GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - Deutsche Boerse Ag - US3755581036 - Common Stock - Currency: EUR
Taking everything into account, GIS scores 6 out of 10 in our fundamental rating. GIS was compared to 67 industry peers in the Biotechnology industry. GIS scores excellent on profitability, but there are some minor concerns on its financial health. GIS is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make GIS suitable 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.
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
The Return On Assets of GIS (10.57%) is better than 91.04% of its industry peers.
GIS has a Return On Equity of 31.13%. This is amongst the best in the industry. GIS outperforms 94.03% of its industry peers.
GIS has a better Return On Invested Capital (18.81%) than 95.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIS is above the industry average of 12.64%.
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
GIS has a better Profit Margin (20.76%) than 89.55% of its industry peers.
In the last couple of years the Profit Margin of GIS has declined.
GIS's Operating Margin of 38.17% is amongst the best of the industry. GIS outperforms 95.52% of its industry peers.
In the last couple of years the Operating Margin of GIS has grown nicely.
GIS has a Gross Margin of 78.29%. This is in the better half of the industry: GIS outperforms 73.13% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.73 indicates that GIS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.73, GIS is in the better half of the industry, outperforming 77.61% of the companies in the same industry.
The Debt to FCF ratio of GIS is 2.53, which is a good value as it means it would take GIS, 2.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GIS (2.53) is better than 89.55% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that GIS has dependencies on debt financing.
GIS has a worse Debt to Equity ratio (1.16) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.73 |
ROIC/WACC2.03
WACC9.26%
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.
GIS has a worse Current ratio (1.37) than 68.66% of its industry peers.
GIS has a Quick Ratio of 1.23. 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 Quick ratio of 1.23 is on the low side compared to the rest of the industry. GIS is outperformed by 67.16% 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.
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 4.68% 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)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 Year1.24%
Revenue Next 2Y2.44%
Revenue Next 3Y3.3%
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.
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
The Price/Earnings ratio is 14.25, which indicates a correct valuation of GIS.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 89.55% of the companies listed in the same industry.
GIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.74, GIS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 95.52% of the companies listed in the same industry.
GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued cheaper than 85.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 88.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.95 | ||
| EV/EBITDA | 11.23 |
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)0.19
PEG (5Y)N/A
EPS Next 2Y37.11%
EPS Next 3Y26.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, GIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 14.28, GIS pays a better dividend. On top of this GIS pays more dividend than 94.03% of the companies listed 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 | 2.76% |
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 (7/11/2025, 7:00:00 PM)
94.51
-2.96 (-3.04%)
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 Cap117.56B
Analysts80
Price Target103.57 (9.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.69
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)0.2%
PT rev (3m)-0.67%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 12.74 | ||
| P/S | 4.78 | ||
| P/FCF | 13.95 | ||
| P/OCF | 13.25 | ||
| P/B | 7.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.23 |
EPS(TTM)6.63
EY7.02%
EPS(NY)7.42
Fwd EY7.85%
FCF(TTM)6.77
FCFY7.17%
OCF(TTM)7.13
OCFY7.55%
SpS19.77
BVpS13.19
TBVpS-5.85
PEG (NY)0.19
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 | 3.73 |
F-Score8
WACC9.26%
ROIC/WACC2.03
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 Year1.24%
Revenue Next 2Y2.44%
Revenue Next 3Y3.3%
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%