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GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis

NASDAQ:GILD - Nasdaq - US3755581036 - Common Stock

92.96  +1.12 (+1.22%)

After market: 92.96 0 (0%)

Fundamental Rating

6

Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 572 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but there are some minor concerns on its financial health. GILD has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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8

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.
GILD had a positive operating cash flow in each of the past 5 years.
GILD Yearly Net Income VS EBIT VS OCF VS FCFGILD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

1.2 Ratios

GILD's Return On Assets of 0.23% is amongst the best of the industry. GILD outperforms 92.74% of its industry peers.
GILD has a better Return On Equity (0.69%) than 93.45% of its industry peers.
GILD has a Return On Invested Capital of 20.34%. This is amongst the best in the industry. GILD outperforms 98.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILD is in line with the industry average of 13.83%.
The 3 year average ROIC (15.05%) for GILD is below the current ROIC(20.34%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.23%
ROE 0.69%
ROIC 20.34%
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
GILD Yearly ROA, ROE, ROICGILD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

1.3 Margins

The Profit Margin of GILD (0.45%) is better than 93.10% of its industry peers.
In the last couple of years the Profit Margin of GILD has declined.
The Operating Margin of GILD (38.38%) is better than 99.29% of its industry peers.
In the last couple of years the Operating Margin of GILD has remained more or less at the same level.
GILD has a better Gross Margin (77.80%) than 86.02% of its industry peers.
GILD's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 38.38%
PM (TTM) 0.45%
GM 77.8%
OM growth 3Y30.17%
OM growth 5Y-0.79%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
GILD Yearly Profit, Operating, Gross MarginsGILD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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5

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.
The number of shares outstanding for GILD remains at a similar level compared to 1 year ago.
GILD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GILD has a worse debt to assets ratio.
GILD Yearly Shares OutstandingGILD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B
GILD Yearly Total Debt VS Total AssetsGILD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC1.92
WACC10.57%
GILD Yearly LT Debt VS Equity VS FCFGILD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.11 indicates that GILD should not have too much problems paying its short term obligations.
The Current ratio of GILD (1.11) is worse than 86.73% of its industry peers.
A Quick Ratio of 0.82 indicates that GILD may have some problems paying its short term obligations.
GILD has a Quick ratio of 0.82. This is amonst the worse of the industry: GILD underperforms 90.44% of its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.82
GILD Yearly Current Assets VS Current LiabilitesGILD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

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3

3. Growth

3.1 Past

GILD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.62%.
Measured over the past 5 years, GILD shows a small growth in Earnings Per Share. The EPS has been growing by 1.09% on average per year.
Looking at the last year, GILD shows a small growth in Revenue. The Revenue has grown by 3.31% in the last year.
The Revenue has been growing slightly by 4.15% on average over the past years.
EPS 1Y (TTM)-36.62%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-11.79%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%7.01%

3.2 Future

GILD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.92% yearly.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y-36.07%
EPS Next 2Y4.55%
EPS Next 3Y4.6%
EPS Next 5Y4.92%
Revenue Next Year4.49%
Revenue Next 2Y2.4%
Revenue Next 3Y2.56%
Revenue Next 5Y3.15%

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.
GILD Yearly Revenue VS EstimatesGILD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
GILD Yearly EPS VS EstimatesGILD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.98, which indicates a rather expensive current valuation of GILD.
Compared to the rest of the industry, the Price/Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 95.58% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, GILD is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.08, which indicates a correct valuation of GILD.
97.17% of the companies in the same industry are more expensive than GILD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GILD to the average of the S&P500 Index (24.44), we can say GILD is valued rather cheaply.
Industry RankSector Rank
PE 20.98
Fwd PE 12.08
GILD Price Earnings VS Forward Price EarningsGILD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 98.23% of the companies listed in the same industry.
98.05% of the companies in the same industry are more expensive than GILD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.81
EV/EBITDA 8.07
GILD Per share dataGILD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

GILD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)19.33
EPS Next 2Y4.55%
EPS Next 3Y4.6%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.36%, 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 9.83. GILD pays more dividend than 98.76% of the companies in the same industry.
GILD's Dividend Yield is a higher than the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 3.36%

5.2 History

The dividend of GILD has a limited annual growth rate of 5.90%.
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)5.9%
Div Incr Years9
Div Non Decr Years9
GILD Yearly Dividends per shareGILD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

748.41% of the earnings are spent on dividend by GILD. This is not a sustainable payout ratio.
GILD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP748.41%
EPS Next 2Y4.55%
EPS Next 3Y4.6%
GILD Yearly Income VS Free CF VS DividendGILD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B
GILD Dividend Payout.GILD Dividend Payout, showing the Payout Ratio.GILD Dividend Payout.PayoutRetained Earnings

