GILEAD SCIENCES INC (GILD)
US3755581036 - Common Stock
We assign a fundamental rating of 6 out of 10 to GILD. GILD was compared to 586 industry peers in the Biotechnology industry. While GILD has a great profitability rating, there are some minor concerns on its financial health. GILD has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year GILD was profitable.
In the past year GILD had a positive cash flow from operations.
In the past 5 years GILD has always been profitable.
In the past 5 years GILD always reported a positive cash flow from operatings.
1.2 Ratios
GILD has a Return On Assets of 0.86%. This is amongst the best in the industry. GILD outperforms 94.02% of its industry peers.
GILD's Return On Equity of 2.76% is amongst the best of the industry. GILD outperforms 94.87% of its industry peers.
GILD has a better Return On Invested Capital (16.18%) than 97.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 14.94%.
The last Return On Invested Capital (16.18%) for GILD is above the 3 year average (14.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.76% | ||
| ROIC | 16.18% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)14.77%
ROIC(5y)11.39%
1.3 Margins
GILD has a better Profit Margin (1.76%) than 94.36% of its industry peers.
GILD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 31.81%, GILD belongs to the top of the industry, outperforming 98.63% of the companies in the same industry.
GILD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 75.78%, GILD belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.81% | ||
| PM (TTM) | 1.76% | ||
| GM | 75.78% |
OM growth 3Y27.82%
OM growth 5Y-1.87%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
GILD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
The number of shares outstanding for GILD has been reduced compared to 5 years ago.
Compared to 1 year ago, GILD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that GILD is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, GILD is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
The Debt to FCF ratio of GILD is 3.19, which is a good value as it means it would take GILD, 3.19 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.19, GILD belongs to the best of the industry, outperforming 96.07% of the companies in the same industry.
GILD has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
GILD has a worse Debt to Equity ratio (1.23) than 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 2.59 |
ROIC/WACC2.13
WACC7.6%
2.3 Liquidity
A Current Ratio of 1.08 indicates that GILD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.08, GILD is not doing good in the industry: 88.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.94 indicates that GILD may have some problems paying its short term obligations.
GILD has a Quick ratio of 0.94. This is amonst the worse of the industry: GILD underperforms 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
GILD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.28%.
Measured over the past 5 years, GILD shows a small growth in Earnings Per Share. The EPS has been growing by 1.09% on average per year.
The Revenue has been growing slightly by 1.51% in the past year.
Measured over the past years, GILD shows a small growth in Revenue. The Revenue has been growing by 4.15% on average per year.
EPS 1Y (TTM)-33.28%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS growth Q2Q-196.35%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Revenue growth Q2Q5.26%
3.2 Future
The Earnings Per Share is expected to grow by 4.01% on average over the next years.
Based on estimates for the next years, GILD will show a small growth in Revenue. The Revenue will grow by 2.50% on average per year.
EPS Next Y2.9%
EPS Next 2Y3.74%
EPS Next 3Y4.1%
EPS Next 5Y4.01%
Revenue Next Year1.47%
Revenue Next 2Y1.72%
Revenue Next 3Y2.16%
Revenue Next 5Y2.5%
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
GILD is valuated correctly with a Price/Earnings ratio of 15.57.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 97.09% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.60. GILD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 8.94, the valuation of GILD can be described as reasonable.
98.29% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, GILD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 97.95% of the companies listed in the same industry.
GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 98.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GILD does not grow enough to justify the current Price/Earnings ratio.
GILD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.37
PEG (5Y)14.34
EPS Next 2Y3.74%
EPS Next 3Y4.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.54%, GILD is a good candidate for dividend investing.
GILD's Dividend Yield is rather good when compared to the industry average which is at 31.61. GILD pays more dividend than 98.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GILD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
5.2 History
The dividend of GILD has a limited annual growth rate of 5.90%.
GILD has been paying a dividend for at least 10 years, so it has a reliable track record.
As GILD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.9%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
791.32% of the earnings are spent on dividend by GILD. This is not a sustainable payout ratio.
GILD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP791.32%
EPS Next 2Y3.74%
EPS Next 3Y4.1%
GILEAD SCIENCES INC
NASDAQ:GILD (5/17/2024, 7:01:44 PM)
After market: 67.58 -0.14 (-0.21%)67.72
-0.14 (-0.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap84.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 8.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.37
PEG (5Y)14.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.81% | ||
| PM (TTM) | 1.76% | ||
| GM | 75.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-33.28%
EPS 3Y-0.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.51%
Revenue growth 3Y3.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y