GILEAD SCIENCES INC (GIS.DE) Stock Fundamental Analysis
FRA:GIS - US3755581036 - Common Stock
98.01 EUR
+0.89 (+0.92%)
Overall GIS gets a fundamental rating of 7 out of 10. We evaluated GIS against 74 industry peers in the Biotechnology industry. GIS gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on GIS. These ratings would make GIS suitable 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.
In the past 5 years GIS has always been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS has a Return On Assets of 11.33%. This is amongst the best in the industry. GIS outperforms 90.54% of its industry peers.
With an excellent Return On Equity value of 32.08%, GIS belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.69%, GIS belongs to the top of the industry, outperforming 95.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GIS is above the industry average of 12.87%.
The 3 year average ROIC (15.57%) for GIS is below the current ROIC(18.69%), indicating increased profibility in the last year.
| 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's Profit Margin of 21.87% is amongst the best of the industry. GIS outperforms 90.54% of its industry peers.
GIS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 38.12%, GIS belongs to the top of the industry, outperforming 93.24% 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 71.62% 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
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.
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
GIS has an Altman-Z score of 3.90. This indicates that GIS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.90, GIS belongs to the best of the industry, outperforming 82.43% 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.
The Debt to FCF ratio of GIS (2.66) is better than 87.84% 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.
GIS's Debt to Equity ratio of 1.13 is in line compared to the rest of the industry. GIS outperforms 41.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 3.9 |
ROIC/WACC2.02
WACC9.26%
2.3 Liquidity
GIS has a Current Ratio of 1.32. 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 Current ratio value of 1.32, GIS is not doing good in the industry: 66.22% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that GIS should not have too much problems paying its short term obligations.
GIS's Quick ratio of 1.15 is on the low side compared to the rest of the industry. GIS is outperformed by 66.22% of its industry peers.
GIS does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 64.68% 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.
The Revenue has been growing slightly by 3.81% in the past 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
Based on estimates for the next years, GIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.19% on average per year.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 4.06% on average per year.
EPS Next Y79.18%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
EPS Next 5Y19.19%
Revenue Next Year1.55%
Revenue Next 2Y2.78%
Revenue Next 3Y3.69%
Revenue Next 5Y4.06%
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
A Price/Earnings ratio of 14.81 indicates a correct valuation of GIS.
GIS's Price/Earnings ratio is rather cheap when compared to the industry. GIS is cheaper than 89.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (27.06), we can say GIS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.07, the valuation of GIS can be described as correct.
89.19% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GIS is cheaper than 87.84% of the companies in the same industry.
89.19% 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 | 15.18 | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
The 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 27.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y37.95%
EPS Next 3Y27.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, 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 12.39. GIS pays more dividend than 91.89% of the companies in the same industry.
GIS's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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 3Y27.34%
FRA:GIS (9/5/2025, 7:00:00 PM)
98.01
+0.89 (+0.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.93%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap121.61B
Analysts81.11
Price Target109.62 (11.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend2.69
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)6.64%
PT rev (3m)6.08%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 13.07 | ||
| P/S | 4.93 | ||
| P/FCF | 15.18 | ||
| P/OCF | 14.42 | ||
| P/B | 7.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.75 |
EPS(TTM)6.62
EY6.75%
EPS(NY)7.5
Fwd EY7.65%
FCF(TTM)6.46
FCFY6.59%
OCF(TTM)6.8
OCFY6.94%
SpS19.89
BVpS13.56
TBVpS-4.96
PEG (NY)0.19
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 | 3.9 |
F-Score8
WACC9.26%
ROIC/WACC2.02
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 Y79.18%
EPS Next 2Y37.95%
EPS Next 3Y27.34%
EPS Next 5Y19.19%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.55%
Revenue Next 2Y2.78%
Revenue Next 3Y3.69%
Revenue Next 5Y4.06%
EBIT growth 1Y5.92%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year73.23%
EBIT Next 3Y24.47%
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%