122.74 USD
-0.44 (-0.36%)
122.544 USD
-0.2 (-0.16%)
Taking everything into account, GILD scores 6 out of 10 in our fundamental rating. GILD was compared to 530 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but 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. These ratings would make GILD suitable 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.
Each year in the past 5 years GILD has been profitable.
GILD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GILD's Return On Assets of 13.86% is amongst the best of the industry. GILD outperforms 94.72% of its industry peers.
With an excellent Return On Equity value of 37.80%, GILD belongs to the best of the industry, outperforming 98.30% of the companies in the same industry.
GILD has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. GILD outperforms 97.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GILD is in line with the industry average of 18.22%.
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
Looking at the Profit Margin, with a value of 27.88%, GILD belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
GILD's Profit Margin has declined in the last couple of years.
GILD's Operating Margin of 38.96% is amongst the best of the industry. GILD outperforms 98.11% 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 84.91% 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
GILD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
Compared to 5 years ago, GILD has less shares outstanding
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/WACC2.25
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.53 indicates that GILD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, GILD is doing worse than 81.89% of the companies in the same industry.
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 85.28% 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.
The Earnings Per Share has been decreasing by -7.01% on average over the past years.
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
GILD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.55% yearly.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.55%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y4.01%
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 14.99, the valuation of GILD can be described as correct.
GILD's Price/Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 95.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of GILD to the average of the S&P500 Index (26.51), we can say GILD is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.84 indicates a correct valuation of GILD.
GILD's Price/Forward Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 96.42% of the companies in the same industry.
GILD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 96.98% of the companies are valued more expensively.
GILD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GILD is cheaper than 96.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
The 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)0.19
PEG (5Y)N/A
EPS Next 2Y38.7%
EPS Next 3Y27.13%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
GILD's Dividend Yield is rather good when compared to the industry average which is at 1.05. GILD pays more dividend than 98.49% of the companies in the same industry.
GILD's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 2Y38.7%
EPS Next 3Y27.13%
122.74
-0.44 (-0.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners91.32%
Inst Owner Change1.94%
Ins Owners0.07%
Ins Owner Change-0.83%
Market Cap152.28B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.08
Price Target135.36 (10.28%)
Short Float %1.75%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP12%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)1.3%
PT rev (3m)5.72%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-12.46%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 13.84 | ||
| P/S | 5.24 | ||
| P/FCF | 16 | ||
| P/OCF | 15.75 | ||
| P/B | 7.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.18 |
EPS(TTM)8.19
EY6.67%
EPS(NY)8.87
Fwd EY7.23%
FCF(TTM)7.67
FCFY6.25%
OCF(TTM)7.79
OCFY6.35%
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
WACC8.22%
ROIC/WACC2.25
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 Y80.6%
EPS Next 2Y38.7%
EPS Next 3Y27.13%
EPS Next 5Y19.55%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year3.16%
Revenue Next 2Y3.13%
Revenue Next 3Y3.74%
Revenue Next 5Y4.01%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year76.48%
EBIT Next 3Y25.45%
EBIT Next 5Y19.13%
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 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 14.99 and the Price/Book (PB) ratio is 7.1.
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%.