122.6 USD
+1.5 (+1.24%)
122.1 USD
-0.5 (-0.41%)
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 528 industry peers in the Biotechnology industry. GILD has an excellent profitability rating, but 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. These ratings could make GILD a good candidate 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.
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 94.89% of the companies in the same industry.
The Return On Equity of GILD (37.80%) is better than 98.30% of its industry peers.
GILD has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. GILD outperforms 97.54% of its industry peers.
GILD had an Average Return On Invested Capital over the past 3 years of 16.22%. This is below the industry average of 18.28%.
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
The Profit Margin of GILD (27.88%) is better than 95.27% 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 98.11% 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 84.85% 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.
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/WACC2.25
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.53 indicates that GILD should not have too much problems paying its short term obligations.
GILD has a worse Current ratio (1.53) than 80.68% of its industry peers.
GILD has a Quick Ratio of 1.17. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
GILD has a worse Quick ratio (1.17) than 83.90% 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.
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.
Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
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.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
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
With a Price/Earnings ratio of 14.97, 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 96.02% of the companies listed in the same industry.
GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.82, the valuation of GILD can be described as correct.
96.40% 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 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
97.16% of the companies in the same industry are more expensive than GILD, based on the Enterprise Value to EBITDA ratio.
96.59% 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 | 15.98 | ||
| EV/EBITDA | 10.12 |
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.
A more expensive valuation may be justified as GILD's earnings are expected to grow with 27.13% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.62%.
Compared to an average industry Dividend Yield of 1.26, GILD pays a better dividend. On top of this GILD pays more dividend than 98.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, GILD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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
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 2Y38.7%
EPS Next 3Y27.13%
122.6
+1.5 (+1.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners91.58%
Inst Owner Change-0.16%
Ins Owners0.07%
Ins Owner Change-0.69%
Market Cap152.11B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target135.36 (10.41%)
Short Float %1.75%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP12%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)1.19%
PT rev (3m)5.72%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-12.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.82 | ||
| P/S | 5.23 | ||
| P/FCF | 15.98 | ||
| P/OCF | 15.73 | ||
| P/B | 7.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.12 |
EPS(TTM)8.19
EY6.68%
EPS(NY)8.87
Fwd EY7.23%
FCF(TTM)7.67
FCFY6.26%
OCF(TTM)7.79
OCFY6.36%
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
WACC8.22%
ROIC/WACC2.25
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 Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y3.76%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year76.48%
EBIT Next 3Y25.45%
EBIT Next 5Y19.27%
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 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 14.97 and the Price/Book (PB) ratio is 7.09.
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%.