GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - Deutsche Boerse Ag - US3755581036 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to GIS. GIS was compared to 71 industry peers in the Biotechnology industry. GIS has an excellent profitability rating, 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
GIS had positive earnings in the past year.
GIS had a positive operating cash flow in the past year.
Each year in the past 5 years GIS has been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS's Return On Assets of 0.81% is fine compared to the rest of the industry. GIS outperforms 71.83% of its industry peers.
The Return On Equity of GIS (2.48%) is better than 76.06% of its industry peers.
GIS has a Return On Invested Capital of 17.45%. This is amongst the best in the industry. GIS outperforms 94.37% of its industry peers.
GIS had an Average Return On Invested Capital over the past 3 years of 15.57%. This is in line with the industry average of 13.59%.
The last Return On Invested Capital (17.45%) for GIS is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.48% | ||
| ROIC | 17.45% |
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's Profit Margin of 1.67% is fine compared to the rest of the industry. GIS outperforms 74.65% of its industry peers.
GIS's Profit Margin has declined in the last couple of years.
GIS has a better Operating Margin (37.70%) than 94.37% of its industry peers.
In the last couple of years the Operating Margin of GIS has grown nicely.
GIS has a better Gross Margin (78.26%) than 77.46% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.7% | ||
| PM (TTM) | 1.67% | ||
| GM | 78.26% |
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 well above the Cost of Capital (WACC), so GIS is creating value.
The number of shares outstanding for GIS remains at a similar level compared to 1 year ago.
GIS has less shares outstanding than it did 5 years ago.
GIS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.46 indicates that GIS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.46, GIS belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
The Debt to FCF ratio of GIS is 2.59, which is a good value as it means it would take GIS, 2.59 years of fcf income to pay off all of its debts.
GIS has a better Debt to FCF ratio (2.59) than 92.96% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GIS has dependencies on debt financing.
GIS has a Debt to Equity ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.82
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.60 indicates that GIS should not have too much problems paying its short term obligations.
GIS has a Current ratio of 1.60. This is comparable to the rest of the industry: GIS outperforms 43.66% of its industry peers.
GIS has a Quick Ratio of 1.45. This is a normal value and indicates that GIS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.45, GIS perfoms like the industry average, outperforming 40.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
GIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.93%, which is quite impressive.
GIS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 6.04% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
3.2 Future
GIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.07% yearly.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y75.86%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
EPS Next 5Y17.07%
Revenue Next Year1.43%
Revenue Next 2Y2.68%
Revenue Next 3Y3.32%
Revenue Next 5Y3.46%
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.
4. Valuation
4.1 Price/Earnings Ratio
GIS is valuated correctly with a Price/Earnings ratio of 13.30.
Based on the Price/Earnings ratio, GIS is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (28.18), we can say GIS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.01, the valuation of GIS can be described as correct.
Based on the Price/Forward Earnings ratio, GIS is valued cheaper than 94.37% of the companies in the same industry.
GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GIS is cheaper than 87.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaper than 92.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 10.7 |
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 decent profitability rating of GIS may justify a higher PE ratio.
GIS's earnings are expected to grow with 25.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y36.32%
EPS Next 3Y25.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, 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 9.28. GIS pays more dividend than 91.55% of the companies in the same industry.
GIS's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 816.25% of its income as dividend. This is not a sustainable payout ratio.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP816.25%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
FRA:GIS (5/5/2025, 5:24:44 PM)
90.73
-0.49 (-0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.69%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap112.96B
Analysts80
Price Target100.16 (10.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.77
Dividend Growth(5Y)4.45%
DP816.25%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.42%
Min EPS beat(2)9.39%
Max EPS beat(2)27.44%
EPS beat(4)4
Avg EPS beat(4)18.34%
Min EPS beat(4)9.39%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)9.1%
EPS beat(12)9
Avg EPS beat(12)10.84%
EPS beat(16)11
Avg EPS beat(16)7.78%
Revenue beat(2)2
Avg Revenue beat(2)4.74%
Min Revenue beat(2)3.87%
Max Revenue beat(2)5.61%
Revenue beat(4)4
Avg Revenue beat(4)3.59%
Min Revenue beat(4)1.47%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.62%
Revenue beat(12)10
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)3.68%
PT rev (1m)-2.06%
PT rev (3m)3.2%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 12.01 | ||
| P/S | 4.46 | ||
| P/FCF | 12.43 | ||
| P/OCF | 11.83 | ||
| P/B | 6.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)6.82
EY7.52%
EPS(NY)7.55
Fwd EY8.32%
FCF(TTM)7.3
FCFY8.04%
OCF(TTM)7.67
OCFY8.45%
SpS20.36
BVpS13.69
TBVpS-6.32
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.48% | ||
| ROCE | 23.07% | ||
| ROIC | 17.45% | ||
| ROICexc | 22.16% | ||
| ROICexgc | 93.82% | ||
| OM | 37.7% | ||
| PM (TTM) | 1.67% | ||
| GM | 78.26% | ||
| FCFM | 35.84% |
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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 18.9% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 11.4 | ||
| Cash Conversion | 79.57% | ||
| Profit Quality | 2146.88% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.46 |
F-Score7
WACC9.6%
ROIC/WACC1.82
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 Y75.86%
EPS Next 2Y36.32%
EPS Next 3Y25.4%
EPS Next 5Y17.07%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.43%
Revenue Next 2Y2.68%
Revenue Next 3Y3.32%
Revenue Next 5Y3.46%
EBIT growth 1Y9.93%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year78.52%
EBIT Next 3Y25.19%
EBIT Next 5Y17.4%
FCF growth 1Y38.86%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y35.25%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%