstanding for GILD remains at a similar level compared to 1 year ago.
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 3.31 indicates that GILD is not in any danger for bankruptcy at the moment.
GILD's Altman-Z score of 3.31 is fine compared to the rest of the industry. GILD outperforms 74.78% of its industry peers.
GILD has a debt to FCF ratio of 3.39. This is a good value and a sign of high solvency as GILD would need 3.39 years to pay back of all of its debts.
GILD has a Debt to FCF ratio of 3.39. This is amongst the best in the industry. GILD outperforms 95.38% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that GILD has dependencies on debt financing.
GILD has a worse Debt to Equity ratio (1.18) than 79.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.89
WACC10.21%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GILD should not have too much problems paying its short term obligations.
GILD's Current ratio of 1.14 is on the low side compared to the rest of the industry. GILD is outperformed by 85.61% of its industry peers.
A Quick Ratio of 0.95 indicates that GILD may have some problems paying its short term obligations.
GILD's Quick ratio of 0.95 is on the low side compared to the rest of the industry. GILD is outperformed by 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
GILD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.79%.
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.
GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.54%.
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)-28.79%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%21.08%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%5.38%
3.2 Future
The Earnings Per Share is expected to grow by 3.70% on average over the next years.
The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y-44.53%
EPS Next 2Y2%
EPS Next 3Y3.48%
EPS Next 5Y3.7%
Revenue Next Year2.27%
Revenue Next 2Y1.57%
Revenue Next 3Y2.08%
Revenue Next 5Y2.35%
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
GILD is valuated rather expensively with a Price/Earnings ratio of 18.36.
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 31.71. GILD is valued slightly cheaper when compared to this.
GILD is valuated reasonably with a Price/Forward Earnings ratio of 11.78.
Based on the Price/Forward Earnings ratio, GILD is valued cheaply inside the industry as 97.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, GILD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.36 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GILD is cheaper than 97.87% of the companies in the same industry.
97.87% of the companies in the same industry are more expensive than GILD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
GILD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)16.91
EPS Next 2Y2%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 19.76, GILD pays a better dividend. On top of this GILD pays more dividend than 98.93% of the companies listed in the same industry.
GILD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of GILD has a limited annual growth rate of 5.90%.
GILD has paid a dividend for at least 10 years, which is 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
366.38% of the earnings are spent on dividend by GILD. 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.
DP366.38%
EPS Next 2Y2%
EPS Next 3Y3.48%
GILEAD SCIENCES INC
NASDAQ:GILD (10/21/2024, 5:20:00 PM)
After market: 86.72 +0.43 (+0.5%)86.29
-0.43 (-0.5%)
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 Cap107.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 18.36 | ||
| Fwd PE | 11.78 | ||
| 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)N/A
PEG (5Y)16.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.04% | ||
| PM (TTM) | 3.79% | ||
| GM | 77.44% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.95 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-28.79%
EPS 3Y-0.24%
EPS 5Y
EPS Q2Q%
EPS Next Y-44.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.54%
Revenue growth 3Y3.17%
Revenue growth 5Y
Sales 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