GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
NASDAQ:GILD - Nasdaq - US3755581036 - Common Stock - Currency: USD
Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 561 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, while showing a decent growth score. This is a good combination! With these ratings, GILD could be worth investigating further for value investing!.
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.
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 94.65% of its industry peers.
GILD has a Return On Equity of 31.13%. This is amongst the best in the industry. GILD outperforms 98.22% of its industry peers.
GILD has a better Return On Invested Capital (18.81%) than 97.33% 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 15.87%.
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
GILD has a Profit Margin of 20.76%. This is amongst the best in the industry. GILD outperforms 95.72% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
The Operating Margin of GILD (38.17%) is better than 98.93% of its industry peers.
In the last couple of years the Operating Margin of GILD has grown nicely.
GILD's Gross Margin of 78.29% is amongst the best of the industry. GILD outperforms 83.78% 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.
The number of shares outstanding for GILD remains at a similar level compared to 1 year ago.
GILD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GILD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.71 indicates that GILD is not in any danger for bankruptcy at the moment.
GILD has a better Altman-Z score (3.71) than 77.54% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.53, GILD belongs to the top of the industry, outperforming 94.47% of the companies in the same industry.
GILD has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GILD (1.16) is worse than 79.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.71 |
ROIC/WACC2
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.37 indicates that GILD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, GILD is doing worse than 83.78% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that GILD should not have too much problems paying its short term obligations.
The Quick ratio of GILD (1.23) is worse than 84.67% 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.
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.
Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
GILD 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
The Earnings Per Share is expected to grow by 17.07% on average over the next years. This is quite good.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.46% yearly.
EPS Next Y76.07%
EPS Next 2Y36.66%
EPS Next 3Y25.82%
EPS Next 5Y17.07%
Revenue Next Year1.08%
Revenue Next 2Y2.38%
Revenue Next 3Y3.27%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.99, which indicates a correct valuation of GILD.
95.72% of the companies in the same industry are more expensive than GILD, based on the Price/Earnings ratio.
GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
GILD is valuated correctly with a Price/Forward Earnings ratio of 12.58.
95.19% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. GILD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.58 |
4.2 Price Multiples
GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GILD is cheaper than 96.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GILD is valued cheaper than 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.69 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
GILD'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 GILD may justify a higher PE ratio.
GILD's earnings are expected to grow with 25.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y36.66%
EPS Next 3Y25.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, GILD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 108.78, GILD pays a better dividend. On top of this GILD pays more dividend than 98.75% of the companies listed in the same industry.
GILD's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of GILD has a limited annual growth rate of 4.45%.
GILD has paid a dividend for at least 10 years, which is 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.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.02%
EPS Next 2Y36.66%
EPS Next 3Y25.82%
NASDAQ:GILD (5/21/2025, 1:20:10 PM)
108.26
-0.85 (-0.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner Change-0.26%
Ins Owners0.07%
Ins Owner Change3.14%
Market Cap134.78B
Analysts80
Price Target117.28 (8.33%)
Short Float %1.9%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)3.97%
PT rev (3m)15.1%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.58 | ||
| P/S | 4.69 | ||
| P/FCF | 13.69 | ||
| P/OCF | 13 | ||
| P/B | 7.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.12 |
EPS(TTM)7.74
EY7.15%
EPS(NY)8.61
Fwd EY7.95%
FCF(TTM)7.91
FCFY7.3%
OCF(TTM)8.33
OCFY7.69%
SpS23.08
BVpS15.39
TBVpS-6.83
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 | 3.71 |
F-Score8
WACC9.42%
ROIC/WACC2
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 Y76.07%
EPS Next 2Y36.66%
EPS Next 3Y25.82%
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%