GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
Europe - FRA:GIS - US3755581036 - Common Stock
96.415 EUR
+1.28 (+1.34%)
We assign a fundamental rating of 7 out of 10 to GIS. GIS was compared to 73 industry peers in the Biotechnology industry. GIS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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 and quality investing!.
1. Profitability
1.1 Basic Checks
GIS had positive earnings in the past year.
In the past year GIS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 11.33%, GIS belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
The Return On Equity of GIS (32.08%) is better than 91.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.69%, GIS belongs to the top of the industry, outperforming 94.52% 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 in line with the industry average of 14.37%.
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
The Profit Margin of GIS (21.87%) is better than 87.67% of its industry peers.
In the last couple of years the Profit Margin of GIS has declined.
Looking at the Operating Margin, with a value of 38.12%, GIS belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
GIS's Operating Margin has improved in the last couple of years.
GIS's Gross Margin of 78.53% is fine compared to the rest of the industry. GIS outperforms 72.60% 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 | 38.12% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GIS is creating value.
GIS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
GIS has an Altman-Z score of 3.84. 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 3.84, GIS belongs to the top of the industry, outperforming 83.56% of the companies in the same industry.
GIS has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as GIS would need 2.66 years to pay back of all of its debts.
GIS has a better Debt to FCF ratio (2.66) than 87.67% 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.
With a Debt to Equity ratio value of 1.13, GIS perfoms like the industry average, outperforming 42.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 3.84 |
ROIC/WACC2.06
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GIS should not have too much problems paying its short term obligations.
GIS has a Current ratio of 1.32. This is in the lower half of the industry: GIS underperforms 63.01% 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 Quick ratio of 1.15. This is in the lower half of the industry: GIS underperforms 64.38% of its industry peers.
The current and quick ratio evaluation for GIS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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.
The Revenue has been growing slightly by 3.81% in the past year.
The Revenue has been growing slightly by 5.08% on average over the past years.
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
GIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.75% yearly.
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 Y79.22%
EPS Next 2Y37.87%
EPS Next 3Y27.35%
EPS Next 5Y19.75%
Revenue Next Year1.62%
Revenue Next 2Y2.78%
Revenue Next 3Y3.73%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.61 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 86.30% of the companies listed in the same industry.
GIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.91, GIS is valued correctly.
Based on the Price/Forward Earnings ratio, GIS is valued cheaper than 91.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, GIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.91 |
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 86.30% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaply inside the industry as 87.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.98 | ||
| EV/EBITDA | 11.48 |
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 27.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y37.87%
EPS Next 3Y27.35%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
GIS's Dividend Yield is rather good when compared to the industry average which is at 13.34. GIS pays more dividend than 94.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 62.75% 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.
DP62.75%
EPS Next 2Y37.87%
EPS Next 3Y27.35%
FRA:GIS (10/6/2025, 10:00:02 AM)
96.415
+1.28 (+1.34%)
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 Cap119.63B
Analysts81.11
Price Target108.55 (12.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.68
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)-0.98%
PT rev (3m)4.8%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 12.91 | ||
| P/S | 4.86 | ||
| P/FCF | 14.98 | ||
| P/OCF | 14.23 | ||
| P/B | 7.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.48 |
EPS(TTM)6.6
EY6.85%
EPS(NY)7.47
Fwd EY7.75%
FCF(TTM)6.43
FCFY6.67%
OCF(TTM)6.78
OCFY7.03%
SpS19.82
BVpS13.51
TBVpS-4.95
PEG (NY)0.18
PEG (5Y)N/A
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%
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 Turnover0.52
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 | 3.84 |
F-Score8
WACC9.07%
ROIC/WACC2.06
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 Y79.22%
EPS Next 2Y37.87%
EPS Next 3Y27.35%
EPS Next 5Y19.75%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.62%
Revenue Next 2Y2.78%
Revenue Next 3Y3.73%
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%