GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - FRA:GIS - US3755581036 - Common Stock
103.2 EUR
-0.4 (-0.39%)
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on GIS. These ratings could make GIS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
In the past year GIS had a positive cash flow from operations.
Each year in the past 5 years GIS has been profitable.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIS has a Return On Assets of 11.33%. This is amongst the best in the industry. GIS outperforms 86.30% of its industry peers.
GIS has a Return On Equity of 32.08%. This is amongst the best in the industry. GIS outperforms 94.52% of its industry peers.
With an excellent Return On Invested Capital value of 18.69%, GIS belongs to the best of the industry, outperforming 93.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIS is in line with the industry average of 14.02%.
The last Return On Invested Capital (18.69%) for GIS 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
GIS has a better Profit Margin (21.87%) than 87.67% of its industry peers.
GIS's Profit Margin has declined in the last couple of years.
GIS's Operating Margin of 38.12% is amongst the best of the industry. GIS outperforms 93.15% of its industry peers.
In the last couple of years the Operating Margin of GIS has grown nicely.
GIS has a Gross Margin of 78.53%. This is in the better half of the industry: GIS outperforms 71.23% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GIS is creating value.
Compared to 1 year ago, GIS has about the same amount of shares outstanding.
Compared to 5 years ago, GIS has less shares outstanding
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
GIS has an Altman-Z score of 4.00. This indicates that GIS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.00, GIS is in the better half of the industry, outperforming 78.08% of the companies in the same industry.
The Debt to FCF ratio of GIS is 2.66, which is a good value as it means it would take GIS, 2.66 years of fcf income to pay off all of its debts.
GIS has a better Debt to FCF ratio (2.66) than 84.93% of its industry peers.
GIS has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GIS (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4 |
ROIC/WACC2.34
WACC8%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GIS should not have too much problems paying its short term obligations.
GIS's Current ratio of 1.32 is on the low side compared to the rest of the industry. GIS is outperformed by 64.38% of its industry peers.
GIS has a Quick Ratio of 1.15. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
GIS has a worse Quick ratio (1.15) than 64.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
GIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.68%, which is quite impressive.
Measured over the past years, GIS shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.01% on average per year.
Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 3.81% in the last year.
GIS 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
The Earnings Per Share is expected to grow by 19.75% on average over the next years. This is quite good.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
EPS Next Y77.74%
EPS Next 2Y37.95%
EPS Next 3Y27.38%
EPS Next 5Y19.75%
Revenue Next Year1.79%
Revenue Next 2Y2.77%
Revenue Next 3Y3.74%
Revenue Next 5Y4.34%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.40, 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 26.10, GIS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.59, GIS is valued correctly.
Based on the Price/Forward Earnings ratio, GIS is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
GIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 84.93% of the companies listed in the same industry.
89.04% of the companies in the same industry are more expensive than GIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.79 | ||
| EV/EBITDA | 12.21 |
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.
The excellent profitability rating of GIS may justify a higher PE ratio.
GIS's earnings are expected to grow with 27.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y37.95%
EPS Next 3Y27.38%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.62%.
GIS's Dividend Yield is rather good when compared to the industry average which is at 10.16. GIS pays more dividend than 93.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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
62.75% of the earnings are spent on dividend by GIS. This is not a sustainable payout ratio.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.75%
EPS Next 2Y37.95%
EPS Next 3Y27.38%
FRA:GIS (10/31/2025, 7:00:00 PM)
103.2
-0.4 (-0.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap128.05B
Revenue(TTM)28.86B
Net Income(TTM)6.31B
Analysts81.11
Price Target108.55 (5.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend2.71
Dividend Growth(5Y)4.45%
DP62.75%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)0.19%
PT rev (3m)5.59%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 13.59 | ||
| P/S | 5.12 | ||
| P/FCF | 15.79 | ||
| P/OCF | 14.99 | ||
| P/B | 7.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.21 |
EPS(TTM)6.7
EY6.49%
EPS(NY)7.6
Fwd EY7.36%
FCF(TTM)6.54
FCFY6.33%
OCF(TTM)6.89
OCFY6.67%
SpS20.14
BVpS13.73
TBVpS-5.03
PEG (NY)0.2
PEG (5Y)N/A
Graham Number45.49
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%
ROICexgc growth 3Y0.13%
ROICexgc 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 | 4 |
F-Score8
WACC8%
ROIC/WACC2.34
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 Y77.74%
EPS Next 2Y37.95%
EPS Next 3Y27.38%
EPS Next 5Y19.75%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.79%
Revenue Next 2Y2.77%
Revenue Next 3Y3.74%
Revenue Next 5Y4.34%
EBIT growth 1Y5.92%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.07%
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%
GILEAD SCIENCES INC / GIS.DE FAQ
What is the fundamental rating for GIS stock?
ChartMill assigns a fundamental rating of 6 / 10 to GIS.DE.
Can you provide the valuation status for GILEAD SCIENCES INC?
ChartMill assigns a valuation rating of 8 / 10 to GILEAD SCIENCES INC (GIS.DE). This can be considered as Undervalued.
How profitable is GILEAD SCIENCES INC (GIS.DE) stock?
GILEAD SCIENCES INC (GIS.DE) has a profitability rating of 8 / 10.
Can you provide the financial health for GIS stock?
The financial health rating of GILEAD SCIENCES INC (GIS.DE) is 5 / 10.
What is the expected EPS growth for GILEAD SCIENCES INC (GIS.DE) stock?
The Earnings per Share (EPS) of GILEAD SCIENCES INC (GIS.DE) is expected to grow by 77.74% in the next year.