GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
USA - NASDAQ:GILD - US3755581036 - Common Stock
125.02 USD
-0.18 (-0.14%)
125.15 USD
+0.13 (+0.1%)
Taking everything into account, GILD scores 6 out of 10 in our fundamental rating. GILD was compared to 533 industry peers in the Biotechnology industry. While GILD has a great profitability rating, there are some minor concerns on its financial health. GILD scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
GILD had a positive operating cash flow in the past year.
Each year in the past 5 years GILD has been profitable.
In the past 5 years GILD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.86%, GILD belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
GILD has a Return On Equity of 37.80%. This is amongst the best in the industry. GILD outperforms 98.12% of its industry peers.
The Return On Invested Capital of GILD (18.54%) is better than 97.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GILD is in line with the industry average of 15.78%.
The 3 year average ROIC (16.22%) for GILD is below the current ROIC(18.54%), indicating increased profibility in the last year.
| 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 95.48% of the companies in the same industry.
GILD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 38.96%, GILD belongs to the top of the industry, outperforming 98.31% of the companies in the same industry.
GILD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.72%, GILD belongs to the top of the industry, outperforming 84.75% 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
GILD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GILD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, GILD has less shares outstanding
Compared to 1 year ago, GILD has a worse debt to assets ratio.
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/WACC2.27
WACC8.18%
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.
The Current ratio of GILD (1.53) is worse than 82.30% of its industry peers.
A Quick Ratio of 1.17 indicates that GILD should not have too much problems paying its short term obligations.
GILD's Quick ratio of 1.17 is on the low side compared to the rest of the industry. GILD is outperformed by 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.88%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.01% on average over the past years.
Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
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)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
GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.49% yearly.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.26, GILD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GILD to the average of the S&P500 Index (25.89), we can say GILD is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.18, which indicates a correct valuation of GILD.
96.23% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. GILD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 96.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.29 | ||
| EV/EBITDA | 10.34 |
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.
The excellent profitability rating of GILD may justify a higher PE ratio.
GILD's earnings are expected to grow with 27.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.31%
EPS Next 3Y27.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, GILD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 82.65, GILD pays a better dividend. On top of this GILD pays more dividend than 98.49% of the companies listed in the same industry.
GILD's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of GILD has a limited annual growth rate of 4.45%.
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)4.45%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
12.00% of the earnings are spent on dividend by GILD. This is a low number and sustainable payout ratio.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
125.02
-0.18 (-0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner Change1.86%
Ins Owners0.08%
Ins Owner Change-4.58%
Market Cap155.13B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target129.72 (3.76%)
Short Float %1.28%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP12%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.14%
Min EPS beat(2)0.6%
Max EPS beat(2)13.68%
EPS beat(4)3
Avg EPS beat(4)5.77%
Min EPS beat(4)-0.59%
Max EPS beat(4)13.68%
EPS beat(8)6
Avg EPS beat(8)10.36%
EPS beat(12)8
Avg EPS beat(12)8%
EPS beat(16)11
Avg EPS beat(16)5.39%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)3.87%
Revenue beat(8)5
Avg Revenue beat(8)1.32%
Revenue beat(12)8
Avg Revenue beat(12)1.67%
Revenue beat(16)12
Avg Revenue beat(16)2.95%
PT rev (1m)1.31%
PT rev (3m)7.49%
EPS NQ rev (1m)-10.56%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)0.65%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 14.18 | ||
| P/S | 5.33 | ||
| P/FCF | 16.29 | ||
| P/OCF | 16.05 | ||
| P/B | 7.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.34 |
EPS(TTM)8.19
EY6.55%
EPS(NY)8.82
Fwd EY7.05%
FCF(TTM)7.67
FCFY6.14%
OCF(TTM)7.79
OCFY6.23%
SpS23.44
BVpS17.29
TBVpS-3.89
PEG (NY)0.19
PEG (5Y)N/A
Graham Number56.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.86% | ||
| ROE | 37.8% | ||
| ROCE | 24.51% | ||
| ROIC | 18.54% | ||
| ROICexc | 23.24% | ||
| ROICexgc | 80.87% | ||
| OM | 38.96% | ||
| PM (TTM) | 27.88% | ||
| GM | 78.72% | ||
| FCFM | 32.73% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)16.22%
ROIC(5y)15.08%
ROICexc(3y)19.38%
ROICexc(5y)17.72%
ROICexgc(3y)93.83%
ROICexgc(5y)93.24%
ROCE(3y)21.45%
ROCE(5y)19.94%
ROICexgc growth 3Y-0.46%
ROICexgc growth 5Y15.06%
ROICexc growth 3Y13.04%
ROICexc growth 5Y6.39%
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%
F-Score7
Asset Turnover0.5
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 | 68.56% | ||
| Profit Quality | 117.39% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score7
WACC8.18%
ROIC/WACC2.27
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)84.88%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%22.28%
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.34%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.03%
FCF growth 1Y21.23%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y15.03%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%
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 of GILEAD SCIENCES INC (GILD) stock?
ChartMill assigns a valuation rating of 8 / 10 to GILEAD SCIENCES INC (GILD). This can be considered as Undervalued.
Can you provide the profitability details for GILEAD SCIENCES INC?
GILEAD SCIENCES INC (GILD) has a profitability rating of 8 / 10.
How financially healthy is GILEAD SCIENCES INC?
The financial health rating of GILEAD SCIENCES INC (GILD) is 5 / 10.
Can you provide the expected EPS growth for GILD stock?
The Earnings per Share (EPS) of GILEAD SCIENCES INC (GILD) is expected to grow by 80.38% in the next year.