137.78 USD
+1.85 (+1.36%)
138.44 USD
+0.66 (+0.48%)
Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 525 industry peers in the Biotechnology industry. While GILD has a great profitability rating, there are some minor concerns on its financial health. GILD is valued quite cheap, while showing a decent growth score. This is a good combination! GILD also has an excellent dividend rating. This makes GILD very considerable 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 94.86% of the companies in the same industry.
- 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's Return On Invested Capital of 18.54% is amongst the best of the industry. GILD outperforms 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
- GILD has a better Profit Margin (27.88%) than 95.43% 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 98.29% of its industry peers.
- In the last couple of years the Operating Margin of GILD has grown nicely.
- GILD has a better Gross Margin (78.72%) than 84.95% of its industry peers.
- 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.
- 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
- 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/WACC2.21
WACC8.38%
2.3 Liquidity
- A Current Ratio of 1.53 indicates that GILD should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.53, GILD is not doing good in the industry: 80.57% of the companies in the same industry are doing better.
- 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's Quick ratio of 1.17 is on the low side compared to the rest of the industry. GILD is outperformed by 83.62% 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.
- Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 2.78% in the last 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 19.03% on average per year.
- 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
- 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
- Based on the Price/Earnings ratio of 16.82, the valuation of GILD can be described as correct.
- Based on the Price/Earnings ratio, GILD is valued cheaper than 95.62% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, GILD is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.43, GILD is valued correctly.
- Based on the Price/Forward Earnings ratio, GILD is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. GILD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 15.43 |
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.
- Based on the Price/Free Cash Flow ratio, GILD is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.96 | ||
| 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.
- GILD has an outstanding profitability rating, which 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%.
- 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 1.82.
| 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 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
- 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 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 16.82 and the Price/Book (PB) ratio is 7.97.
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%.