GILEAD SCIENCES INC (1GILD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GILD - US3755581036 - Common Stock
112.44 EUR
+6.56 (+6.2%)
Taking everything into account, 1GILD scores 6 out of 10 in our fundamental rating. 1GILD was compared to 85 industry peers in the Biotechnology industry. 1GILD has an excellent profitability rating, but there are some minor concerns on its financial health. 1GILD may be a bit undervalued, certainly considering the very reasonable score on growth Finally 1GILD also has an excellent dividend rating. With these ratings, 1GILD could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- 1GILD had positive earnings in the past year.
- 1GILD had a positive operating cash flow in the past year.
- Each year in the past 5 years 1GILD has been profitable.
- In the past 5 years 1GILD always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1GILD (13.86%) is better than 86.75% of its industry peers.
- Looking at the Return On Equity, with a value of 37.80%, 1GILD belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.
- 1GILD has a better Return On Invested Capital (18.54%) than 95.18% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1GILD 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
- With an excellent Profit Margin value of 27.88%, 1GILD belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1GILD has declined.
- 1GILD's Operating Margin of 38.96% is amongst the best of the industry. 1GILD outperforms 95.18% of its industry peers.
- In the last couple of years the Operating Margin of 1GILD has grown nicely.
- 1GILD has a Gross Margin of 78.72%. This is in the better half of the industry: 1GILD outperforms 67.47% of its industry peers.
- 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
- 1GILD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for 1GILD remains at a similar level compared to 1 year ago.
- 1GILD has less shares outstanding than it did 5 years ago.
- 1GILD has a worse debt/assets ratio than last year.
2.2 Solvency
- There is no outstanding debt for 1GILD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.28
WACC8.14%
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 worse Current ratio (1.53) than 61.45% of its industry peers.
- A Quick Ratio of 1.17 indicates that 1GILD should not have too much problems paying its short term obligations.
- 1GILD's Quick ratio of 1.17 is on the low side compared to the rest of the industry. 1GILD is outperformed by 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- 1GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.88%, which is quite impressive.
- 1GILD 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 2.78% in the past 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
- The Earnings Per Share is expected to grow by 19.55% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.01% on average over the next years.
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
- 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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.18, 1GILD is valued correctly.
- Based on the Price/Earnings ratio, 1GILD is valued cheaper than 87.95% of the companies in the same industry.
- 1GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- 1GILD is valuated correctly with a Price/Forward Earnings ratio of 14.95.
- 93.98% of the companies in the same industry are more expensive than 1GILD, based on the Price/Forward Earnings ratio.
- 1GILD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1GILD is valued cheaper than 85.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1GILD is valued cheaply inside the industry as 87.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.27 | ||
| EV/EBITDA | 10.07 |
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 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%. Purely for dividend investing, there may be better candidates out there.
- 1GILD's Dividend Yield is rather good when compared to the industry average which is at 0.70. 1GILD pays more dividend than 95.18% of the companies in the same industry.
- 1GILD's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| 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
- 12.00% of the earnings are spent on dividend by 1GILD. This is a low number and sustainable payout ratio.
- The dividend of 1GILD is growing, but earnings are growing more, so the dividend growth is 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 16.18 and the Price/Book (PB) ratio is 7.66.
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.