GILEAD SCIENCES INC (GILD) Stock Fundamental Analysis
USA - NASDAQ:GILD - US3755581036 - Common Stock
123.11 USD
+0.3 (+0.24%)
123.11 USD
0 (0%)
GILD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 534 industry peers in the Biotechnology industry. GILD has an excellent profitability rating, but 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. With these ratings, GILD could be worth investigating further for value 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.
In the past 5 years GILD has always been profitable.
Each year in the past 5 years GILD had a positive operating cash flow.
1.2 Ratios
GILD's Return On Assets of 11.33% is amongst the best of the industry. GILD outperforms 94.19% of its industry peers.
With an excellent Return On Equity value of 32.08%, GILD belongs to the best of the industry, outperforming 97.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.69%, GILD belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GILD is in line with the industry average of 15.49%.
The last Return On Invested Capital (18.69%) for GILD is above the 3 year average (15.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROIC | 18.69% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
1.3 Margins
With an excellent Profit Margin value of 21.87%, GILD belongs to the best of the industry, outperforming 95.13% 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 (38.12%) than 98.13% of its industry peers.
In the last couple of years the Operating Margin of GILD has grown nicely.
The Gross Margin of GILD (78.53%) is better than 84.08% of its industry peers.
GILD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% |
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
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.
GILD has a worse debt/assets ratio than last year.
2.2 Solvency
GILD has an Altman-Z score of 4.07. This indicates that GILD is financially healthy and has little risk of bankruptcy at the moment.
GILD has a better Altman-Z score (4.07) than 72.28% of its industry peers.
The Debt to FCF ratio of GILD is 2.66, which is a good value as it means it would take GILD, 2.66 years of fcf income to pay off all of its debts.
GILD has a Debt to FCF ratio of 2.66. This is amongst the best in the industry. GILD outperforms 94.01% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that GILD has dependencies on debt financing.
GILD has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: GILD underperforms 77.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.07 |
ROIC/WACC2.08
WACC9%
2.3 Liquidity
GILD has a Current Ratio of 1.32. 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 worse Current ratio (1.32) than 83.71% of its industry peers.
GILD has a Quick Ratio of 1.15. 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 worse Quick ratio (1.15) than 85.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.68% 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 3.81% in the last 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)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
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 19.75% on average per year.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y79.22%
EPS Next 2Y37.87%
EPS Next 3Y27.35%
EPS Next 5Y19.75%
Revenue Next Year1.62%
Revenue Next 2Y2.78%
Revenue Next 3Y3.73%
Revenue Next 5Y4.34%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.91, GILD is valued correctly.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 96.44% of the companies are valued more expensively.
GILD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
GILD is valuated correctly with a Price/Forward Earnings ratio of 14.05.
Based on the Price/Forward Earnings ratio, GILD is valued cheaper than 95.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. GILD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaply inside the industry as 95.32% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GILD is valued cheaper than 96.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 12.49 |
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.
A more expensive valuation may be justified as GILD's earnings are expected to grow with 27.35% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y37.87%
EPS Next 3Y27.35%
5. Dividend
5.1 Amount
GILD has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 93.65, GILD pays a better dividend. On top of this GILD pays more dividend than 98.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GILD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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
GILD pays out 62.75% of its income as dividend. This is not a sustainable payout ratio.
GILD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.75%
EPS Next 2Y37.87%
EPS Next 3Y27.35%
123.11
+0.3 (+0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner Change0.06%
Ins Owners0.08%
Ins Owner Change-0.53%
Market Cap152.76B
Analysts81.11
Price Target128.04 (4%)
Short Float %1.47%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP62.75%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.01%
Min EPS beat(2)-0.59%
Max EPS beat(2)0.6%
EPS beat(4)3
Avg EPS beat(4)9.21%
Min EPS beat(4)-0.59%
Max EPS beat(4)27.44%
EPS beat(8)6
Avg EPS beat(8)10.79%
EPS beat(12)8
Avg EPS beat(12)9.42%
EPS beat(16)11
Avg EPS beat(16)7.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-0.31%
Revenue beat(4)2
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)5.61%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)2.54%
Revenue beat(16)12
Avg Revenue beat(16)3.8%
PT rev (1m)0%
PT rev (3m)7.6%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 14.05 | ||
| P/S | 5.29 | ||
| P/FCF | 16.3 | ||
| P/OCF | 15.48 | ||
| P/B | 7.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)7.74
EY6.29%
EPS(NY)8.76
Fwd EY7.12%
FCF(TTM)7.55
FCFY6.13%
OCF(TTM)7.95
OCFY6.46%
SpS23.26
BVpS15.86
TBVpS-5.81
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 32.08% | ||
| ROCE | 24.71% | ||
| ROIC | 18.69% | ||
| ROICexc | 21.16% | ||
| ROICexgc | 66.9% | ||
| OM | 38.12% | ||
| PM (TTM) | 21.87% | ||
| GM | 78.53% | ||
| FCFM | 32.46% |
ROA(3y)5.73%
ROA(5y)5.31%
ROE(3y)16.3%
ROE(5y)15.83%
ROIC(3y)15.57%
ROIC(5y)13.08%
ROICexc(3y)18.96%
ROICexc(5y)15.63%
ROICexgc(3y)99.97%
ROICexgc(5y)86.01%
ROCE(3y)20.58%
ROCE(5y)17.3%
ROICexcg growth 3Y0.13%
ROICexcg growth 5Y21.72%
ROICexc growth 3Y13.71%
ROICexc growth 5Y12.55%
OM growth 3Y1.21%
OM growth 5Y13.65%
PM growth 3Y-58.16%
PM growth 5Y-41.32%
GM growth 3Y1.06%
GM growth 5Y-0.23%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 18.01% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.64% | ||
| Profit Quality | 148.46% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 4.07 |
F-Score8
WACC9%
ROIC/WACC2.08
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)64.68%
EPS 3Y-14.17%
EPS 5Y-7.01%
EPS Q2Q%0%
EPS Next Y79.22%
EPS Next 2Y37.87%
EPS Next 3Y27.35%
EPS Next 5Y19.75%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%1.84%
Revenue Next Year1.62%
Revenue Next 2Y2.78%
Revenue Next 3Y3.73%
Revenue Next 5Y4.34%
EBIT growth 1Y5.92%
EBIT growth 3Y2.97%
EBIT growth 5Y19.42%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.07%
FCF growth 1Y4.96%
FCF growth 3Y-1.57%
FCF growth 5Y4.37%
OCF growth 1Y3.74%
OCF growth 3Y-1.66%
OCF growth 5Y3.44%