NASDAQ:GILD is probably undervalued for the fundamentals it is displaying.

Uncover the hidden value in GILEAD SCIENCES INC (NASDAQ:GILD) as our stock screening tool recommends it as an undervalued choice. NASDAQ:GILD maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Unpacking NASDAQ:GILD's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:GILD has earned a 7 for valuation:

• The Price/Earnings ratio is 11.46, which indicates a very decent valuation of GILD.
• Based on the Price/Earnings ratio, GILD is valued cheaper than 98.17% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 24.79. GILD is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 10.78 indicates a reasonable valuation of GILD.
• Based on the Price/Forward Earnings ratio, GILD is valued cheaper than 98.83% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 20.41. GILD is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 97.17% of the companies are valued more expensively.
• 98.17% of the companies in the same industry are more expensive than GILD, based on the Price/Free Cash Flow ratio.
• The excellent profitability rating of GILD may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:GILD?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:GILD has achieved a 8:

• Looking at the Return On Assets, with a value of 9.42%, GILD belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
• GILD has a Return On Equity of 26.33%. This is amongst the best in the industry. GILD outperforms 98.17% of its industry peers.
• GILD's Return On Invested Capital of 12.57% is amongst the best of the industry. GILD outperforms 96.83% of its industry peers.
• The last Return On Invested Capital (12.57%) for GILD is above the 3 year average (11.27%), which is a sign of increasing profitability.
• GILD has a better Profit Margin (21.45%) than 97.67% of its industry peers.
• GILD has a Operating Margin of 30.16%. This is amongst the best in the industry. GILD outperforms 97.67% of its industry peers.
• Looking at the Gross Margin, with a value of 78.81%, GILD belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.

Health Insights: NASDAQ:GILD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:GILD, the assigned 5 for health provides valuable insights:

• GILD has a better Altman-Z score (2.81) than 73.67% of its industry peers.
• The Debt to FCF ratio of GILD is 3.18, which is a good value as it means it would take GILD, 3.18 years of fcf income to pay off all of its debts.
• GILD has a better Debt to FCF ratio (3.18) than 95.00% of its industry peers.

Understanding NASDAQ:GILD's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:GILD boasts a 4 out of 10:

• The Earnings Per Share has grown by an nice 11.13% over the past year.
• 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 accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of GILD for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.