GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
USA - NASDAQ:GILD - US3755581036 - Common Stock
124.09 USD
-0.93 (-0.74%)
125 USD
+0.91 (+0.73%)
Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 533 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GILD. Finally 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.
In the past year GILD had a positive cash flow from operations.
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 13.86%. This is amongst the best in the industry. GILD outperforms 95.12% of its industry peers.
GILD has a Return On Equity of 37.80%. This is amongst the best in the industry. GILD outperforms 97.94% of its industry peers.
GILD has a better Return On Invested Capital (18.54%) than 97.37% of its industry peers.
GILD had an Average Return On Invested Capital over the past 3 years of 16.22%. This is in line with the industry average of 15.88%.
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
GILD has a better Profit Margin (27.88%) than 95.50% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
The Operating Margin of GILD (38.96%) is better than 98.31% 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 84.62% 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
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.
Compared to 1 year ago, GILD has a worse debt to assets ratio.
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/WACC2.24
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.53 indicates that GILD should not have too much problems paying its short term obligations.
The Current ratio of GILD (1.53) is worse than 82.18% 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.
With a Quick ratio value of 1.17, GILD is not doing good in the industry: 85.74% of the companies in the same industry are doing better.
| 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.
GILD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
The Revenue has been growing slightly by 2.78% in the past year.
GILD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
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
Based on estimates for the next years, GILD will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.49% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 15.15, the valuation of GILD can be described as correct.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 96.06% of the companies are valued more expensively.
GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.07 indicates a correct valuation of GILD.
Based on the Price/Forward Earnings ratio, GILD is valued cheaper than 96.25% of the companies in the same industry.
GILD is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 97.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GILD is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| 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.
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
With a Yearly Dividend Yield of 2.52%, GILD has a reasonable but not impressive dividend return.
GILD's Dividend Yield is rather good when compared to the industry average which is at 82.65. 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 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.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
124.09
-0.93 (-0.74%)
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 Cap153.97B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target129.72 (4.54%)
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 | 15.15 | ||
| Fwd PE | 14.07 | ||
| P/S | 5.29 | ||
| P/FCF | 16.17 | ||
| P/OCF | 15.93 | ||
| P/B | 7.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.34 |
EPS(TTM)8.19
EY6.6%
EPS(NY)8.82
Fwd EY7.11%
FCF(TTM)7.67
FCFY6.18%
OCF(TTM)7.79
OCFY6.28%
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
WACC8.27%
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.