135.93 USD
+4.79 (+3.65%)
135.81 USD
-0.12 (-0.09%)
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. While GILD has a great profitability rating, there are some minor concerns on its financial health. GILD may be a bit undervalued, certainly considering the very reasonable score on growth Finally GILD also has an excellent dividend rating. These ratings would make GILD suitable for value and dividend 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.
- In the past 5 years GILD has always been profitable.
- GILD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GILD has a better Return On Assets (13.86%) than 94.86% of its industry peers.
- The Return On Equity of GILD (37.80%) is better than 98.29% of its industry peers.
- The Return On Invested Capital of GILD (18.54%) is better than 97.52% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 18.07%.
- The last Return On Invested Capital (18.54%) for GILD 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%, GILD belongs to the best of the industry, outperforming 95.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of GILD has declined.
- GILD has a better Operating Margin (38.96%) than 98.29% of its industry peers.
- In the last couple of years the Operating Margin of GILD has grown nicely.
- With an excellent Gross Margin value of 78.72%, GILD belongs to the best of the industry, outperforming 84.95% 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 | 38.96% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GILD is creating value.
- The number of shares outstanding for GILD remains at a similar level compared to 1 year ago.
- The number of shares outstanding for GILD has been reduced compared to 5 years ago.
- GILD has a worse debt/assets ratio than last year.
2.2 Solvency
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.21
WACC8.38%
2.3 Liquidity
- GILD has a Current Ratio of 1.53. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.53, GILD is doing worse than 80.76% of the companies in the same industry.
- A Quick Ratio of 1.17 indicates that GILD should not have too much problems paying its short term obligations.
- The Quick ratio of GILD (1.17) is worse than 83.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 84.88% over the past year.
- Measured over the past years, GILD shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.01% on average per year.
- GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
- The Revenue has been growing slightly by 5.08% on average over the past years.
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 19.03% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.76% on average over the next years.
EPS Next Y80.49%
EPS Next 2Y39.19%
EPS Next 3Y27.36%
EPS Next 5Y19.03%
Revenue Next Year3.2%
Revenue Next 2Y3.26%
Revenue Next 3Y3.79%
Revenue Next 5Y3.76%
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
- GILD is valuated correctly with a Price/Earnings ratio of 16.60.
- Based on the Price/Earnings ratio, GILD is valued cheaper than 95.62% of the companies in the same industry.
- GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.22 indicates a correct valuation of GILD.
- 96.00% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
- GILD'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 | 16.6 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.76% of the companies listed in the same industry.
- 96.00% of the companies in the same industry are more expensive than GILD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
- GILD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GILD has an outstanding profitability rating, which may justify a higher PE ratio.
- GILD's earnings are expected to grow with 27.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y39.19%
EPS Next 3Y27.36%
5. Dividend
5.1 Amount
- GILD has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.08, GILD pays a better dividend. On top of this GILD pays more dividend than 98.48% of the companies listed in the same industry.
- GILD's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- The dividend of GILD has a limited annual growth rate of 4.45%.
- GILD has paid a dividend for at least 10 years, which is 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)4.45%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- GILD pays out 12.00% of its income as dividend. This is a sustainable payout ratio.
- The dividend of GILD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12%
EPS Next 2Y39.19%
EPS Next 3Y27.36%
GILEAD SCIENCES INC / GILD FAQ
What is the ChartMill fundamental rating of GILEAD SCIENCES INC (GILD) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GILD.
What is the valuation status for GILD stock?
ChartMill assigns a valuation rating of 8 / 10 to GILEAD SCIENCES INC (GILD). This can be considered as Undervalued.
How profitable is GILEAD SCIENCES INC (GILD) stock?
GILEAD SCIENCES INC (GILD) has a profitability rating of 8 / 10.
What is the valuation of GILEAD SCIENCES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GILEAD SCIENCES INC (GILD) is 16.6 and the Price/Book (PB) ratio is 7.86.
How sustainable is the dividend of GILEAD SCIENCES INC (GILD) stock?
The dividend rating of GILEAD SCIENCES INC (GILD) is 7 / 10 and the dividend payout ratio is 12%.