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GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis

NASDAQ:GILD - Nasdaq - US3755581036 - Common Stock - Currency: USD

106.54  +2.33 (+2.24%)

After market: 105.64 -0.9 (-0.84%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to GILD. GILD was compared to 566 industry peers in the Biotechnology industry. While GILD belongs to the best of the industry regarding profitability, 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!.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

GILD had positive earnings in the past year.
In the past year GILD had a positive cash flow from operations.
Each year in the past 5 years GILD has been profitable.
In the past 5 years GILD always reported a positive cash flow from operatings.
GILD Yearly Net Income VS EBIT VS OCF VS FCFGILD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

1.2 Ratios

GILD's Return On Assets of 0.81% is amongst the best of the industry. GILD outperforms 91.34% of its industry peers.
GILD's Return On Equity of 2.48% is amongst the best of the industry. GILD outperforms 92.40% of its industry peers.
GILD's Return On Invested Capital of 17.45% is amongst the best of the industry. GILD outperforms 97.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 14.24%.
The 3 year average ROIC (15.57%) for GILD is below the current ROIC(17.45%), indicating increased profibility in the last year.
Industry RankSector 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%
GILD Yearly ROA, ROE, ROICGILD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

The Profit Margin of GILD (1.67%) is better than 91.87% of its industry peers.
GILD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 37.70%, GILD belongs to the best of the industry, outperforming 99.12% of the companies in the same industry.
GILD's Operating Margin has improved in the last couple of years.
GILD has a better Gross Margin (78.26%) than 83.92% 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 RankSector 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%
GILD Yearly Profit, Operating, Gross MarginsGILD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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5

2. Health

2.1 Basic Checks

GILD 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 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.
The debt/assets ratio for GILD is higher compared to a year ago.
GILD Yearly Shares OutstandingGILD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
GILD Yearly Total Debt VS Total AssetsGILD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

An Altman-Z score of 3.48 indicates that GILD is not in any danger for bankruptcy at the moment.
GILD's Altman-Z score of 3.48 is fine compared to the rest of the industry. GILD outperforms 77.21% of its industry peers.
GILD has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as GILD would need 2.59 years to pay back of all of its debts.
The Debt to FCF ratio of GILD (2.59) is better than 94.17% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GILD has dependencies on debt financing.
GILD has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: GILD underperforms 79.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.29
Debt/FCF 2.59
Altman-Z 3.48
ROIC/WACC1.85
WACC9.45%
GILD Yearly LT Debt VS Equity VS FCFGILD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

GILD has a Current Ratio of 1.60. 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 1.60. This is amonst the worse of the industry: GILD underperforms 80.92% of its industry peers.
A Quick Ratio of 1.45 indicates that GILD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, GILD is doing worse than 82.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 1.45
GILD Yearly Current Assets VS Current LiabilitesGILD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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4

3. Growth

3.1 Past

GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.93%, which is quite impressive.
Measured over the past years, GILD shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.01% on average per year.
The Revenue has been growing slightly by 6.04% 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)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%

3.2 Future

GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.07% yearly.
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 Year1.43%
Revenue Next 2Y2.68%
Revenue Next 3Y3.32%
Revenue Next 5Y3.46%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GILD Yearly Revenue VS EstimatesGILD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
GILD Yearly EPS VS EstimatesGILD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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8

4. Valuation

4.1 Price/Earnings Ratio

GILD is valuated correctly with a Price/Earnings ratio of 13.76.
97.00% of the companies in the same industry are more expensive than GILD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GILD to the average of the S&P500 Index (28.88), we can say GILD is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.44, GILD is valued correctly.
Based on the Price/Forward Earnings ratio, GILD is valued cheaply inside the industry as 96.29% of the companies are valued more expensively.
GILD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.20.
Industry RankSector Rank
PE 13.76
Fwd PE 12.44
GILD Price Earnings VS Forward Price EarningsGILD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 97.17% of the companies in the same industry.
GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 97.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.89
EV/EBITDA 10.78
GILD Per share dataGILD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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.
GILD has an outstanding profitability rating, which 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)0.18
PEG (5Y)N/A
EPS Next 2Y36.32%
EPS Next 3Y25.4%

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6

5. Dividend

5.1 Amount

GILD has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 52.29, GILD pays a better dividend. On top of this GILD pays more dividend than 98.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, GILD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.97%

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.
GILD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.45%
Div Incr Years9
Div Non Decr Years9
GILD Yearly Dividends per shareGILD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

GILD pays out 816.25% of its income as dividend. This is not a sustainable payout ratio.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP816.25%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
GILD Yearly Income VS Free CF VS DividendGILD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B
GILD Dividend Payout.GILD Dividend Payout, showing the Payout Ratio.GILD Dividend Payout.PayoutRetained Earnings

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GILEAD SCIENCES INC

NASDAQ:GILD (4/30/2025, 8:09:56 PM)

After market: 105.64 -0.9 (-0.84%)

106.54

+2.33 (+2.24%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners89.69%
Inst Owner Change0.14%
Ins Owners0.07%
Ins Owner Change2.97%
Market Cap132.82B
Analysts79.44
Price Target114.52 (7.49%)
Short Float %1.61%
Short Ratio2.02
Dividend
Industry RankSector Rank
Dividend Yield 2.97%
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP816.25%
Div Incr Years9
Div Non Decr Years9
Ex-Date03-14 2025-03-14 (0.79)
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)4.29%
PT rev (3m)13.61%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.64%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.09%
Valuation
Industry RankSector Rank
PE 13.76
Fwd PE 12.44
P/S 4.62
P/FCF 12.89
P/OCF 12.27
P/B 6.87
P/tB N/A
EV/EBITDA 10.78
EPS(TTM)7.74
EY7.26%
EPS(NY)8.57
Fwd EY8.04%
FCF(TTM)8.27
FCFY7.76%
OCF(TTM)8.69
OCFY8.15%
SpS23.07
BVpS15.51
TBVpS-7.16
PEG (NY)0.18
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 3.48
F-Score7
WACC9.45%
ROIC/WACC1.85
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%