GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
NASDAQ:GILD - US3755581036 - Common Stock
112.7 USD
+0.14 (+0.12%)
Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 547 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on GILD. This makes GILD very considerable 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.
In the past 5 years GILD always reported a positive cash flow from operatings.
1.2 Ratios
GILD has a better Return On Assets (11.33%) than 94.15% of its industry peers.
With an excellent Return On Equity value of 32.08%, GILD belongs to the best of the industry, outperforming 97.81% of the companies in the same industry.
GILD has a better Return On Invested Capital (18.69%) than 97.26% of its industry peers.
GILD had an Average Return On Invested Capital over the past 3 years of 15.57%. This is in line with the industry average of 16.04%.
The last Return On Invested Capital (18.69%) for GILD is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROIC | 18.69% |
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 better Profit Margin (21.87%) than 95.25% of its industry peers.
GILD's Profit Margin has declined in the last couple of years.
GILD has a better Operating Margin (38.12%) than 98.35% of its industry peers.
GILD's Operating Margin has improved in the last couple of years.
GILD has a Gross Margin of 78.53%. This is amongst the best in the industry. GILD outperforms 84.10% 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 | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% |
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
GILD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GILD has about the same amout of shares outstanding than it did 1 year ago.
GILD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GILD has a worse debt to assets ratio.
2.2 Solvency
GILD has an Altman-Z score of 3.85. This indicates that GILD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.85, GILD is doing good in the industry, outperforming 75.32% of the companies in the same industry.
The Debt to FCF ratio of GILD is 2.66, which is a good value as it means it would take GILD, 2.66 years of fcf income to pay off all of its debts.
GILD's Debt to FCF ratio of 2.66 is amongst the best of the industry. GILD outperforms 94.33% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that GILD has dependencies on debt financing.
The Debt to Equity ratio of GILD (1.13) is worse than 76.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 3.85 |
ROIC/WACC2.02
WACC9.26%
2.3 Liquidity
GILD has a Current Ratio of 1.32. 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 1.32. This is amonst the worse of the industry: GILD underperforms 82.27% of its industry peers.
A Quick Ratio of 1.15 indicates that GILD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, GILD is not doing good in the industry: 84.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.68% 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 3.81% 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)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
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 19.60% on average per year.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y79.18%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
EPS Next 5Y19.6%
Revenue Next Year1.55%
Revenue Next 2Y2.78%
Revenue Next 3Y3.69%
Revenue Next 5Y4.17%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GILD is valuated correctly with a Price/Earnings ratio of 14.56.
Compared to the rest of the industry, the Price/Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 95.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.17, GILD is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.85, the valuation of GILD can be described as correct.
Based on the Price/Forward Earnings ratio, GILD is valued cheaply inside the industry as 96.34% 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 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 95.80% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.93 | ||
| EV/EBITDA | 11.57 |
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.
A more expensive valuation may be justified as GILD's earnings are expected to grow with 27.34% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y37.95%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.72%.
GILD's Dividend Yield is rather good when compared to the industry average which is at 96.44. GILD pays more dividend than 98.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GILD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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.
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
5.3 Sustainability
62.75% of the earnings are spent on dividend by GILD. This is not a sustainable payout ratio.
The dividend of GILD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.75%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
NASDAQ:GILD (8/29/2025, 9:44:09 AM)
112.7
+0.14 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.93%
Inst Owner Change-0.99%
Ins Owners0.08%
Ins Owner Change-0.11%
Market Cap139.84B
Analysts80.56
Price Target126.63 (12.36%)
Short Float %1.61%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP62.75%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.01%
Min EPS beat(2)-0.59%
Max EPS beat(2)0.6%
EPS beat(4)3
Avg EPS beat(4)9.21%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)6
Avg EPS beat(8)10.79%
EPS beat(12)8
Avg EPS beat(12)9.42%
EPS beat(16)11
Avg EPS beat(16)7.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-0.31%
Revenue beat(4)2
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)2.54%
Revenue beat(16)12
Avg Revenue beat(16)3.8%
PT rev (1m)5.96%
PT rev (3m)7.97%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 12.85 | ||
| P/S | 4.84 | ||
| P/FCF | 14.93 | ||
| P/OCF | 14.17 | ||
| P/B | 7.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.57 |
EPS(TTM)7.74
EY6.87%
EPS(NY)8.77
Fwd EY7.78%
FCF(TTM)7.55
FCFY6.7%
OCF(TTM)7.95
OCFY7.06%
SpS23.26
BVpS15.86
TBVpS-5.81
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROCE | 24.71% | ||
| ROIC | 18.69% | ||
| ROICexc | 21.16% | ||
| ROICexgc | 66.9% | ||
| OM | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% | ||
| FCFM | 32.46% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.01% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.64% | ||
| Profit Quality | 148.46% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.85 |
F-Score8
WACC9.26%
ROIC/WACC2.02
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)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
EPS Next Y79.18%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
EPS Next 5Y19.6%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.55%
Revenue Next 2Y2.78%
Revenue Next 3Y3.69%
Revenue Next 5Y4.17%
EBIT growth 1Y5.92%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year73.23%
EBIT Next 3Y24.47%
EBIT Next 5Y20.35%
FCF growth 1Y4.96%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y3.74%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%