135.93 USD
+4.79 (+3.65%)
135.81 USD
-0.12 (-0.09%)
We assign a fundamental rating of 6 out of 10 to GILD. GILD was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on GILD. GILD also has an excellent dividend rating. This makes GILD very considerable 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.
- 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 94.86% of its industry peers.
- GILD has a better Return On Equity (37.80%) than 98.29% of its industry peers.
- With an excellent Return On Invested Capital value of 18.54%, GILD belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 18.07%.
- 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 has a better Profit Margin (27.88%) than 95.43% of its industry peers.
- GILD's Profit Margin has declined in the last couple of years.
- The Operating Margin of GILD (38.96%) is better than 98.29% of its industry peers.
- GILD's Operating Margin has improved in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
- 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/WACC2.21
WACC8.39%
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 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 has a worse Quick ratio (1.17) than 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.
- 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.
- 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
- Based on estimates for the next years, GILD will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.03% on average per year.
- Based on estimates for the next years, GILD will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
EPS Next Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.03%
Revenue Next Year3.2%
Revenue Next 2Y3.32%
Revenue Next 3Y3.79%
Revenue Next 5Y3.76%
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.
- 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
- A Price/Earnings ratio of 16.60 indicates a correct valuation of GILD.
- GILD's Price/Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 95.81% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GILD to the average of the S&P500 Index (27.21), we can say GILD is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 15.33, GILD is valued correctly.
- Based on the Price/Forward Earnings ratio, GILD is valued cheaply inside the industry as 96.38% of the companies are valued more expensively.
- GILD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.6 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 96.95% of the companies in the same industry.
- GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 96.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 10.88 |
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 27.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
- GILD has a Yearly Dividend Yield of 2.61%.
- Compared to an average industry Dividend Yield of 1.18, GILD pays a better dividend. On top of this GILD pays more dividend than 98.67% of the companies listed in the same industry.
- GILD's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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.
- 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
- 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%
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%.