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 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. 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
- In the past year GILD was profitable.
- In the past year GILD had a positive cash flow from operations.
- 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
- GILD has a better Return On Assets (13.86%) than 94.86% of its industry peers.
- With an excellent Return On Equity value of 37.80%, GILD belongs to the best of the industry, outperforming 98.29% of the companies in the same industry.
- GILD has a better Return On Invested Capital (18.54%) than 97.52% 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 18.07%.
- 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 95.43% 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.
- GILD has a Gross Margin of 78.72%. This is amongst the best in the industry. GILD outperforms 84.95% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GILD 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.
- The debt/assets ratio for GILD is higher compared to a year ago.
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
WACC8.39%
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 has a Current ratio of 1.53. This is amonst the worse of the industry: GILD underperforms 80.76% 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 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.
- GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y80.49%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.60, GILD is valued correctly.
- 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.
- GILD is valuated correctly with a Price/Forward Earnings ratio of 15.22.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.00% of the companies listed in the same industry.
- GILD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
- GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GILD is cheaper than 96.76% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.00% of the companies listed in the same industry.
| 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.
- The excellent profitability rating of GILD 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.
- 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 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%.