GILEAD SCIENCES INC (GILD)
US3755581036 - Common Stock
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 568 industry peers in the Biotechnology industry. GILD has an excellent profitability rating, but there are some minor concerns on its financial health. GILD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GILD had positive earnings in the past year.
GILD had a positive operating cash flow in the past year.
GILD had positive earnings in each of the past 5 years.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
GILD has a Return On Assets of 0.23%. This is amongst the best in the industry. GILD outperforms 92.57% of its industry peers.
Looking at the Return On Equity, with a value of 0.69%, GILD belongs to the top of the industry, outperforming 93.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.34%, GILD belongs to the top of the industry, outperforming 98.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 13.59%.
The last Return On Invested Capital (20.34%) for GILD 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
GILD's Profit Margin of 0.45% is amongst the best of the industry. GILD outperforms 93.10% of its industry peers.
GILD's Profit Margin has declined in the last couple of years.
GILD has a better Operating Margin (38.38%) than 99.29% of its industry peers.
In the last couple of years the Operating Margin of GILD has remained more or less at the same level.
GILD has a better Gross Margin (77.80%) than 86.02% of its industry peers.
In the last couple of years the Gross Margin of GILD has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GILD is creating some value.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
GILD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GILD is higher compared to a year ago.
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/WACC1.79
WACC11.34%
2.3 Liquidity
A Current Ratio of 1.11 indicates that GILD should not have too much problems paying its short term obligations.
GILD has a worse Current ratio (1.11) than 86.37% of its industry peers.
A Quick Ratio of 0.82 indicates that GILD may have some problems paying its short term obligations.
GILD's Quick ratio of 0.82 is on the low side compared to the rest of the industry. GILD is outperformed by 89.56% 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 -36.62% in the last year.
The Earnings Per Share has been growing slightly by 1.09% on average over the past years.
GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 3.31%.
Measured over the past years, GILD shows a small growth in Revenue. The Revenue has been growing by 4.15% on average per year.
EPS 1Y (TTM)-36.62%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-11.79%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%7.01%
3.2 Future
Based on estimates for the next years, GILD will show a small growth in Earnings Per Share. The EPS will grow by 4.85% on average per year.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y-35.88%
EPS Next 2Y4.19%
EPS Next 3Y4.51%
EPS Next 5Y4.85%
Revenue Next Year4.53%
Revenue Next 2Y2.17%
Revenue Next 3Y2.46%
Revenue Next 5Y3.05%
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
The Price/Earnings ratio is 20.90, which indicates a rather expensive current valuation of GILD.
Based on the Price/Earnings ratio, GILD is valued cheaper than 95.40% of the companies in the same industry.
GILD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 12.11, the valuation of GILD can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 97.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, GILD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
98.58% of the companies in the same industry are more expensive than GILD, based on the Enterprise Value to EBITDA ratio.
GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 98.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
The excellent profitability rating of GILD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)19.25
EPS Next 2Y4.19%
EPS Next 3Y4.51%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 8.74, GILD pays a better dividend. On top of this GILD pays more dividend than 98.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, GILD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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.
GILD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
The dividend of GILD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP748.41%
EPS Next 2Y4.19%
EPS Next 3Y4.51%
GILEAD SCIENCES INC
NASDAQ:GILD (12/20/2024, 8:14:46 PM)
After market: 92.56 -0.01 (-0.01%)92.57
+1.48 (+1.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.06%
Inst Owner Change1.42%
Ins Owners0.56%
Ins Owner Change-0.46%
Market Cap115.37B
Analysts77.44
Price Target99.86 (7.88%)
Short Float %1.88%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)12.25%
PT rev (3m)19.81%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)-7.9%
EPS NY rev (1m)5.07%
EPS NY rev (3m)15.6%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 12.11 | ||
| P/S | 4.08 | ||
| P/FCF | 11.76 | ||
| P/OCF | 11.51 | ||
| P/B | 6.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8 |
EPS(TTM)4.43
EY4.79%
EPS(NY)7.64
Fwd EY8.26%
FCF(TTM)7.87
FCFY8.5%
OCF(TTM)8.04
OCFY8.69%
SpS22.71
BVpS14.76
TBVpS-8.4
PEG (NY)N/A
PEG (5Y)19.25
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
WACC11.34%
ROIC/WACC1.79
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)-36.62%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-11.79%
EPS Next Y-35.88%
EPS Next 2Y4.19%
EPS Next 3Y4.51%
EPS Next 5Y4.85%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%7.01%
Revenue Next Year4.53%
Revenue Next 2Y2.17%
Revenue Next 3Y2.46%
Revenue Next 5Y3.05%
EBIT growth 1Y6.92%
EBIT growth 3Y34.3%
EBIT growth 5Y3.33%
EBIT Next Year-14.67%
EBIT Next 3Y10.25%
EBIT Next 5Y9.22%
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%