GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
USA - NASDAQ:GILD - US3755581036 - Common Stock
127.18 USD
+3.09 (+2.49%)
127.33 USD
+0.15 (+0.12%)
We assign a fundamental rating of 6 out of 10 to GILD. GILD was compared to 533 industry peers in the Biotechnology industry. While GILD belongs to the best of the industry regarding profitability, 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. GILD also has an excellent dividend rating. With these ratings, GILD could be worth investigating further for value and dividend investing!.
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.
Each year in the past 5 years GILD has been profitable.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.86%, GILD belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 37.80%, GILD belongs to the top of the industry, outperforming 97.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.54%, GILD belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GILD is in line with the industry average of 15.88%.
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
GILD's Profit Margin of 27.88% is amongst the best of the industry. GILD outperforms 95.50% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
With an excellent Operating Margin value of 38.96%, GILD belongs to the best of the industry, outperforming 98.31% of the companies in the same industry.
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 84.62% of the companies in the same industry.
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 | 38.96% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
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/WACC2.24
WACC8.26%
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.
GILD's Current ratio of 1.53 is on the low side compared to the rest of the industry. GILD is outperformed by 82.18% 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 85.74% 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.
The Revenue has been growing slightly by 2.78% in the past 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
The Earnings Per Share is expected to grow by 19.49% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 15.53 indicates a correct valuation of GILD.
GILD's Price/Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 96.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of GILD to the average of the S&P500 Index (25.51), we can say GILD is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.42, the valuation of GILD can be described as correct.
Based on the Price/Forward Earnings ratio, GILD is valued cheaper than 96.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, GILD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 97.00% 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 96.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 10.26 |
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 27.21% 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
GILD has a Yearly Dividend Yield of 2.52%.
GILD's Dividend Yield is rather good when compared to the industry average which is at 70.88. GILD pays more dividend than 98.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GILD has a dividend comparable with the average S&P500 company.
| 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 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
12.00% of the earnings are spent on dividend by GILD. This is a low number and sustainable payout ratio.
The dividend of GILD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
127.18
+3.09 (+2.49%)
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 Cap157.81B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target129.72 (2%)
Short Float %1.45%
Short Ratio2.46
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 | 15.53 | ||
| Fwd PE | 14.42 | ||
| P/S | 5.43 | ||
| P/FCF | 16.58 | ||
| P/OCF | 16.32 | ||
| P/B | 7.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.26 |
EPS(TTM)8.19
EY6.44%
EPS(NY)8.82
Fwd EY6.93%
FCF(TTM)7.67
FCFY6.03%
OCF(TTM)7.79
OCFY6.13%
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
WACC8.26%
ROIC/WACC2.24
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.