GILEAD SCIENCES INC (1GILD.MI) Stock Fundamental Analysis
BIT:1GILD - Euronext Milan - US3755581036 - Common Stock - Currency: EUR
Taking everything into account, 1GILD scores 7 out of 10 in our fundamental rating. 1GILD was compared to 65 industry peers in the Biotechnology industry. 1GILD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1GILD. With these ratings, 1GILD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
1GILD had positive earnings in the past year.
In the past year 1GILD had a positive cash flow from operations.
In the past 5 years 1GILD has always been profitable.
Each year in the past 5 years 1GILD had a positive operating cash flow.
1.2 Ratios
1GILD's Return On Assets of 10.57% is amongst the best of the industry. 1GILD outperforms 87.50% of its industry peers.
1GILD has a Return On Equity of 31.13%. This is amongst the best in the industry. 1GILD outperforms 91.67% of its industry peers.
With an excellent Return On Invested Capital value of 18.81%, 1GILD belongs to the best of the industry, outperforming 93.06% of the companies in the same industry.
1GILD had an Average Return On Invested Capital over the past 3 years of 15.57%. This is above the industry average of 12.12%.
The 3 year average ROIC (15.57%) for 1GILD is below the current ROIC(18.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROIC | 18.81% |
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
1GILD has a better Profit Margin (20.76%) than 86.11% of its industry peers.
In the last couple of years the Profit Margin of 1GILD has declined.
The Operating Margin of 1GILD (38.17%) is better than 93.06% of its industry peers.
In the last couple of years the Operating Margin of 1GILD has grown nicely.
1GILD has a better Gross Margin (78.29%) than 72.22% of its industry peers.
In the last couple of years the Gross Margin of 1GILD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1GILD is creating value.
The number of shares outstanding for 1GILD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1GILD has less shares outstanding
1GILD has a worse debt/assets ratio than last year.
2.2 Solvency
1GILD has an Altman-Z score of 3.74. This indicates that 1GILD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.74, 1GILD belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.
The Debt to FCF ratio of 1GILD is 2.53, which is a good value as it means it would take 1GILD, 2.53 years of fcf income to pay off all of its debts.
1GILD's Debt to FCF ratio of 2.53 is amongst the best of the industry. 1GILD outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that 1GILD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.16, 1GILD is in line with its industry, outperforming 40.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.74 |
ROIC/WACC2.41
WACC7.82%
2.3 Liquidity
1GILD has a Current Ratio of 1.37. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.37, 1GILD is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
1GILD has a Quick Ratio of 1.23. This is a normal value and indicates that 1GILD is financially healthy and should not expect problems in meeting its short term obligations.
1GILD's Quick ratio of 1.23 is on the low side compared to the rest of the industry. 1GILD is outperformed by 65.28% of its industry peers.
1GILD 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 | 1.37 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.93% 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.
1GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
1GILD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
EPS 1Y (TTM)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
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 18.00% yearly.
Based on estimates for the next years, 1GILD will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y76.08%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
EPS Next 5Y18%
Revenue Next Year1.14%
Revenue Next 2Y2.39%
Revenue Next 3Y3.28%
Revenue Next 5Y3.58%
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
Based on the Price/Earnings ratio of 14.33, the valuation of 1GILD can be described as correct.
Based on the Price/Earnings ratio, 1GILD is valued cheaper than 86.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, 1GILD is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.86, 1GILD is valued correctly.
1GILD's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1GILD is cheaper than 88.89% of the companies in the same industry.
1GILD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 12.86 |
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 81.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1GILD is valued cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 11.27 |
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.
1GILD has an outstanding profitability rating, which may justify a higher PE ratio.
1GILD's earnings are expected to grow with 26.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y36.75%
EPS Next 3Y26.02%
5. Dividend
5.1 Amount
1GILD has a Yearly Dividend Yield of 2.94%. 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 11.85. 1GILD pays more dividend than 94.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1GILD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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
66.02% of the earnings are spent on dividend by 1GILD. This is not a sustainable payout ratio.
The dividend of 1GILD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.02%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
BIT:1GILD (6/20/2025, 7:00:00 PM)
94.72
+0.08 (+0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap117.83B
Analysts80
Price Target103.98 (9.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend2.69
Dividend Growth(5Y)4.45%
DP66.02%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.4%
Min EPS beat(2)-0.59%
Max EPS beat(2)9.39%
EPS beat(4)3
Avg EPS beat(4)14.86%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)10.6%
EPS beat(12)8
Avg EPS beat(12)9.55%
EPS beat(16)11
Avg EPS beat(16)7.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)3.87%
Revenue beat(4)3
Avg Revenue beat(4)1.75%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)9
Avg Revenue beat(12)2.97%
Revenue beat(16)13
Avg Revenue beat(16)3.85%
PT rev (1m)0.38%
PT rev (3m)-0.2%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 12.86 | ||
| P/S | 4.8 | ||
| P/FCF | 14.01 | ||
| P/OCF | 13.3 | ||
| P/B | 7.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)6.61
EY6.98%
EPS(NY)7.37
Fwd EY7.78%
FCF(TTM)6.76
FCFY7.14%
OCF(TTM)7.12
OCFY7.52%
SpS19.74
BVpS13.16
TBVpS-5.84
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 31.13% | ||
| ROCE | 24.88% | ||
| ROIC | 18.81% | ||
| ROICexc | 22.94% | ||
| ROICexgc | 97.64% | ||
| OM | 38.17% | ||
| PM (TTM) | 20.76% | ||
| GM | 78.29% | ||
| FCFM | 34.26% |
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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.82% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 165.03% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.74 |
F-Score8
WACC7.82%
ROIC/WACC2.41
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)77.93%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%237.12%
EPS Next Y76.08%
EPS Next 2Y36.75%
EPS Next 3Y26.02%
EPS Next 5Y18%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%-0.28%
Revenue Next Year1.14%
Revenue Next 2Y2.39%
Revenue Next 3Y3.28%
Revenue Next 5Y3.58%
EBIT growth 1Y8.48%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year72.29%
EBIT Next 3Y24.91%
EBIT Next 5Y17.27%
FCF growth 1Y17.4%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.5%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%