GILEAD SCIENCES INC (1GILD.MI) Stock Fundamental Analysis
BIT:1GILD - Euronext Milan - US3755581036 - Common Stock - Currency: EUR
1GILD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 75 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 is cheap, but on the other hand it scores bad on growth. These ratings would make 1GILD suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year 1GILD was profitable.
In the past year 1GILD had a positive cash flow from operations.
Of the past 5 years 1GILD 4 years were profitable.
1GILD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.23%, 1GILD is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.69%, 1GILD is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
The Return On Invested Capital of 1GILD (20.34%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1GILD is above the industry average of 12.02%.
The last Return On Invested Capital (20.34%) for 1GILD is above the 3 year average (15.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.69% | ||
| ROIC | 20.34% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
1.3 Margins
Looking at the Profit Margin, with a value of 0.45%, 1GILD is in the better half of the industry, outperforming 77.94% 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 38.38% is amongst the best of the industry. 1GILD outperforms 97.06% of its industry peers.
1GILD's Operating Margin has been stable in the last couple of years.
1GILD has a Gross Margin of 77.80%. This is in the better half of the industry: 1GILD outperforms 75.00% of its industry peers.
1GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.38% | ||
| PM (TTM) | 0.45% | ||
| GM | 77.8% |
OM growth 3Y30.17%
OM growth 5Y-0.79%
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1GILD is creating value.
1GILD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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/WACC2.24
WACC9.09%
2.3 Liquidity
1GILD has a Current Ratio of 1.11. 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 Current ratio of 1.11 is on the low side compared to the rest of the industry. 1GILD is outperformed by 73.53% of its industry peers.
1GILD has a Quick Ratio of 1.11. This is a bad value and indicates that 1GILD is not financially healthy enough and could expect problems in meeting its short term obligations.
1GILD has a Quick ratio of 0.82. This is in the lower half of the industry: 1GILD underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for 1GILD have decreased strongly by -34.52% in the last year.
The Earnings Per Share has been decreasing by -7.01% on average over the past years.
EPS 1Y (TTM)-34.52%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%10.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.38%
3.2 Future
Based on estimates for the next years, 1GILD will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.97% on average per year.
1GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y71.54%
EPS Next 2Y34.25%
EPS Next 3Y24.08%
EPS Next 5Y15.97%
Revenue Next Year0.39%
Revenue Next 2Y1.79%
Revenue Next 3Y2.24%
Revenue Next 5Y3.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.96, which indicates a rather expensive current valuation of 1GILD.
Compared to the rest of the industry, the Price/Earnings ratio of 1GILD indicates a rather cheap valuation: 1GILD is cheaper than 86.76% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.30. 1GILD is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.21, which indicates a correct valuation of 1GILD.
92.65% of the companies in the same industry are more expensive than 1GILD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, 1GILD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 12.21 |
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 86.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1GILD indicates a rather cheap valuation: 1GILD is cheaper than 91.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 8.5 |
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.
1GILD has a very decent profitability rating, which may justify a higher PE ratio.
1GILD's earnings are expected to grow with 24.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y34.25%
EPS Next 3Y24.08%
5. Dividend
5.1 Amount
1GILD has a Yearly Dividend Yield of 2.98%.
1GILD's Dividend Yield is rather good when compared to the industry average which is at 4.24. 1GILD pays more dividend than 97.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, 1GILD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of 1GILD has a limited annual growth rate of 5.90%.
Dividend Growth(5Y)5.9%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
748.41% 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.
DP748.41%
EPS Next 2Y34.25%
EPS Next 3Y24.08%
BIT:1GILD (2/10/2025, 7:00:00 PM)
92.44
-3.63 (-3.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap115.18B
Analysts77.89
Price Target96.73 (4.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend3.06
Dividend Growth(5Y)5.9%
DP748.41%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.31%
Min EPS beat(2)23.18%
Max EPS beat(2)27.44%
EPS beat(4)3
Avg EPS beat(4)14.95%
Min EPS beat(4)-4.16%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)9.12%
EPS beat(12)8
Avg EPS beat(12)5.27%
EPS beat(16)10
Avg EPS beat(16)7.18%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)1.47%
Max Revenue beat(2)5.61%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)2.27%
Revenue beat(12)10
Avg Revenue beat(12)3.78%
Revenue beat(16)12
Avg Revenue beat(16)3.39%
PT rev (1m)0.92%
PT rev (3m)28.42%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)-9.35%
EPS NY rev (1m)0.02%
EPS NY rev (3m)15.28%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 12.21 | ||
| P/S | 4.25 | ||
| P/FCF | 12.26 | ||
| P/OCF | 12 | ||
| P/B | 6.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.5 |
EPS(TTM)4.41
EY4.77%
EPS(NY)7.57
Fwd EY8.19%
FCF(TTM)7.54
FCFY8.15%
OCF(TTM)7.7
OCFY8.33%
SpS21.75
BVpS14.13
TBVpS-8.05
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.69% | ||
| ROCE | 25.37% | ||
| ROIC | 20.34% | ||
| ROICexc | 23.06% | ||
| ROICexgc | 97.8% | ||
| OM | 38.38% | ||
| PM (TTM) | 0.45% | ||
| GM | 77.8% | ||
| FCFM | 34.65% |
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
ROICexc(3y)17.6%
ROICexc(5y)14.47%
ROICexgc(3y)105.86%
ROICexgc(5y)78.76%
ROCE(3y)18.77%
ROCE(5y)14.41%
ROICexcg growth 3Y46.33%
ROICexcg growth 5Y-10.66%
ROICexc growth 3Y42.83%
ROICexc growth 5Y-8.07%
OM growth 3Y30.17%
OM growth 5Y-0.79%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.95% | ||
| Profit Quality | 7783.33% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | N/A |
F-Score5
WACC9.09%
ROIC/WACC2.24
Cap/Depr(3y)28.19%
Cap/Depr(5y)37.45%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.65%
Profit Quality(3y)162.09%
Profit Quality(5y)1350.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.52%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%10.47%
EPS Next Y71.54%
EPS Next 2Y34.25%
EPS Next 3Y24.08%
EPS Next 5Y15.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.38%
Revenue Next Year0.39%
Revenue Next 2Y1.79%
Revenue Next 3Y2.24%
Revenue Next 5Y3.16%
EBIT growth 1Y6.92%
EBIT growth 3Y34.3%
EBIT growth 5Y3.33%
EBIT Next Year-15.56%
EBIT Next 3Y9.98%
EBIT Next 5Y9.23%
FCF growth 1Y8.88%
FCF growth 3Y-0.43%
FCF growth 5Y-0.15%
OCF growth 1Y3.21%
OCF growth 3Y-0.67%
OCF growth 5Y-0.96%