126.64 USD
+1.65 (+1.32%)
126.914 USD
+0.27 (+0.22%)
We assign a fundamental rating of 6 out of 10 to GILD. GILD was compared to 533 industry peers in the Biotechnology industry. GILD scores excellent on profitability, but 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. 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.
In the past 5 years GILD has always been profitable.
In the past 5 years GILD always reported a positive cash flow from operatings.
1.2 Ratios
GILD has a better Return On Assets (13.86%) than 94.75% of its industry peers.
The Return On Equity of GILD (37.80%) is better than 98.31% of its industry peers.
GILD's Return On Invested Capital of 18.54% is amongst the best of the industry. GILD outperforms 97.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILD is below the industry average of 18.83%.
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 95.68% of the companies in the same industry.
GILD's Profit Margin has declined in the last couple of years.
GILD has a better Operating Margin (38.96%) than 98.12% of its industry peers.
In the last couple of years the Operating Margin of GILD has grown nicely.
With an excellent Gross Margin value of 78.72%, GILD belongs to the best of the industry, outperforming 84.43% of the companies in the same industry.
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.
Compared to 1 year ago, GILD has about the same amount of shares outstanding.
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
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/WACC2.26
WACC8.21%
2.3 Liquidity
GILD has a Current Ratio of 1.53. This is a normal value and indicates that GILD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.53, GILD is not doing good in the industry: 81.99% of the companies in the same industry are doing better.
A Quick Ratio of 1.17 indicates that GILD should not have too much problems paying its short term obligations.
The Quick ratio of GILD (1.17) is worse than 85.18% 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.
GILD shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
The Revenue has been growing slightly by 5.08% on average over the past years.
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 19.49% yearly.
GILD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.46, the valuation of GILD can be described as correct.
Based on the Price/Earnings ratio, GILD is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. GILD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.36, GILD is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GILD indicates a rather cheap valuation: GILD is cheaper than 96.44% of the companies listed in the same industry.
GILD is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILD is valued cheaper than 96.62% 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 95.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 10.48 |
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 27.21% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y38.31%
EPS Next 3Y27.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, 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 74.20. GILD pays more dividend than 98.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, GILD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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.
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
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 2Y38.31%
EPS Next 3Y27.21%
126.64
+1.65 (+1.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners90.76%
Inst Owner Change1.88%
Ins Owners0.08%
Ins Owner Change-0.8%
Market Cap157.14B
Revenue(TTM)29.09B
Net Income(TTM)8.11B
Analysts81.11
Price Target133.63 (5.52%)
Short Float %1.45%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend3.14
Dividend Growth(5Y)4.45%
DP12%
Div Incr Years9
Div Non Decr Years9
Ex-Date
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)4.36%
PT rev (3m)5.52%
EPS NQ rev (1m)-9.76%
EPS NQ rev (3m)-12.29%
EPS NY rev (1m)1.49%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 14.36 | ||
| P/S | 5.4 | ||
| P/FCF | 16.51 | ||
| P/OCF | 16.25 | ||
| P/B | 7.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.48 |
EPS(TTM)8.19
EY6.47%
EPS(NY)8.82
Fwd EY6.96%
FCF(TTM)7.67
FCFY6.06%
OCF(TTM)7.79
OCFY6.15%
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
WACC8.21%
ROIC/WACC2.26
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 Y80.38%
EPS Next 2Y38.31%
EPS Next 3Y27.21%
EPS Next 5Y19.49%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y1.74%
Revenue growth 5Y5.08%
Sales Q2Q%2.97%
Revenue Next Year2.59%
Revenue Next 2Y2.94%
Revenue Next 3Y3.77%
Revenue Next 5Y4.34%
EBIT growth 1Y4.49%
EBIT growth 3Y2.36%
EBIT growth 5Y12.88%
EBIT Next Year75.69%
EBIT Next 3Y25.29%
EBIT Next 5Y19.03%
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 of GILEAD SCIENCES INC (GILD) stock?
ChartMill assigns a valuation rating of 8 / 10 to GILEAD SCIENCES INC (GILD). This can be considered as Undervalued.
Can you provide the profitability details for GILEAD SCIENCES INC?
GILEAD SCIENCES INC (GILD) has a profitability rating of 8 / 10.
How financially healthy is GILEAD SCIENCES INC?
The financial health rating of GILEAD SCIENCES INC (GILD) is 5 / 10.
Can you provide the expected EPS growth for GILD stock?
The Earnings per Share (EPS) of GILEAD SCIENCES INC (GILD) is expected to grow by 80.38% in the next year.