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GILEAD SCIENCES INC

NASDAQ:GILD (1/21/2025, 8:03:26 PM)

After market: 92.96 0 (0%)

92.96

+1.12 (+1.22%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-11 2025-02-11/amc
Inst Owners87.91%
Inst Owner Change-0.32%
Ins Owners0.07%
Ins Owner Change-0.59%
Market Cap115.85B
Analysts77.37
Price Target100.8 (8.43%)
Short Float %2.06%
Short Ratio3.7
Dividend
Industry RankSector Rank
Dividend Yield 3.36%
Yearly Dividend3.06
Dividend Growth(5Y)5.9%
DP748.41%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.31%
Min EPS beat(2)23.18%
Max EPS beat(2)27.44%
EPS beat(4)3
Avg EPS beat(4)14.95%
Min EPS beat(4)-4.16%
Max EPS beat(4)27.44%
EPS beat(8)5
Avg EPS beat(8)9.12%
EPS beat(12)8
Avg EPS beat(12)5.27%
EPS beat(16)10
Avg EPS beat(16)7.18%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)1.47%
Max Revenue beat(2)5.61%
Revenue beat(4)3
Avg Revenue beat(4)2.18%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)5.61%
Revenue beat(8)6
Avg Revenue beat(8)2.27%
Revenue beat(12)10
Avg Revenue beat(12)3.78%
Revenue beat(16)12
Avg Revenue beat(16)3.39%
PT rev (1m)0.94%
PT rev (3m)20.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.9%
EPS NY rev (1m)0%
EPS NY rev (3m)15.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.18%
Valuation
Industry RankSector Rank
PE 20.98
Fwd PE 12.08
P/S 4.09
P/FCF 11.81
P/OCF 11.56
P/B 6.3
P/tB N/A
EV/EBITDA 8.07
EPS(TTM)4.43
EY4.77%
EPS(NY)7.69
Fwd EY8.28%
FCF(TTM)7.87
FCFY8.47%
OCF(TTM)8.04
OCFY8.65%
SpS22.71
BVpS14.76
TBVpS-8.4
PEG (NY)N/A
PEG (5Y)19.33
Profitability
Industry RankSector Rank
ROA 0.23%
ROE 0.69%
ROCE 25.37%
ROIC 20.34%
ROICexc 23.06%
ROICexgc 97.8%
OM 38.38%
PM (TTM) 0.45%
GM 77.8%
FCFM 34.65%
ROA(3y)8.52%
ROA(5y)6.89%
ROE(3y)25.33%
ROE(5y)20.11%
ROIC(3y)15.05%
ROIC(5y)11.55%
ROICexc(3y)17.6%
ROICexc(5y)14.47%
ROICexgc(3y)105.86%
ROICexgc(5y)78.76%
ROCE(3y)18.77%
ROCE(5y)14.41%
ROICexcg growth 3Y46.33%
ROICexcg growth 5Y-10.66%
ROICexc growth 3Y42.83%
ROICexc growth 5Y-8.07%
OM growth 3Y30.17%
OM growth 5Y-0.79%
PM growth 3Y247.42%
PM growth 5Y-3.26%
GM growth 3Y-1.53%
GM growth 5Y-0.07%
F-Score5
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 73.95%
Profit Quality 7783.33%
Current Ratio 1.11
Quick Ratio 0.82
Altman-Z N/A
F-Score5
WACC10.57%
ROIC/WACC1.92
Cap/Depr(3y)28.19%
Cap/Depr(5y)37.45%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.65%
Profit Quality(3y)162.09%
Profit Quality(5y)1350.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-36.62%
EPS 3Y-0.24%
EPS 5Y1.09%
EPS Q2Q%-11.79%
EPS Next Y-36.07%
EPS Next 2Y4.55%
EPS Next 3Y4.6%
EPS Next 5Y4.92%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y3.17%
Revenue growth 5Y4.15%
Sales Q2Q%7.01%
Revenue Next Year4.49%
Revenue Next 2Y2.4%
Revenue Next 3Y2.56%
Revenue Next 5Y3.15%
EBIT growth 1Y6.92%
EBIT growth 3Y34.3%
EBIT growth 5Y3.33%
EBIT Next Year-16.29%
EBIT Next 3Y10.03%
EBIT Next 5Y9.22%
FCF growth 1Y8.88%
FCF growth 3Y-0.43%
FCF growth 5Y-0.15%
OCF growth 1Y3.21%
OCF growth 3Y-0.67%
OCF growth 5Y-0.96%