GILEAD SCIENCES INC (1GILD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GILD - US3755581036 - Common Stock
112.44 EUR
+8.92 (+8.62%)
1GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Biotechnology industry. While 1GILD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1GILD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 1GILD also has an excellent dividend rating. These ratings could make 1GILD a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year 1GILD was profitable.
- 1GILD had a positive operating cash flow in the past year.
- In the past 5 years 1GILD has always been profitable.
- 1GILD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1GILD's Return On Assets of 13.86% is amongst the best of the industry. 1GILD outperforms 88.24% of its industry peers.
- 1GILD has a Return On Equity of 37.80%. This is amongst the best in the industry. 1GILD outperforms 97.65% of its industry peers.
- 1GILD has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. 1GILD outperforms 97.65% of its industry peers.
- 1GILD had an Average Return On Invested Capital over the past 3 years of 16.22%. This is above the industry average of 11.71%.
- The last Return On Invested Capital (18.54%) for 1GILD is above the 3 year average (16.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.86% | ||
| ROE | 37.8% | ||
| ROIC | 18.54% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)16.22%
ROIC(5y)15.08%
1.3 Margins
- Looking at the Profit Margin, with a value of 27.88%, 1GILD belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
- 1GILD's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 38.96%, 1GILD belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1GILD has grown nicely.
- With a decent Gross Margin value of 78.72%, 1GILD is doing good in the industry, outperforming 67.06% of the companies in the same industry.
- 1GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.96% | ||
| PM (TTM) | 27.88% | ||
| GM | 78.72% |
OM growth 3Y0.61%
OM growth 5Y7.43%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1GILD is creating value.
- Compared to 1 year ago, 1GILD has about the same amount of shares outstanding.
- 1GILD has less shares outstanding than it did 5 years ago.
- 1GILD has a worse debt/assets ratio than last year.
2.2 Solvency
- 1GILD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.23
WACC8.3%
2.3 Liquidity
- 1GILD has a Current Ratio of 1.53. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
- 1GILD has a Current ratio of 1.53. This is in the lower half of the industry: 1GILD underperforms 60.00% of its industry peers.
- 1GILD has a Quick Ratio of 1.17. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1GILD (1.17) is worse than 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 84.88% over the past year.
- 1GILD 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, 1GILD shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
- 1GILD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
EPS 1Y (TTM)84.88%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%22.28%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
3.2 Future
- 1GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.55% yearly.
- Based on estimates for the next years, 1GILD will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.55%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y4.01%
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 16.37 indicates a correct valuation of 1GILD.
- Based on the Price/Earnings ratio, 1GILD is valued cheaper than 91.76% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. 1GILD is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 15.13, which indicates a correct valuation of 1GILD.
- 1GILD's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1GILD is cheaper than 92.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, 1GILD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1GILD indicates a rather cheap valuation: 1GILD is cheaper than 88.24% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 1GILD is valued cheaper than 89.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.48 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
- 1GILD'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 1GILD may justify a higher PE ratio.
- 1GILD's earnings are expected to grow with 27.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
- 1GILD has a Yearly Dividend Yield of 2.51%.
- Compared to an average industry Dividend Yield of 0.70, 1GILD pays a better dividend. On top of this 1GILD pays more dividend than 94.12% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1GILD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
- The dividend of 1GILD has a limited annual growth rate of 4.45%.
Dividend Growth(5Y)4.45%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1GILD pays out 12.00% of its income as dividend. This is a sustainable payout ratio.
- 1GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
GILEAD SCIENCES INC / 1GILD.MI FAQ
What is the ChartMill fundamental rating of GILEAD SCIENCES INC (1GILD.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1GILD.MI.
What is the valuation status for 1GILD stock?
ChartMill assigns a valuation rating of 8 / 10 to GILEAD SCIENCES INC (1GILD.MI). This can be considered as Undervalued.
Can you provide the profitability details for GILEAD SCIENCES INC?
GILEAD SCIENCES INC (1GILD.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of GILEAD SCIENCES INC (1GILD.MI) stock?
The Price/Earnings (PE) ratio for GILEAD SCIENCES INC (1GILD.MI) is 16.37 and the Price/Book (PB) ratio is 7.76.
What is the financial health of GILEAD SCIENCES INC (1GILD.MI) stock?
The financial health rating of GILEAD SCIENCES INC (1GILD.MI) is 5 / 10.