GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
NASDAQ:GILD - Nasdaq - US3755581036 - Common Stock - Currency: USD
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 571 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD is cheap, but on the other hand it scores bad on growth. With these ratings, GILD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year GILD was profitable.
In the past year GILD had a positive cash flow from operations.
GILD had positive earnings in each of the past 5 years.
Of the past 5 years GILD 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GILD (0.23%) is better than 92.72% of its industry peers.
GILD's Return On Equity of 0.69% is amongst the best of the industry. GILD outperforms 93.43% of its industry peers.
With an excellent Return On Invested Capital value of 19.19%, GILD belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
GILD had an Average Return On Invested Capital over the past 3 years of 15.59%. This is in line with the industry average of 14.04%.
The last Return On Invested Capital (19.19%) for GILD is above the 3 year average (15.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.69% | ||
| ROIC | 19.19% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.31%
ROE(5y)15.83%
ROIC(3y)15.59%
ROIC(5y)13.09%
1.3 Margins
The Profit Margin of GILD (0.45%) is better than 93.07% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
The Operating Margin of GILD (38.38%) is better than 99.29% of its industry peers.
In the last couple of years the Operating Margin of GILD has grown nicely.
Looking at the Gross Margin, with a value of 77.80%, GILD belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
GILD'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 3Y1.34%
OM growth 5Y13.73%
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GILD is creating value.
GILD has about the same amout of shares outstanding than it did 1 year ago.
GILD has less shares outstanding than it did 5 years ago.
There is no outstanding debt for GILD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GILD 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/WACC2.1
WACC9.12%
2.3 Liquidity
GILD has a Current Ratio of 1.11. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, GILD is not doing good in the industry: 86.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.82 indicates that GILD may have some problems paying its short term obligations.
GILD has a worse Quick ratio (0.82) than 90.76% 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 GILD have decreased strongly by -34.52% in the last year.
GILD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 6.04%.
Measured over the past years, GILD shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)-34.52%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%10.47%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%6.38%
3.2 Future
GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.97% yearly.
Based on estimates for the next years, GILD will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y75.31%
EPS Next 2Y35.27%
EPS Next 3Y24.57%
EPS Next 5Y15.97%
Revenue Next Year1.26%
Revenue Next 2Y2.38%
Revenue Next 3Y3.07%
Revenue Next 5Y3.15%
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 23.85, GILD is valued on the expensive side.
Based on the Price/Earnings ratio, GILD is valued cheaper than 95.56% of the companies in the same industry.
GILD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 13.60, which indicates a correct valuation of GILD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.45% of the companies listed in the same industry.
GILD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, GILD is valued cheaper than 97.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.97 | ||
| EV/EBITDA | N/A |
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 GILD may justify a higher PE ratio.
GILD's earnings are expected to grow with 24.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y35.27%
EPS Next 3Y24.57%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 9.08, GILD pays a better dividend. On top of this GILD pays more dividend than 98.76% of the companies listed in the same industry.
GILD's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of GILD has a limited annual growth rate of 5.90%.
GILD has been paying a dividend for at least 10 years, so it has a reliable track record.
As GILD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.9%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
GILD pays out 748.41% of its income as dividend. This is not a sustainable payout ratio.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP748.41%
EPS Next 2Y35.27%
EPS Next 3Y24.57%
109.95
-0.08 (-0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change1.78%
Ins Owners0.07%
Ins Owner Change2.41%
Market Cap137.00B
Analysts77.89
Price Target106.09 (-3.51%)
Short Float %1.84%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend3.06
Dividend Growth(5Y)5.9%
DP748.41%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)1.09%
PT rev (3m)14.54%
EPS NQ rev (1m)-1.57%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)2.77%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 13.6 | ||
| P/S | 4.84 | ||
| P/FCF | 13.97 | ||
| P/OCF | 13.67 | ||
| P/B | 7.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)4.61
EY4.19%
EPS(NY)8.08
Fwd EY7.35%
FCF(TTM)7.87
FCFY7.16%
OCF(TTM)8.04
OCFY7.32%
SpS22.71
BVpS14.76
TBVpS-8.4
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.69% | ||
| ROCE | 25.37% | ||
| ROIC | 19.19% | ||
| ROICexc | 21.75% | ||
| ROICexgc | 92.24% | ||
| OM | 38.38% | ||
| PM (TTM) | 0.45% | ||
| GM | 77.8% | ||
| FCFM | 34.65% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.31%
ROE(5y)15.83%
ROIC(3y)15.59%
ROIC(5y)13.09%
ROICexc(3y)18.98%
ROICexc(5y)15.64%
ROICexgc(3y)100.09%
ROICexgc(5y)86.08%
ROCE(3y)20.61%
ROCE(5y)17.32%
ROICexcg growth 3Y0.26%
ROICexcg growth 5Y21.81%
ROICexc growth 3Y13.85%
ROICexc growth 5Y12.63%
OM growth 3Y1.34%
OM growth 5Y13.73%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 7783.33% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | N/A |
F-Score5
WACC9.12%
ROIC/WACC2.1
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.52%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%10.47%
EPS Next Y75.31%
EPS Next 2Y35.27%
EPS Next 3Y24.57%
EPS Next 5Y15.97%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%6.38%
Revenue Next Year1.26%
Revenue Next 2Y2.38%
Revenue Next 3Y3.07%
Revenue Next 5Y3.15%
EBIT growth 1Y6.92%
EBIT growth 3Y3.1%
EBIT growth 5Y19.51%
EBIT Next Year66.28%
EBIT Next 3Y23.87%
EBIT Next 5Y15.92%
FCF growth 1Y24.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.25%
OCF growth 3YN/A
OCF growth 5YN/A