GILEAD SCIENCES INC (GILD)

US3755581036 - Common Stock

72.41  -0.15 (-0.21%)

After market: 72.41 0 (0%)

Fundamental Rating

6

Taking everything into account, GILD scores 6 out of 10 in our fundamental rating. GILD was compared to 577 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD has a bad growth rate and is valued cheaply.



8

1. Profitability

1.1 Basic Checks

In the past year GILD was profitable.
In the past year GILD had a positive cash flow from operations.
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 (0.86%) than 93.55% of its industry peers.
Looking at the Return On Equity, with a value of 2.76%, GILD belongs to the top of the industry, outperforming 94.77% of the companies in the same industry.
The Return On Invested Capital of GILD (17.16%) is better than 97.74% 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 14.68%.
The last Return On Invested Capital (17.16%) for GILD is above the 3 year average (14.77%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.86%
ROE 2.76%
ROIC 17.16%
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)14.77%
ROIC(5y)11.39%

1.3 Margins

GILD's Profit Margin of 1.76% is amongst the best of the industry. GILD outperforms 94.08% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
GILD's Operating Margin of 33.73% is amongst the best of the industry. GILD outperforms 99.13% of its industry peers.
In the last couple of years the Operating Margin of GILD has declined.
GILD has a better Gross Margin (77.52%) than 85.89% 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 33.73%
PM (TTM) 1.76%
GM 77.52%
OM growth 3Y27.82%
OM growth 5Y-1.87%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GILD is still creating some value.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
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 2.72 indicates that GILD is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, GILD is in the better half of the industry, outperforming 73.87% of the companies in the same industry.
The Debt to FCF ratio of GILD is 3.19, which is a good value as it means it would take GILD, 3.19 years of fcf income to pay off all of its debts.
GILD has a better Debt to FCF ratio (3.19) than 96.17% of its industry peers.
GILD has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GILD (1.23) is worse than 78.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 3.19
Altman-Z 2.72
ROIC/WACC1.7
WACC10.09%

2.3 Liquidity

A Current Ratio of 1.08 indicates that GILD should not have too much problems paying its short term obligations.
GILD's Current ratio of 1.08 is on the low side compared to the rest of the industry. GILD is outperformed by 88.15% of its industry peers.
GILD has a Quick Ratio of 1.08. This is a bad value and indicates that GILD is not financially healthy enough and could expect problems in meeting its short term obligations.
GILD has a worse Quick ratio (0.94) than 88.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.94

3

3. Growth

3.1 Past

The earnings per share for GILD have decreased strongly by -33.28% in the last year.
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.
Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 1.51% in the last 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)-33.28%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-196.35%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%5.26%

3.2 Future

Based on estimates for the next years, GILD will show a small growth in Earnings Per Share. The EPS will grow by 3.70% on average per year.
Based on estimates for the next years, GILD will show a small growth in Revenue. The Revenue will grow by 2.35% on average per year.
EPS Next Y-45.6%
EPS Next 2Y1.84%
EPS Next 3Y3.22%
EPS Next 5Y3.7%
Revenue Next Year1.82%
Revenue Next 2Y1.54%
Revenue Next 3Y2.01%
Revenue Next 5Y2.35%

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.

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.65, GILD is valued correctly.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 97.74% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.08. GILD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.92, 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 98.08% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.74. GILD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.65
Fwd PE 9.92

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 98.08% of the companies are valued more expensively.
99.30% of the companies in the same industry are more expensive than GILD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.42
EV/EBITDA 9.24

4.3 Compensation for Growth

The excellent profitability rating of GILD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.33
EPS Next 2Y1.84%
EPS Next 3Y3.22%

6

5. Dividend

5.1 Amount

GILD has a Yearly Dividend Yield of 4.19%, which is a nice return.
GILD's Dividend Yield is rather good when compared to the industry average which is at 25.49. GILD pays more dividend than 98.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, GILD pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.19%

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.
As GILD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.9%
Div Incr Years8
Div Non Decr Years8

5.3 Sustainability

791.32% 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.
DP791.32%
EPS Next 2Y1.84%
EPS Next 3Y3.22%

GILEAD SCIENCES INC

NASDAQ:GILD (7/22/2024, 7:25:56 PM)

After market: 72.41 0 (0%)

72.41

-0.15 (-0.21%)

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 Cap90.21B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.19%
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 RankSector Rank
PE 16.65
Fwd PE 9.92
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)15.33
Profitability
Industry RankSector Rank
ROA 0.86%
ROE 2.76%
ROCE
ROIC
ROICexc
ROICexgc
OM 33.73%
PM (TTM) 1.76%
GM 77.52%
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 Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.08
Quick Ratio 0.94
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)-33.28%
EPS 3Y-0.24%
EPS 5Y
EPS Q2Q%
EPS Next Y-45.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.51%
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