139.55 USD
-0.17 (-0.12%)
139.41 USD
-0.14 (-0.1%)
Overall GILD gets a fundamental rating of 6 out of 10. We evaluated GILD against 525 industry peers in the Biotechnology industry. GILD has an excellent profitability rating, but there are some minor concerns on its financial health. GILD may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
- 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 94.86% of its industry peers.
- GILD's Return On Equity of 37.80% is amongst the best of the industry. GILD outperforms 98.29% of its industry peers.
- With an excellent Return On Invested Capital value of 18.54%, GILD belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
- 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
- With an excellent Profit Margin value of 27.88%, GILD belongs to the best of the industry, outperforming 95.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of GILD has declined.
- GILD has a Operating Margin of 38.96%. This is amongst the best in the industry. GILD outperforms 98.29% of its industry peers.
- In the last couple of years the Operating Margin of GILD has grown nicely.
- Looking at the Gross Margin, with a value of 78.72%, GILD belongs to the top of the industry, outperforming 84.95% 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.
- GILD has less shares outstanding than it did 5 years ago.
- GILD has a worse debt/assets ratio than last year.
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/WACC2.2
WACC8.41%
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: 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.
- The Quick ratio of GILD (1.17) is worse than 83.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- GILD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.88%, which is quite impressive.
- GILD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.01% yearly.
- 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
- The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.04, GILD is valued on the expensive side.
- GILD's Price/Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 95.43% of the companies in the same industry.
- GILD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- With a Price/Forward Earnings ratio of 15.62, GILD is valued correctly.
- GILD's Price/Forward Earnings ratio is rather cheap when compared to the industry. GILD is cheaper than 95.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. GILD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
- GILD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GILD is cheaper than 96.38% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GILD is valued cheaper than 95.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.19 | ||
| EV/EBITDA | 11.63 |
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.
- A more expensive valuation may be justified as GILD's earnings are expected to grow with 27.36% in the coming years.
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%.
- GILD's Dividend Yield is rather good when compared to the industry average which is at 1.08. GILD pays more dividend than 98.48% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GILD pays a bit more dividend than the S&P500 average.
| 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
- GILD pays out 12.00% of its income as dividend. This is a 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 17.04 and the Price/Book (PB) ratio is 8.07.
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%.