GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - Deutsche Boerse Ag - US3755581036 - Common Stock - Currency: EUR
Overall GIS gets a fundamental rating of 6 out of 10. We evaluated GIS against 73 industry peers in the Biotechnology industry. GIS scores excellent on profitability, but there are some minor concerns on its financial health. GIS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make GIS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
GIS had a positive operating cash flow in the past year.
GIS had positive earnings in each of the past 5 years.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIS has a better Return On Assets (10.57%) than 90.41% of its industry peers.
Looking at the Return On Equity, with a value of 31.13%, GIS belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.81%, GIS belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 15.57%. This is above the industry average of 11.99%.
The last Return On Invested Capital (18.81%) for GIS is above the 3 year average (15.57%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 20.76%, GIS belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
GIS's Profit Margin has declined in the last couple of years.
GIS's Operating Margin of 38.17% is amongst the best of the industry. GIS outperforms 95.89% of its industry peers.
GIS's Operating Margin has improved in the last couple of years.
GIS has a better Gross Margin (78.29%) than 72.60% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| 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 just above the Cost of Capital (WACC), so GIS is still creating some value.
Compared to 1 year ago, GIS has about the same amount of shares outstanding.
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.70 indicates that GIS is not in any danger for bankruptcy at the moment.
GIS has a Altman-Z score of 3.70. This is in the better half of the industry: GIS outperforms 78.08% of its industry peers.
GIS has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as GIS would need 2.53 years to pay back of all of its debts.
GIS's Debt to FCF ratio of 2.53 is amongst the best of the industry. GIS outperforms 89.04% of its industry peers.
GIS has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, GIS is not doing good in the industry: 60.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.77
WACC10.6%
2.3 Liquidity
GIS has a Current Ratio of 1.37. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, GIS is doing worse than 68.49% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that GIS should not have too much problems paying its short term obligations.
GIS's Quick ratio of 1.23 is on the low side compared to the rest of the industry. GIS is outperformed by 65.75% 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.
The Earnings Per Share has been decreasing by -7.01% on average over the past years.
The Revenue has been growing slightly by 4.68% in the past year.
Measured over the past years, GIS shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
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
Based on estimates for the next years, GIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.00% on average per year.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y76.16%
EPS Next 2Y37.11%
EPS Next 3Y26.29%
EPS Next 5Y18%
Revenue Next Year1.45%
Revenue Next 2Y2.6%
Revenue Next 3Y3.45%
Revenue Next 5Y3.58%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.46, the valuation of GIS can be described as correct.
GIS's Price/Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 87.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, GIS is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.81 indicates a correct valuation of GIS.
94.52% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaply inside the industry as 83.56% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaper than 90.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
GIS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GIS's earnings are expected to grow with 26.29% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y37.11%
EPS Next 3Y26.29%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 12.16, GIS pays a better dividend. On top of this GIS pays more dividend than 94.52% of the companies listed in the same industry.
GIS's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.45%.
Dividend Growth(5Y)4.45%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
GIS pays out 66.02% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.02%
EPS Next 2Y37.11%
EPS Next 3Y26.29%
FRA:GIS (8/8/2025, 7:00:00 PM)
102.8
+9.19 (+9.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap127.88B
Analysts80
Price Target102.8 (0%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend2.76
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-0.75%
PT rev (3m)2.64%
EPS NQ rev (1m)1.06%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 13.81 | ||
| P/S | 5.18 | ||
| P/FCF | 15.12 | ||
| P/OCF | 14.36 | ||
| P/B | 7.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)6.65
EY6.47%
EPS(NY)7.44
Fwd EY7.24%
FCF(TTM)6.8
FCFY6.61%
OCF(TTM)7.16
OCFY6.96%
SpS19.84
BVpS13.23
TBVpS-5.87
PEG (NY)0.2
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 | 3.7 |
F-Score8
WACC10.6%
ROIC/WACC1.77
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 Y76.16%
EPS Next 2Y37.11%
EPS Next 3Y26.29%
EPS Next 5Y18%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.45%
Revenue Next 2Y2.6%
Revenue Next 3Y3.45%
Revenue Next 5Y3.58%
EBIT growth 1Y8.48%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year72.29%
EBIT Next 3Y24.91%
EBIT Next 5Y17.27%
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%