GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GIS - US3755581036 - Common Stock
105.26 EUR
-1.54 (-1.44%)
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 81 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 With these ratings, GIS could be worth investigating further 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.
GIS had positive earnings in each of the past 5 years.
Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.86%, GIS belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
GIS has a Return On Equity of 37.80%. This is amongst the best in the industry. GIS outperforms 97.53% of its industry peers.
With an excellent Return On Invested Capital value of 18.54%, GIS belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 16.22%. This is above the industry average of 13.22%.
The 3 year average ROIC (16.22%) for GIS is below the current ROIC(18.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.86% | ||
| ROE | 37.8% | ||
| ROIC | 18.54% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)16.22%
ROIC(5y)15.08%
1.3 Margins
Looking at the Profit Margin, with a value of 27.88%, GIS belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
GIS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 38.96%, GIS belongs to the top of the industry, outperforming 95.06% of the companies in the same industry.
In the last couple of years the Operating Margin of GIS has grown nicely.
GIS has a Gross Margin of 78.72%. This is in the better half of the industry: GIS outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of GIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.96% | ||
| PM (TTM) | 27.88% | ||
| GM | 78.72% |
OM growth 3Y0.61%
OM growth 5Y7.43%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
GIS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GIS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GIS has less shares outstanding
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
GIS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.28
WACC8.12%
2.3 Liquidity
GIS has a Current Ratio of 1.53. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
GIS's Current ratio of 1.53 is on the low side compared to the rest of the industry. GIS is outperformed by 61.73% of its industry peers.
GIS has a Quick Ratio of 1.17. 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 (1.17) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
GIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.88%, 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.
GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)84.88%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%22.28%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
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 19.55% on average per year.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.55%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.01%
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
The Price/Earnings ratio is 14.99, which indicates a correct valuation of GIS.
GIS's Price/Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 87.65% of the companies in the same industry.
GIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
The Price/Forward Earnings ratio is 13.93, which indicates a correct valuation of GIS.
GIS's Price/Forward Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 95.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIS to the average of the S&P500 Index (35.40), we can say GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
86.42% of the companies in the same industry are more expensive than GIS, based on the Enterprise Value to EBITDA ratio.
88.89% 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 | 16.01 | ||
| EV/EBITDA | 10.3 |
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 27.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.31%
EPS Next 3Y27.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.48%, GIS has a reasonable but not impressive dividend return.
GIS's Dividend Yield is rather good when compared to the industry average which is at 10.20. GIS pays more dividend than 95.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 12.00% of its income as dividend. This is a sustainable payout ratio.
The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
FRA:GIS (12/4/2025, 7:00:00 PM)
105.26
-1.54 (-1.44%)
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 Cap130.59B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target114.37 (8.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend2.72
Dividend Growth(5Y)4.45%
DP12%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.14%
Min EPS beat(2)0.6%
Max EPS beat(2)13.68%
EPS beat(4)3
Avg EPS beat(4)5.77%
Min EPS beat(4)-0.59%
Max EPS beat(4)13.68%
EPS beat(8)6
Avg EPS beat(8)10.36%
EPS beat(12)8
Avg EPS beat(12)8%
EPS beat(16)11
Avg EPS beat(16)5.39%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)3.87%
Revenue beat(8)5
Avg Revenue beat(8)1.32%
Revenue beat(12)8
Avg Revenue beat(12)1.67%
Revenue beat(16)12
Avg Revenue beat(16)2.95%
PT rev (1m)5.36%
PT rev (3m)4.33%
EPS NQ rev (1m)-10.12%
EPS NQ rev (3m)-12.51%
EPS NY rev (1m)1.49%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 13.93 | ||
| P/S | 5.24 | ||
| P/FCF | 16.01 | ||
| P/OCF | 15.76 | ||
| P/B | 7.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.3 |
EPS(TTM)7.02
EY6.67%
EPS(NY)7.56
Fwd EY7.18%
FCF(TTM)6.58
FCFY6.25%
OCF(TTM)6.68
OCFY6.34%
SpS20.09
BVpS14.82
TBVpS-3.34
PEG (NY)0.19
PEG (5Y)N/A
Graham Number48.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.86% | ||
| ROE | 37.8% | ||
| ROCE | 24.51% | ||
| ROIC | 18.54% | ||
| ROICexc | 23.24% | ||
| ROICexgc | 80.87% | ||
| OM | 38.96% | ||
| PM (TTM) | 27.88% | ||
| GM | 78.72% | ||
| FCFM | 32.73% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)16.22%
ROIC(5y)15.08%
ROICexc(3y)19.38%
ROICexc(5y)17.72%
ROICexgc(3y)93.83%
ROICexgc(5y)93.24%
ROCE(3y)21.45%
ROCE(5y)19.94%
ROICexgc growth 3Y-0.46%
ROICexgc growth 5Y15.06%
ROICexc growth 3Y13.04%
ROICexc growth 5Y6.39%
OM growth 3Y0.61%
OM growth 5Y7.43%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.95%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.56% | ||
| Profit Quality | 117.39% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score7
WACC8.12%
ROIC/WACC2.28
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)84.88%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%22.28%
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.55%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.01%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.13%
FCF growth 1Y21.23%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.03%
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 80.38% in the next year.